NFA to Cut Costs with New Policy Allowing Farmers’ Own Sacks for Palay Procurement

The National Food Authority (NFA) has initiated a pilot test to stop re-bagging sacks of palay, or unhusked rice, procured from local farmers. This move, which could significantly reduce operational costs, allows farmers to use their own sacks, provided they are new or in good condition.

NFA acting Administrator Larry Lacson explained that the trial will cover about 20% of the 6.4 million 50-kilo bags targeted for procurement during the wet season. The change could save the NFA approximately PHP 27.4 million in the fourth quarter alone. If successful, the NFA plans to expand this to 90% of procurement next year, potentially saving PHP 215.5 million, which could be redirected to purchase additional palay.

Lacson noted that the decision came after consultations with farmers, who supported the shift as it reduces their handling time and costs. Under the Rice Tariffication Law, the NFA must maintain a buffer stock sourced solely from local farmers, without importing rice.