The Commission on Audit (COA) has flagged the National Food Authority (NFA) for incurring a ₱5 billion loss after selling over 13 million bags of rice at ₱25 per kilo instead of the standard ₱33 per kilo from 2019 to 2023.
The NFA explained that the discounted price was due to concerns over the rice nearing staleness. However, COA criticized the sales, citing the Rice Tariffication Law, which prohibits the agency from retailing rice.
State auditors also pointed out that the NFA failed to meet its buffer stock mandate in 2023. Despite receiving a ₱9 billion subsidy, the agency only spent ₱1.5 billion on palay procurement, achieving just 15.84% of its target. The resulting rice buffer stock equated to only 2.1 days of supply, far below the required nine days.
The NFA attributed the shortfall to aggressive private traders, high palay prices, quality issues, and a lack of post-harvest facilities. Meanwhile, advocacy group SINAG criticized the agency for not intervening in areas where palay prices were lower.
The NFA has pledged to follow COA’s recommendations and maintain a 300,000 metric ton buffer stock. It also plans to implement new guidelines on rice pricing and inventory management to prevent future losses.
In March, 139 NFA officials were suspended for their involvement in low-priced rice sales, further spotlighting the agency’s operational challenges.
