NFA cuts costs by halting palay 'rebagging'

The National Food Authority (NFA) announced on Thursday that it will no longer rebag palay (unhusked rice) sourced from local farmers, a move aimed at reducing costs and increasing rice purchases.

NFA Administrator Larry Lacson said the agency had decided to allow farmers to sell their rice in their own sacks after receiving feedback from various farmer groups nationwide. The rebagging process had been slowing down the sale of farmers' rice.

For the current wet season harvest, the government plans to purchase over 20 percent, or around 1.3 million bags, of palay bagged by farmers out of its total target of 6.4 million 50-kilo bags.

"By eliminating rebagging, the NFA will save money on handling costs and can use those savings to buy more palay," Lacson said.

"This move is expected to generate P215 million in potential savings, which can be used to purchase an additional 7,700 metric tons of palay at an average price of P28 per kilo," he added.

The decision to stop rebagging was finalized at the agency's national planning conference held in Dumaguete City last September.