MANILA — State auditors said the National Food Authority (NFA) failed to meet the optimum level of national rice buffer stocking requirement of 300,000 metric tons last year, despite full receipt of P7 billion in government subsidy.

The Commission on Audit (COA) said in a 2022 audit report on the NFA that there was a shortfall of 177,349 metric tons or 36.95 percent of the target palay procurement of 480,000 metric tons.

“The inability to maintain the required optimum level of national rice buffer stocking at any given time poses risk that NFA might not be able to effectively and immediately respond and provide the needs of the beneficiaries all over the country in times of emergency situations, and non-sustenance of the disaster relief programs of the government during natural or man-made calamities,” the audit team said.

The audit team said that despite receipt of P7 billion government subsidy, only P5.75 billion was disbursed for the 302,651 metric tons of procured palay.

The audit report stated that there were limited palay buying stations and mobile procurement teams in areas with surplus stock during harvest season.

“This program addresses the difficulty of farmers in transporting their harvest to the NFA efficiently at no cost as the mobile procurement teams shall pick up the farmer’s harvest in the agreed place and schedule, free of charge,” the audit team noted.

The audit team said the NFA management should intensify its information dissemination on palay procurement activities at the start of the cropping season, increase mobile procurement teams, and provide assistance and additional incentives to farmers and encourage them to sell to the NFA.

“Management fully conformed to all the audit recommendations and committed to continuously exert all efforts possible to be able to sufficiently maintain the required 300,000 metric ton government rice buffer stock to ensure the country’s food security concerns,” the audit team noted.

NFA Administrator Roderico Bioco received a copy of the report on June 30, 2023.

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