NFA to auction nearly 37,000 MT in old rice stock – BusinessWorld Online
THE National Food Authority (NFA) said it will auction nearly 37,000 metric tons (MT) of ageing rice to free up warehouse space and improve inventory turnover ahead of the upcoming harvest.
According to the bid invitation, the NFA said the auction will cover about 737,339 50-kilogram bags of rice, or a total of 36,867 MT, valued at approximately P909.8 million.
A pre-auction conference is scheduled on Feb. 13, while the opening of auction tenders will be held on Feb. 20.
The stocks offered for sale are priced between P22.52 per kilogram and P25.16, depending on how long the grain has been stored.
The rice stocks have been in storage between three and 18 months, with 88.1% aged between three and nine months.
“Our milled rice inventory is at 2.74 million bags, and about 700,000 bags of that will be auctioned,” NFA Administrator Larry R. Lacson told reporters. “The remaining two million bags are intended for disposal during calamities, the P20 rice program, and other emergency requirements.”
The NFA reported that as of Jan. 31, its milled rice inventory was the equivalent of 8.52 million bags, or around 426,000 MT, including palay (unmilled rice) holdings yet to be milled.
According to the NFA, the national rice reserve is equivalent to 11.03 days’ demand. — Vonn Andrei E. Villamiel
