In an attempt to bring down the prices of commercial rice in Davao City, National Food Authority administrator Jessup P. Navarro has ordered the holding of pilot market auctions using the Dutch auction system for market-based retailers.

Under the Dutch auction system, the NFA sets a specific price for rice that is being auctioned that the participating market-based retailers are bound to follow.

Navarro said 5,000 bags of imported Thailand rice will be auctioned every Thursday at a minimum bid price of P32 (US$0.73)/kg to be resold by retailers at a mark up not exceeding P3/kg. Each market-based retailer can only bid a maximum of 50 bags per week.

Posted: 06|17|08 at 6:38 am. Filed under: Asia.