Ada Pelonia

The National Food Authority (NFA) has lowered the floor price of aging rice stocks by at least P2 per kilo in its bid to attract more bidders in its December auction. 

NFA Administrator Larry Lacson expressed the hope that the reduced floor price would entice more buyers for the agency’s aging rice stocks during its second tender on December 5. 

“The first auction in October failed because not many participants joined. It wasn’t that attractive for them. So, we slightly adjusted the prices,” Lacson told reporters in a recent press briefing.

He also said the food agency will conduct an auction every month to free up its warehouses of aging rice stocks. 

Under the revised scheme, the NFA will sell 1.16 million 50-kilo bags or 57,920 metric tons (MT) of aging rice with a total transaction value (TTV) of P1.44 billion.

Broken down, the bulk of the volume consisted of stocks aged more than three months to six months at 578,340 50-kilo bags (28,917 MT). This was followed by rice stored for over six months to nine months at 457,340 50-kilo bags (22,867 MT).

Meanwhile, 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; over nine months to 12 months, P23.84 per kilo.

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

For the initial auction, the NFA introduced a graduated pricing scheme, with floor prices ranging from P27.96 to P25.01 per kilo depending on how long the rice has been stored.

Under current rules, the grains agency’s rice stocks are considered “aging” starting from the third month after milling.

The second auction is open to interested farmers’ organizations, cooperatives, or groups and private individuals or entities engaged in the grains business, including processing, wholesaling, and retailing. 

“We’re hoping the auction in December will be more successful because of the current import ban, and there won’t be enough stocks,” Lacson said. “It’s also included in the country’s buffer stock, so we should release it to help tame rice prices.”

Last month, the NFA said it is seeking about P3 billion in additional funds to rent private warehouses and buy more unmilled rice following the damage caused by typhoons.

Lacson said NFA warehouses are already “almost full,” making it difficult to expand procurement without additional government support.

“Right now, to be honest, we don’t have funds for renting warehouses because the NFA as a [government-owned or -controlled corporation] relies only on rice sales to cover expenses. And our expenses are bigger than the money coming in.”

Image credits: BLOOMBERG

Published Date: November 17, 2025