NFA commended for ‘near-optimal’ rice buffer stock

The National Food Authority (NFA) has received a rare commendation from the Commission on Audit (COA) for effectively maintaining a “near-optimal” national rice buffer stock, the Department of Agriculture (DA) announced on Friday.

In its latest Audit Observation Memorandum (AOM), COA praised the NFA’s improved inventory management practices, highlighting the agency’s success in achieving the mandated 300,000 metric tons (MT) rice buffer stock through a series of strategic reforms. These included the implementation of the Price Range Scheme, or PRICERS, which COA described as an “innovative” approach to rice procurement.

Under PRICERS, local farmers were able to sell clean and dry palay to the NFA at rates ranging from PHP23 to PHP30 per kilogram, while fresh and wet palay were bought for PHP17 to PHP23 per kilogram. This strategy enabled the NFA to procure 90% of its 2024 target of 495,000 MT.

“We commend the management in maintaining the required buffer stock to an almost optimal level of rice inventory that significantly mitigated the risk of not meeting the country’s food security in cases of calamity and emergencies,” the COA noted.

NFA Administrator Larry Lacson welcomed the recognition and reaffirmed the agency’s commitment to supporting Filipino farmers and ensuring national food security. “We aim to sustain our aggressive palay procurement, especially in areas where palay prices are low, and will soon complete repairs of 134 warehouses, which will allow us to buy even more palay at fair prices,” he said.

Agriculture Secretary Francisco Tiu Laurel Jr. likewise thanked COA for its commendation, calling it “a strong vote of confidence in our efforts to ensure farmers earn fair returns for their hard work as well as ensuring sufficient rice supply.”