The National Food Authority (NFA) will auction off up to 60,000 metric tons (MT) of aging rice stocks as part of the government’s efforts to keep rice supply stable even during the implementation of the 60-day import ban.

Agriculture Secretary Francisco Tiu Laurel, who chairs the NFA Council, said the move also aims to prevent rice spoilage and free up vital warehouse space.

“We’re essentially hitting three birds with one stone: avoiding supply shortfalls, clearing space so NFA can buy more palay from local farmers, and preventing spoilage of aging rice,” Tiu Laurel said in a statement.

President Ferdinand “Bongbong” Marcos Jr. announced earlier that the country will suspend foreign rice purchases for 60 days in order to stabilize local prices, which have fallen below the production cost. The two-month import pause will begin on Monday, Sept. 1.

Tiu Laurel said the import suspension provides the government flexibility to act quickly to protect farmers and prevent oversupply with the upcoming wet season harvest.

In a report, the United States Department of Agriculture (USDA) projected that the country’s strong rice output may not be enough to meet the anticipated demand over the next two months.

The USDA said the Philippines imported over 750,000 MT of rice during mid-September to mid-November in the two previous years. It estimated that the import demand during the temporary ban period will be at “similar levels.”

The foreign agency also estimated that around 2.18 million MT of palay or unmilled rice will be harvested during the wet season harvest.

Buoyed by the projected strong harvest and the Department of Agriculture’s (DA) active monitoring of the rice situation, Malacañang assured consumers that the country’s rice supply will remain sufficient despite the import ban.

To ensure there is sufficient supply available for the public, NFA will provide government relief agencies the first opportunity to buy the rice stock next month.

The grains agency will then proceed with the public auction until October.

The auction will feature a graduated pricing scheme, with floor prices ranging from ₱27.96 to ₱25.01 per kilo, which will depend on how long the rice has been stored.

NFA can only auction off two-month-old rice or older. Rice stocks are considered aging starting the third month from milling.

NFA’s current rice buffer stock stands at 450,000 MT, enough to meet 12 days of national demand in case of emergencies.

The agency said the upcoming auction represents about 1.2 million sacks of rice, or about 13 percent of the total buffer.

“With harvest season approaching, NFA aims to strike a balance between market stability, warehouse efficiency, and farmer support,” it said.