Ada Pelonia

The National Food Authority (NFA) will start accepting bids for the third round of auction for over 750,000 50-kilo bags of aging rice stocks on February 5.

In a document obtained by BusinessMirror, the NFA said it will sell 754,565 50-kilo bags or 37,728 metric tons (MT) of its aging rice inventory.

As the grains agency maintained the floor prices ranging from P22.52 to P25.16 per kilo, the NFA expects to gain between P849 million and P949 million.

The NFA will issue auction documents on February 5, with the pre-auction conference slated on February 13. The documents and receipt will be available at the regional offices and central office until February 18 and February 19, respectively. The opening of auction tenders will be on February 20. 

For the third auction, the minimum acceptable price (MAP) for rice stocks stored in warehouses for more than three months to six months is P25.16 per kilo; for more than six months to nine months, P24.63 per kilo; and for those over nine months to 12 months, P23.84 per kilo.

For rice stocks aged over 12 months to 15 months, MAP is at P23.31 per kilo, while for those aged more than 15 months to 18 months, and over 18 months, the floor price is P22.52 per kilo.

The NFA’s rice stockpile are considered “aging” starting from the third month after milling.

For its second tender last December, the grains agency awarded 315,000 50-kilo bags or 15,750 MT, accounting for 28 percent of the 55,579 MT they were expected to bid out.

NFA Administrator Larry Lacson said the winning prices for that round fell within the P22.52 to P25.16 per kilo range, which had been lowered to entice participants after its first auction last October failed.

When asked if he had reservations that the third tender might fail, given that the government recently lifted the ban on foreign rice shipments, Lacson said: “We have yet to see.”

For 2026, the grains agency’s budget to procure palay stood at P14 billion. Of this, P9 billion was allocated under this year’s General Appropriations Act (GAA), along with the P5 billion carryover fund from last year.

At an average buying price of P23 per kilo, the grains agency could purchase up to 608.7 million kilos of unmilled rice. As daily consumption is pegged at 37,500 kilos, this could last for 16 days.

While this could cover the mandated 15-day rice buffer stocks, Lacson raised a caveat that the P20 per kilo program and natural calamities could put pressure on its resources (See: https://businessmirror.com.ph/2026/01/12/nfa-seeks-elbow-room-for-rice-procurement/). 

Data from the Philippine Statistics Authority (PSA) showed that the rice country’s rice output reached 19.68 million metric tons (MMT) in 2025, falling short of reaching another record harvest.

PSA figures indicated that that the country’s rice production last year inched up by 3 percent from the 19.09 MMT recorded in 2024.

Albeit higher, the latest figures failed to surpass the all-time-high palay output in 2023 at 20.06 MMT.

Image credits: Nonoy Lacza

Published Date: January 26, 2026