The National Food Authority (NFA) failed to meet anew the required rice buffer stock target in 2023, notwithstanding a whopping P9 billion in government subsidies, the Commission on Audit (CoA) discovered, raising doubts about its capability to ensure food security.

Audit findings showed that out of the required optimum level of 300,000 metric tons (MT) or equivalent to nine days of the average daily consumption requirement (DCR) at any given time of national rice buffer stock, the monthly average of NFA’s rice buffer stock was only 71,486 MT or equivalent to 2.10 days average DCR.

State auditors emphasized this is the second consecutive time that the NFA did not beat the target of 300,000 MT set forth by the NFA Council in February 2021, as it also flagged the same in 2022 with the NFA’s buffer stock only pegged at 111,000 to 182,000 MT.

The law mandates the NFA to ensure food security by maintaining an optimal level of rice buffer stock, with the palay shall be sourced from local farmers. 

Buffer stock refers to the optimal level of rice inventory that shall be maintained at any given time to be used for emergencies and to sustain the government’s disaster relief programs during calamities. 

Under the P5.3 trillion budget in 2023, the government allotted P9 billion in subsidy to the NFA to supplement the budgetary requirements for the buffer stocking program. The fund was intended to procure 495,000 MT of targeted palay given that only 78,419 MT of palay were procured during the year. 

“However, the Annual Report of the NFA for CY 2023 disclosed that the required buffer stock equivalent to nine days of the average DCR of 33,983.5 MT was not achieved the whole year round,” the auditing body said.

Review of the agency’s annual report revealed that despite the hefty P9 billion subsidy, the NFA only disbursed P1.492 billion to purchase 1,568,379 bags (78,419 MT) of palay or 15.84 percent of the targeted 9,900,000 bags of palay (495,000 MT) last year.

In addition, the CoA noted that the levels of rice inventory ranging from 43,635 MT to 104,788 MT, which was only good for 1.28 to 3.08 days, were below the required buffer stocks. On the monthly average, the NFA maintained a rice inventory of 71,486 MT, good to last for about 2.10 days supply only.

“The issue [of] the inability of the NFA to maintain the optimum level of national rice buffer stocking requirement of 300,000 MT at any given time if not promptly addressed, poses [a] risk that the agency might not be able to fulfill its mandated role to ensure food security,” the CoA lamented.

The NFA attributed the low procurement of palay due to stiff competition and aggressiveness of private traders, quality issues of palay, lack of post-harvest facilities, and high demand for rice by major rice importing countries, among others. 

Nevertheless, the NFA committed to exert “all efforts to sufficiently maintain the required 300,000 MT rice buffer stock. 

CoA, however, warned that they will keep a close eye on this pledge this year and subsequent audits.