SOP Library
SOP NO:
GM-PR19
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Area:
Grains Marketing (GM)
Activity:
Procurement (GM-PR)
Title:
SOP on the Swapping of NFA Rice Stocks with Palay Stocks of Farmers
Date Approved/Issued:
07/27/1998
Date Effective:
08/01/1998
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
1. Palay/Rice Swapping (PRS
)
Individual farmer or farmers’ organizations duly accredited by the NFA can deliver/deposit their stocks in paddy form at NFA designated delivery areas and withdraw the same in rice form in another area of their choice. The rate of conversion shall depend on the quality of paddy stocks delivered as well as the quality of rice that the Farmers’ Organization intends to withdraw.
2.
Program Availment
Aside from being accredited by NFA, individual farmers and FOs shall be required to first secure a rice retailer’s license from the NFA prior to the availment of the program.
3.
Area Coverage
This program shall be implemented nationwide.
4.
Stocks Acceptable for Swapping and Withdrawable Stocks
4.1 Only PGA- Purity A, PGA- Purity B. PGB- Purity A and PGB- Purity B varieties conforming with NFA procurement standards shall be acceptable for swapping.
4.2 NFA rice to be swapped shall be local or imported well - milled and regular - milled rice, or any available rice stocks. Milling of palay stocks to meet the quality demanded by beneficiary is, however, not allowed except when authorized by the Administrator.
5. Rate of Conversion/Swapping
The rate of conversion for palay deliveries to be swapped with rice, whether PGA or PGB, should be on a "volume for volume" basis considering the following milling recovery (MR) :
PURITY MR (%) RICE QUALITY
A 65 RMR
B 64 RMR
A 63 WMR
B 62 WMR
6. Transport Cost
6.1 A transport cost which is equivalent to 25% of the approved NFA rate of the receiving/delivery province shall be charged to the participating farmer/FO for every bag of withdrawable rice.
6.2 Computation for the payment of the 25% transport cost shall be undertaken by the concerned NFA Provincial Office. The computed cost shall be recommended by the Provincial Manager and approved by the Regional Manager.
6.3 The transport cost (TC) shall be paid in cash or in kind at the delivery areas only. Payment in kind of the TC shall be documented thru the WSR with the acronym “TC-PRS” indicated in the remarks portion. Payment in cash shall be documented through the Agency’s official receipt (O.R.)
If the Agency would accept payment in kind as payment for transport cost, valuation of our palay stocks according to specifications should be included.
7.
Filing and Approval of Application
7.1 Accredited and duly licensed FOs/Individual farmers intending to participate in the Program shall submit an accomplished
Application for Palay/Rice Swapping Program
(Exhibit 1)
in duplicate copies to the NFA Provincial Office in their area.
Copy 1 - Receiving Provincial Office (P.O.)
2 - Farmer’s Organization
7.2 The Extension and Business Development and Promotion Section (EBDPS) or the Marketing Operations Section (MOS) in the absence of EBPDS in the province shall process and recommend the approval/disapproval of the application to the Provincial Manager. Applications shall be acted on within two (2) days from date of filing.
7.3 The Provincial Manager of the receiving province shall have the authority to
approve/disapprove application of farmers/FOs to participate in the program.
8. Delivery of Grains
8.1 Minimum volume of palay stocks to be delivered under this program is 50 and 200 bags for individual farmers and FOs respectively.
8.2 Stocks shall be classified by NFA to ensure conformance with NFA procurement standards. The stocks delivered shall be rebagged at NFA designated warehouse using NFA sacks.
8.3 Acceptance and documentation of the delivery shall follow the usual warehousing procedures in grains receipt. Accountable forms to be used in the program shall indicate the acronym “PRSP” in the remarks portion of the same. The name of the farmer/FO and its representative shall likewise be indicated on the said comments.
8.4 The FO/Farmer upon delivery of the stocks and payment of TC shall attach the farmer’s copy of the WSR to the approved Application for PRSP and submit same to EBDPS/MOS for the issuance of the Palay/Rice Swapping Certificate (PRSC).
9.
Palay /Rice Swapping Certificate (PRSC)
9.1 The
Palay/Rice Swapping Certificate (PRSC-Exhibit 2)
is a certificate of delivery which entitles the holder to withdraw the equivalent rice stocks at designated NFA warehouse. It contains the quantity and specifications of stocks to be withdrawn.
9.2 The
PRSC
shall be issued to the Farmer/FOs upon delivery of stocks and payment of the corresponding transport cost. It is a negotiable instrument which can be endorsed up to three (3) times.
9.3 The last endorsee or the holder of the
PRSC
shall be considered the owner of the certificate and has the right to withdraw the stocks. The holder of the
PRSC
shall present this instrument to the NFA Provincial Office of the withdrawal area before withdrawing the rice stocks at designated NFA warehouse.
9.4 In case of lost certificate, FOs shall be required to submit to NFA an Affidavit of Loss and a Notice to Dishonor and Cancel
PRSC
. A new certificate will be issued only after verifying that same has not been served yet.
9.5 For control purposes, the
PRSC
shall have a serial number and the NFA Cashier shall be accountable to the said certificate.
9.6 The EBDPS/MOS shall maintain a logbook specifically for the purpose of monitoring the issuances of
PRSC
’s and other relevant information regarding the program.
10.
Withdrawal of Rice
10.1 Rice stocks may be withdrawn within five (5) days after actual delivery of palay within the region and within fifteen (15) days for inter-regional transaction. Unwithdrawn stocks after the said number of days shall be charged a storage fee and be subjected to re-scheduling of withdrawal based on availability of rice stocks. The storage fee shall be computed on a per bag per day basis, based on the prevailing NFA rate.
10.2 Rice stocks withdrawal in part or in whole shall be allowed. If partial withdrawal of rice stocks is allowed, the number of withdrawal shall depend upon the decision of the Provincial Manager taking into account , factors like warehousing and availability of rice stocks, subject to the approval of the Regional Manager.
10.3 The SGOO (WS II) shall indicate on the appropriate portion of the
PRSC
the records of actual withdrawal of rice.
10.4 The FO/
PRSC
holder shall present the
PRSC
to the NFA Provincial Office of the designated withdrawal area. The EBDPS/MOS shall check and verify the authenticity of the
PRSC
and shall prepare and issue an Authority to Issue (AI).
The selling price of swapped NFA rice stocks of the Farmers/FOs shall no longer be regulated. However, their stocks must be rebagged to be considered as commercial rice.
11.
Reporting and Monitoring System
11.1 The EBDPS/MOS of the receiving Provincial Office shall report Farmer/FO palay deliveries to withdrawal point and to DMO-OCD through
wire (Exhibit 3)
cc. BDPD. It shall indicate the following:
11.1.1
PRSC
No.
11.1.2 Date of Delivery
11.1.3 Name of Farmer/FO
11.1.4 Palay Delivered (Variety Code, Bags, kg)
11.1.5 Quantity Withdrawable (Variety Code, Bags, kg)
11.1.6 Withdrawal Point/Province
The receiving P.O. shall transmit this report every end of the day.
11.2 The withdrawal point shall report daily
wire (Exhibit 4)
to the DMO-OCD the following data on stocks withdrawal, cc: Delivery province:
11.2.1 Served
PRSC
11.2.2 Name of Farmer/FO
11.2.3 Receiving Province
11.2.4 Date of Actual Withdrawal
11.2.5 Charges Paid (TC/Storage Fee)
11.3 DMO shall closely monitor the Farmer/FOs delivery and withdrawal activities using the
Palay/Rice Swapping Program Monitoring Card
per province (Exhibit 5) for reconciliation purposes.
11.4 A
Monthly Report on Palay/Rice Swapping Program (Exhibit 6)
shall be prepared by DMO for submission to AO cc: DAS and BDPD and not later than the 7th of the succeeding month.
12.
Accounting Entries
12.1 To record receipt of palay deliveries of F.O.
RECEIVING PROVINCE
DR : Inventories - Palay xxx
CR : Depository Liabilities xxx
12.2 To record receipt of payment of Transport Cost (TC)
12.2.1 In-Kind
DR : Inventory-Items for Sale xxx
CR : Service Income TC-PRSP xxx
12.2.2 In Cash
DR : Cash-Collecting Officer xxx
CR : Service Income TC-PRSP xxx
12.3 To record Issuance of Rice to F.O
ISSUING PROVINCE
DR : ROCA / HOCA xxx
CR : Inventory-Items for sale - Rice xxx
RECEIVING PROVINCE
DR : Depository Liabilities xxx
CR : ROCA / HOCA xxx
DR/CR: Gain / Loss xxx xxx
III. RESPONSIBILITIES
IV. FLOW CHART
Top Page
EXHIBITS
Application for the Palay Rice Swapping Program
Palay/Rice Swapping
Wire Format-Palay/Rice Swapping (Exh.3)
Wire for Palay/Rice Swapping-Exh4
Palay/Rice Swapping Program Monitoring Card
Monthly Report on Palay/Rice Swapping Program