Farmer Groups Challenge Legality of NFA Plan to Sell Ageing Rice Stocks
Key Takeaways
- •The FFF and Magsasaka Party-list contend that much of the NFA's rice stock may exceed the age limits set by Republic Act No. 12078, which allows auctions only of rice up to three months old and palay up to six months old.
- •The NFA plans to auction about 37,000 MT of older rice valued at P1.18 billion to free warehouse space for at least 50,000 MT of wet-season palay.
- •Two previous public auctions failed, with the first disposing of only P65 million worth of stock before the remainder was sold through negotiated sale.
- •NFA Administrator Larry Lacson said clearing the old rice would free about 6.8% of warehouse capacity, and the agency is seeking additional storage beyond its current 65 warehouses.
- •Since the 2019 rice trade liberalization law, the NFA's mandate has been limited to maintaining the national buffer stock through local palay procurement.
The Federation of Free Farmers (FFF) and the Magsasaka Party-list have questioned the legality of the National Food Authority’s (NFA) plan to sell roughly 35,000 metric tons (MT) of ageing milled rice valued at P1.18 billion, arguing that much of the grain inventory may be too old to dispose of under existing law.
The two groups cited Republic Act No. 12078, which sets the age limits for auctioning NFA rice and palay (unmilled rice) stock at three months and six months, respectively. Based on information from their local chapters, they said a large portion of NFA stocks may already be more than 12 months old.
The dispute comes as the NFA operates under a redefined mandate following the rice trade liberalization law of 2019 (Republic Act No. 11203), which stripped the agency of its licensing and regulatory powers over rice imports and limited its role to maintaining the country’s buffer stock, primarily through local palay procurement from farmers.
In a joint statement, the FFF and the Magsasaka Party-list also noted that two earlier public auctions for the NFA’s rice stocks failed, leaving the agency struggling to decongest its storage facilities ahead of procurement of the wet-season palay harvest.
After the first auction, the NFA successfully disposed of only P65 million worth of the rice stocks valued at P1.18 billion. The remaining stocks were sold through negotiated sale.
“The agency must also make sure that its ageing rice is fit for human or animal consumption,” the groups said.
For its part, the NFA has said it will auction around 37,000 MT of older rice to make room for at least 50,000 MT of palay harvested during the wet season, and to meet legal requirements before the stock becomes unfit for human consumption.
NFA Administrator Larry R. Lacson said clearing out the older rice will free up around 6.8% of warehouse space in time for the incoming harvest. He added that the agency is still seeking additional warehouse space for lease or temporary use, on top of the 65 warehouses currently in its network. — Marron Joshua F. Mendoza
