The National Food Authority (NFA) said it will start pilot testing the acceptance of palay (unmilled rice) bagged by farmers in new and good secondhand sacks, a measure that could save millions of pesos.
NFA administrator Larry Lacson said the savings could be channeled to buying more palay for buffer stocking and boosting farmers’ incomes.
“At 20 percent of 6.4 million bags of procurement target during the main cropping season, NFA will save around P27.4 million in the fourth quarter alone in terms of the cost of new sacks and warehouse handling,” he said.
The NFA said the pilot test would cover 20 percent of the target 6.4 million 50-kilogram bags of palay.
Lacson said that if the pilot testing succeeds, the agency would implement it next year with up to 90 percent of palay to be procured and allowed to be bagged in farmers’ sacks.
“At 90 percent of procurement target of 10.9 million bags of palay next year, we could save around P215.5 million, an amount the NFA could use to buy an additional 7,700 metric tons of palay at an average price of P28 a kilo,” he said.
The NFA decided to accept palay in farmers’ sacks during various consultations with farmers nationwide.
