NFA to auction older rice stocks in May

THE National Food Authority (NFA) said its council has approved for auction up to 62,890 metric tons (MT) of ageing rice stocks this year, with initial volumes to be offered in May.

NFA Administrator Larry R. Lacson said the approved volume covers all rice inventories that are three months or older, eliminating the need for repeated council approvals for each auction round.

However, he said the NFA will not dispose of the entire aging stock at once.

“We will prioritize the oldest stocks first, then proceed gradually to the newer ones,” he told reporters by phone on Wednesday.

For May, the NFA is targeting to auction about 5,000 to 20,000 MT of rice, which includes stocks aged 12 months and older. Pre-auction conferences and related processes will begin this month.

Mr. Lacson said the timing and volume of succeeding auctions will depend on the extent of palay (unmilled rice) procurement, with the NFA seeking to maintain at least a nine-day reserve.

“If procurement is strong, we can speed up auctions. If purchases are limited, we will also limit the volume we release,” he said.

Mr. Lacson said the NFA Council also approved 232,141 MT of ageing palay for disposal, although these will not be included in the initial auction.

He said the NFA will first conduct test milling on older palay stocks to assess quality before deciding on the mode of disposal.

“We will conduct test milling first. If the results show that the quality of rice is good, we may just mill and sell them as milled rice,” Mr. Lacson said.

The NFA said the auction is intended to free up storage space, prevent the further deterioration of stocks, and ensure these are disposed of before becoming unfit for human consumption.

The auction also serves as an additional revenue stream for the NFA, helping generate funds to support its operations and future palay procurement. — Vonn Andrei E. Villamiel