SOP Library
SOP NO:
GM-GO07
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Title:
Price Reduction of Cereals, Feedgrains and By-Production
Date Approved/Issued:
03/17/1987
Date Effective:
04/01/1987
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
1.
Stocks Covered
1.1 The folowing stocks may be sold thru price reduction :
a.) Reconditioned stocks in which all efforts to dispose it at regular selling price were proven futile.
b.) Unreconditioned ("as is") partially damaged stocks which may still be used in its original form or use (e.g. rice for human consumption or feedgrains as animal feeds).
c.) Demaged grains stocks of rice and white corn grits reclassified as animal feeds. This shall no longer be covered by I.I. report.
2.
Reduced Selling Price
2.1 A provincial Committe primarily responsible in determining the recommended reduced selling price shall be created to be composed of the following :
Chairman - Provincial Manager
Members - Provincial Opertions Officer
- Provincial Economist
- Provincial Acountant
- Provincial SQAO
2.2 A Regional Committee responsible in the evalution of requests for price reduction shall likewise be created to be composed of the following:
Chairman - Assistant Regional Director
Members - Regional Operations Officer
- Regional Economist
- Regional Accountant
- Regional SQAO
2.3 The following factors shall be considered in determining/evaluating the recommended reduced selling prices:
a.) Supply and demand condition
b.) break-even cost inclusive of overhead cost
c.) prevailing market price (within and outside the area)
d.) canvass of offers
e.) Laboratory analysis (extent of damage)
3.
Approval
3.1 Request for price reduction of stocks (including by-products) to be disposed as originally intended and whose recommended reduced selling prices are at or above the break-even total cost to sell shall be endorsed to the Regional Director for evaluation and approval.
3.2 Request for price reduction of stocks with reduced selling prices below the break-even total cost to sell shall be wired to the Regional Office for preliminary evalution.
The request shall be endorsed by the Regional Office to DMO together with all supproting documents for recommenedation to the Administrator for approval.
For by-products, however, price reduction shall be approved by the Director for Grains Marketing Operations.
3.3 All selling price reduction request for approval by the Administrator shall pass through the Assitant Administrator for Stabilization and the Deputy Administrator for Corporate Affairs for further recommendation.
4.
Wire Request
4.1 To facilitate actions on price reduction, wire request shall contaiin the following data needed for evaluation:
a.) commodity/variety
b.) recommended reduced selling price (with cost computation)
c.) original selling price
d.) market outlet
e.) quality and age of stocks
f.) laboratory analysis (with extent of damage)
g.) quantity in bags and equivalent gross weight in kilos
h.) book value inclusive of overhead cost
i.) name of warehouse whrer stocks are being stoerd
j.) canvass of prevailing prices of commercial stocks in the locality conducted from at least 5 wholesalers and10retailers
k.) canvass of prices offer for the stocks from at least 10 buyers in the province including quantitiy each buyers would purchase, A number of less than 10 interested would be adequate provided that the recommending office has proven to have exhausted all possible outlets.
4.2 In order to speed up the processing of request, the Provincial Manager/OIC shall double check the wire request to make sure needed data are complete. Wire request with insufficient data shall not be processed until same has been fully complied with.
4.3 Upon transmittal of the wire request for price reduction, the Provincial Office concerned shall send the original copies of the accomplished canvass sheets, laboratory analysis results and/or sample of the stocks, if necessary for reanalysis to the Regional/DMO.
4.4 In extreme cases when the stocks are in deteriorating state, further laboratory analysis is vital to determine its edibility for human consumption. Thus a sample shall be required by DMO for chemical analysis at TRDD laboraroty.
5.
Selling Price Bulletin
Upon approval of price reduction, a memorandum/Bulletin on Seling Price shall be issued by the Administrator/Regional Director for proper documentation of price specificially for the particular stocks.
6.
Reporting
6.1 The Regional Office shall wire the Directorate for Marketing Operations attention. OPD all reduced selling prices with the corresponding volume and effectivity dates approved by the Regional Director. Reporting shall be effected immediately upon the approval of price reduction request.
6.2 A "Monthly Sales Report" on sotcks sold at reduced prices shall be submitted to the Regional Office and to DMO attention OPD by the concerned Provincial Office. However, the sales shall still be included in the weekly totla report being submitted to DMO.
III. RESPONSIBILITIES
IV. FLOW CHART
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