Metro Manila (CNN Philippines, July 7) — The National Food Authority (NFA) did not meet the required national rice buffer stocking of 300,000 metric tons (MT) in 2022 despite a ₱7-billion subsidy from the government, according to the Commission on Audit’s (COA) latest report.
For the entire year, state auditors said the NFA only maintained a rice inventory of 140,354 MT on average, which is only good to last for about 4.18 days. This is far from the expected 9 days of supply if the 300,000 MT target was met.
\”The inability to maintain the optimum level of national rice buffer stocking requirement at any given time poses risk to the country’s food security in cases of calamity and emergency situations, or non-sustenance of the disaster relief programs of the government during natural or man-made calamities,\” COA stressed.
State auditors said among the possible reasons for the low buffer stock last year was the cut in NFA’s buying stations and mobile procurement teams from 598 in 2020 to 232 in 2022. The reduction was due to the agency’s restructuring program, they added.
COA also noted that the revocation of various incentives for farmers – such as the cooperative development incentive fund, delivery fee, and drying fee – could also be reasons for the low rice inventory.
\”The discontinuance of these incentives had somewhat negatively affected the motivation of farmers to sell their harvests to the government, as private traders offer various assistance to farmers, such as, consignment/advance payments, weighing of palay straight from the rice paddy, and free use of post-harvest facilities,\” COA said.
It added that NFA also inadequately disseminated its palay procurement program.
