Citing budget constraints, the National Food Authority (NFA) said its current buffer stock for rice is good for five days, just a third of the at least 15 days mandated by law.
But the agency said this is not an indication of the country’s rice supply security as private traders are now allowed to bring in both local and imported rice stocks.
Under the Rice Tariffication Law (RTL), the NFA’s role was diminished to maintain buffer stocking of rice from stocks sourced from local farmers to be used for calamities and emergencies.
Judy Carol Dansal, NF administrator, said in an interview last week under RTL, the NFA is still mandated to have a buffer stock of 15 to 30 days.
Dansal said NFA’s budget of around P7 billion for procurement is not enough to procure 15 to 30 days worth of rice.
NFA buys most of its rice from Soccsksargen, Calabarzon, Mimaropa and Cagayan Valley and sells the grain to the Department of Social Welfare and Development and local government units.
The Department of Finance (DOF) earlier said the NFA cut its net loss in 2021 to P9.6 billion following the implementation of the redefined functions of the agency under the RTL.
The NFA’s net loss dropped 37.8 percent from P15.44 billion in 2020.
The DOF added this net loss does not include the NFA’s subsidy support from the national government (NG) of P30.65 billion in 2020 and P7.46 billion in 2021, representing the conversion of NG advances into subsidy.
Meanwhile, former employees of the NFA have asked for the replacement of the agency’s leadership following the filing of at least three graft charges lodged with the Ombudsman and an administrative charge with the Civil Service Commission.
Maximo Torda, national president of NFA Employees Association (NFAEA), said in a statement Dansal violated the NFA procurement rules when she ordered the purchase of rice during a non-emergency situation, resulting in losses.
Torda alleged Dansal favored certain people in appointing key positions in the agency.
But in a separate statement, the NFA said it “does not recognize” Torda and other personnel as representatives of the agency’s union, citing their non-compliance to the requirements of election provided for under the NFAEA Constitution and their failure to represent at least 30 percent of the rank-and-file employees as required by law.
“It is clear that their grievances are deeply anchored on the implementation of the GCG (Governance Commission for GOCCs) approved NFA Restructuring Plan as a result of the enactment of (RTL). This is a matter already pending with the courts of law. We would like to leave it to competent judicial and executive bodies to determine the truthfulness of their claims and once and for all set the records straight,” the NFA said.
