Manila, Philippines – The National Food Authority (NFA) successfully auctioned off nearly 90 percent of its aging rice stocks on Friday, February 20, generating P936.5 million in revenue – exceeding its target of P912.4 million – and crucially, freeing up vital warehouse space ahead of the upcoming harvest season. The auction results signal a positive step toward stabilizing the country’s rice supply and supporting local farmers, a key priority following a food security emergency declared in 2025 due to rising prices.
The move comes as the Department of Agriculture (DA) seeks to balance the needs of both rice farmers and consumers, a challenge highlighted by Agriculture Secretary Francisco P. Tiu Laurel Jr. He emphasized that clearing warehouse space is as important as the revenue generated. “But more important than the revenue the auction raised is the space it cleared in warehouses that will allow NFA to buy more palay from our farmers at a fair price,” Laurel said, according to the DA.
NFA Administrator Larry Lacson expressed satisfaction with the outcome of the rice tender, noting the strong demand despite the age of the stocks. “We are extremely pleased with the results, which allowed us to raise P936.5 million compared to the target amount of P912.4 million from the entire lot,” Lacson stated. “We basically sold a total of 32.5 million kilos of rice at an average price of P28 a kilo.”
Auction Details and Demand
The NFA offered a total of 737,339 50-kilo bags of milled rice for auction, rice that had been in storage for between three and 18 months. To reflect the age of the stocks, the NFA established floor prices ranging from P25.16 per kilo for rice stored for three to six months, down to P22.52 per kilo for rice held for over 18 months. Despite these age-based price floors, the average price achieved – P28 per kilo – demonstrates robust demand.
Of the 83 lots offered, the NFA secured tenders for 57, representing 604,364 bags, or 88 percent of the total volume. Thirty-nine bidders initially purchased bid documents, with 19 ultimately expected to finalize contracts. Bid documents are currently undergoing validation by the NFA before the sale contracts are completed.
Supporting Local Palay Procurement
The cleared warehouse space is now earmarked for the procurement of palay – unhusked rice – directly from local farmers. The NFA plans to purchase wet palay at a minimum of P17 per kilo and dry palay at a floor price of P21 per kilo. This initiative is particularly timely as the dry harvest season for rice is expected to peak between April, and May. The agency’s strategy aims to provide farmers with a fair price for their crops while simultaneously bolstering the national buffer stock.
This auction follows a similar sale in December, where the NFA auctioned 315,000 bags of aging rice, with prices falling within the expected range of P22.52 to P25.16 per kilo. The higher average price achieved in the February 20 auction suggests a strengthening market and increased confidence in the NFA’s ability to manage rice supplies.
Looking Ahead: Market Intervention and Buffer Stock Management
With increased financial liquidity and expanded storage capacity, the NFA is preparing to step up its market intervention efforts as the harvest season progresses. The goal is to support farmgate prices – the price farmers receive for their crops – and maintain manageable buffer stocks to ensure food security. The DA is actively working to find a balance between ensuring profitability for farmers and affordability for consumers, a complex challenge in the Philippine rice market.
The success of this auction is a key component of the DA’s broader strategy to address food security concerns and stabilize rice prices. The agency continues to monitor market conditions and adjust its policies as needed to ensure a stable and affordable supply of rice for all Filipinos. For updates on NFA activities and DA initiatives, visit the Department of Agriculture website at da.gov.ph.
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