News Details

DA Prepares for Criticism as NFA Sets Auction of Aging Rice Stocks

NPO

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September 4, 2025

MANILA, PHILIPPINES--Agriculture Secretary Francisco P. Tiu Laurel Jr. said he is ready to face criticism as the National Food Authority (NFA) moves to auction off up to 60,000 metric tons of aging rice stocks in October.

The sale will first be offered to government relief and other agencies before being opened to the public. It comes after President Ferdinand Marcos Jr. announced a two-month suspension of rice imports beginning September 1, aimed at boosting palay prices during peak harvest.

“Make no mistake—we expect critics to pounce the moment we hold the auction,” Tiu Laurel, who also chairs the NFA Council, admitted. “They’ll say the rice is weevil-infested, of poor quality, and accuse us of negligence. But this is the inevitable consequence of stripping the NFA of its full powers under the Rice Tariffication Law.”

He explained that the RTL has limited the NFA’s capacity to rotate stocks efficiently and prevented long-term investment in modern storage facilities such as silos and temperature-controlled warehouses. “Unless we’re allowed to manage our stocks more efficiently and invest in long-term storage, spoilage will continue to haunt us,” he cautioned.

The planned auction aims to address three priorities: prevent possible supply shortfalls, free up warehouse space for the incoming palay harvest, and dispose of rice nearing spoilage. Rice is considered “aging” after three months from milling. A graduated pricing scheme will be implemented, with floor prices ranging from ₱27.96 to ₱25.01 per kilo depending on storage age.

Currently, the NFA maintains a buffer stock of 450,000 metric tons, enough for 12 days of emergency national supply. The auction volume—around 1.2 million sacks—accounts for about 13 percent of that buffer.

An earlier plan to auction palay stocks was dropped after market prices declined.

NPO News Team | DA Press Office-PR