Ada Pelonia

THE National Food Authority (NFA) failed to attract enough bidders for its auction of more than 37,000 metric tons (MT) of aging rice stocks last June 30.

NFA Administrator Larry Lacson told the BusinessMirror that the lack of interest in the agency’s fourth round of tender likely stemmed from the “high” floor price.

“Only one participated and they got disqualified. They said the floor price was high, so we’ll reassess it and then hold the auction again,” Lacson told this newspaper.

“By rule, there is a certain percentage that allows the lowering of [floor prices] if needed,” he added, not disclosing the potential decrease in prices.

The previous prices ranged from P22 to P28 per kilo, depending on how long the rice has been stored. The approved volume in the latest auction covers milled rice stocks aged 6 to 18 months.

In May, Lacson said the NFA would slightly increase the floor price following the uptick in retail rice prices.

Given the failed auction, the NFA chief said the grains agency is targeting to hold another bidding of aging rice stocks this month, with the same volume of 741,570 50-kilo bags or 37,078 MT.

Buying price

Earlier, the NFA announced that it will increase its buying price for dry palay to P27 per kilo in the wet season harvest to ensure profitability of farmers. (See: https://businessmirror.com.ph/2026/06/01/nfa-to-raise-buying-price-for-dry-palay-to-P27-a-kilo/)

Agriculture Secretary Francisco Tiu Laurel Jr., who chairs the NFA Council, said the move aims to shield planters from losses despite the spike in fertilizer and fuel prices.

“Even before harvest starts nationwide, the NFA will already set a buying price of P22 per kilo for wet palay and P27 per kilo for dry palay,” Tiu Laurel said. “The goal is to set a benchmark for the industry and help ensure that farmers can earn a reasonable profit.”

Lacson said the grains agency intends to play a more active role in the coming harvest season.

“Unlike during the dry season when we came in later mainly to match prices already being offered by private traders, we will be more aggressive this coming season. We will be buying early and at higher prices,” Lacson said.

For the dry season harvest, the NFA purchased dry palay at a range of P25 to P30 per kilo.

Image credits: Nonie Reyes

Published Date: July 7, 2026