NFA Sees Lower Costs, Faster Handling With One-Ton Bags in Palay Pilot
Key Takeaways
- •The NFA's pilot test using one-ton tonner bags reduced palay handling time by 75% and handling costs by 50% compared with traditional 50-kilogram sacks.
- •The pilot, launched in October last year, operates at NFA branches in Nueva Ecija, Occidental Mindoro, and Davao del Sur, with each tonner bag holding the equivalent of twenty 50-kg sacks.
- •Agriculture Secretary Francisco P. Tiu Laurel Jr. said the savings could let the NFA procure more palay from farmers at fair market prices using the same resources.
- •NFA findings showed the tonner bags kept moisture within safe limits and produced minimal spillage, but fumigation standardization, bag compression and strength testing, and bulk-storage pest control still need to be addressed.
- •NFA Administrator Larry R. Lacson inspected the pilot at the triplex warehouse in Davao del Sur, covering receiving, weighing, handling, and stacking while excluding milling and distribution.

MANILA — The National Food Authority (NFA) said a pilot test using one-ton bags in place of the traditional 50-kilogram sacks has significantly cut the time and cost of handling palay, the local term for unmilled rice, adding that the system could speed up procurement, improve warehouse efficiency and free up funds to buy more palay.
"Our pilot test showed a 75% reduction in handling time and a 50% cut in handling costs. Work that used to take an hour can now be completed in just 15 minutes, while handling costs are halved. Using tonner bags also allows us to make better use of warehouse space," NFA Administrator Larry R. Lacson said in a statement.
The NFA is the Philippine government's grain procurement agency under the Department of Agriculture, tasked with buying palay from local farmers to maintain the country's rice buffer stock for food security — a reserve intended for use during calamities and emergencies. Rice is the staple food of the Philippines, making efficient procurement and storage a long-standing policy concern.
Launched in October last year, the pilot project deploys flexible intermediate bulk containers — known as "tonner bags" — at NFA branches in Nueva Ecija, Occidental Mindoro, and Davao del Sur. The containers, widely used elsewhere for moving dry bulk goods, are being evaluated as a possible alternative to the 50-kg sacks traditionally used for palay handling; each tonner bag carries the equivalent of twenty of those sacks.
Agriculture Secretary Francisco P. Tiu Laurel Jr., who chairs the NFA Council, said the savings generated could ultimately flow back to rice farmers.
"For our rice farmers, this means we can potentially procure more palay with the same resources. If we can lower handling costs and use our warehouses more efficiently, more of the NFA's resources can go toward buying palay at a fair market price from our farmers," he said.
Mr. Lacson last week inspected the pilot system at the NFA's triplex warehouse in Davao del Sur. The inspection covered the receiving, weighing, handling, and stacking of the tonner bags, but excluded milling and distribution.
"This is part of our efforts to ensure that our stocks are food-safe and to make NFA operations more efficient and modern," Mr. Lacson said.
According to the NFA's findings, the tonner bags maintained moisture levels within safe limits and palay spillage was minimal. The agency nevertheless identified areas needing further work, including standardizing fumigation procedures for bulk stacks, testing the bags' compression and strength, and developing pest-control measures suited to bulk storage.
Those unresolved items now form the checklist between the three pilot sites and any wider rollout. The NFA said it would continue to refine the system ahead of possible broader implementation.
— Maria Mikaela H. Tormon, BusinessWorld
Source: NFA sees lower costs, faster handling with one-ton bags, BusinessWorld, November 1, 2026.