THE National Food Authority (NFA) will take new bids for up to 58,000 metric tons (MT) of aging rice stocks in December after an “unsuccessful” first auction in September, NFA Administrator Larry R. Lacson told reporters at a briefing.
Mr. Lacson said prices have been lowered by about P2 per age category to attract buyers, adopting a graduated pricing scheme ranging from P22.52 to P25.16 per kilo depending on the length of storage.
The auction of aging rice is meant to free up warehouse space and help stabilize supply following the suspension of rice imports. Aging rice refers to milled grain that has been stored for three months or more.
“’Yung unang auction nag-fail, wala masyadong sumali … hindi ganun ka-attractive. Based on the rules, nag-adjust tayo. Bumaba ng konti ang presyo (The first auction failed because few participated. The pricing wasn’t attractive enough. Based on the rules, we adjusted and lowered prices slightly.),” Mr. Lacson said.
The auction covers 1.16 million bags, valued at nearly P1.44 billion. Half of the rice to be offered are six months old or less.
The NFA said the sale will be open to both government agencies and private entities.
It expects demand to pick up with the market tightening following the suspension of rice imports.
“We are hoping to be more successful this December. Walang importation, kulang ang stocks. Tapos kailangan natin ma-release para ma-tame ’yung price (There are no rice imports; supply is tight. We need to release these stocks to help tame prices.),” Mr. Lacson said.
The NFA said it aims to conduct monthly auctions to turn over its inventory faster.
The volume up for auction in December represents about 12.6% of the NFA’s buffer stock.
The NFA said its rice buffer stock has risen to 460,000 MT from its previous 453,000 MT, enough for 12.03 days of emergency requirements.
“Nasa 94% of palay buying target na tayo ngayon. Mas marami ang nabibili nating palay kaysa sa lumalabas. Tumaas ng 7,000 pa ang ating buffer stock (We have hit around 94% of our buying target for unmilled rice (palay) for the year. We are buying more palay than what we release. Our buffer stock increased 7,000 MT),” Mr. Lacson said.
The NFA said it aims to raise the national rice reserve to a level equivalent to 15 days’ demand next year, equivalent to around 900,000 MT of palay. — Vonn Andrei E. Villamiel