SOP Library
SOP NO:
GM-DN08
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Area:
Grains Marketing (GM)
Activity:
Distribution (GM-DN)
Title:
Rice and Corngrits Distribution and Retailing Policies and Procedures
Date Approved/Issued:
04/20/1993
Date Effective:
06/01/1993
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
A.
Distribution Scheme
Distribution may be categorized into two (2) activities namely distribution thru marketing outlets and distribution direct to and consumers. The National Food Authority (NFA) shall resort to different distribution scheme as maybe applicable for a particular situation in a given place for a specific period of time. It shall be part of the agency's strategy towards market stabilization in response to the ever changing prices and volume of grain supply and demand. The approving authority for the implementation of a particular scheme shall be the Administrator upon the recommendation of the Director for Marketing Operations and Assistant Administrator for Stabilization. The following are some of the distribution schemes which may be resorted to by the Agency from time to time.
1. Regular Distribution Scheme
These are selling strategies which are regularly implemented at any time of the year, and which do not require prior and/or specific approval of the Administrator except for his issuance of a Selling Price Bulletin (SPB).
1.1 Cash sale to accredited Retailers. This is the regular distribution scheme wherein grains are sold to accredited retailers based on authorized price ceiling and quota.
1.2 Cash sale to government offices and private institution based on the NFA existing release price and allocation. This scheme is resortedd to as a support to government programs in times of disasters, storm, etc. and/or as added benefits for employees of other government agencies. Private institutions are granted grains only if the request is approved by NFA. It shall be supported by either of the following documents:
a) Purchase Order (PO) signed by head of the purchasing institution.
b) Deed of Undertaking that such purchase shall be used only for relief operation, socio-civic project/programs or employees consumption.
1.3 Institutionalized Distribution Program. This program shall use cooperatives or any marketing arm accredited by NFA to sell NFA rice and corngrits at the prescribed price ceiling . (e.g. Bigasang Bayan)
2. Special Distribution Scheme
These are selling strategies which are implemented on a case to case basis depending on the prevailing situation.
2.1 These special distribution scheme require prior and specific authority from the Administrator as to the cereal type, price, market outlets, area, duration, scheme, etc.
a. Mobile Sales Direct to Retailers. A distribution scheme wherein stocks sold to retailers is readily available on rolling stores.
b. Cash sales to employees. To avoid deterioration of surplus stocks, NFA employees are allowed to purchase rice from NFA subject to volume restrictions.
c. Cash sales thru PNB. This is a payment scheme designed to minimize risk on the part of the retailer who shll purchase and withdraw stocks from a distant warehouse.
d. Sale of Rice on Credit. This scheme provides credit assistance to boost the retailer's capitalization. It only applies iif there is an excess in rice stocks. It shall be supported by a Memorandum of Agreement and established collaterals as approved by the Administrator.
e. Sale on Consignment to Institutions. A scheme wherein NFA and any private or government institution agrees to distribute stocks to be paid when the stocks are sold. It shall be supported by a Memorandum of Agreement and established collaterals as approved by the Administrator.
f. Open Sale. Stocks are sold in large volumes regardless of the allocation assigned to wholesaler and retailers.
g. Mill Buy Scheme. This may be resorted to only when there are excess stocks scheduled for milling wherein the miller is given the option to buy the miller recoveries.
2.2 This special distribution scheme requires approval at the level of the Regional Director.
a. Mobile Sales Direct to and Consumers. This scheme is used during lean months and to areas where there is an irregular supply of rice.
B. General Policies
1. Locally procured stocks are initially intended to remain in the province to meet the stock requirements of the province where it was procured. These are earmarked for distribution during lean months of supply.
2. First come first serve policy for sale of stocks shall be followed.
3. Sale of rice & corngrits on TITO basis shall be strictly prohibited.
C. Qualified Buyers
1. Sale and distribution of NFA rice and corngrits shall be made available only to outlets indicated in the Selling Price Bulletin (SPB) recognized by NFA under a system of accreditation as may hereafter be provided for, except only when a back-up distribution scheme is resorted to as may be determined by NFA, only those retailers who have been licensed by NFA and engaged in the business for two (2) years shall be considered for accreditation.
2. Qualifications for a retailer's accreditation shall be based on existing policies or guidelines that maybe issued by the Directorate for Marketing Operations (DMO).
3. In the event of a stepped-up distribution system and market involvement, as well as when there is surplus of stocks, all licensed grains retailers, and other outlets irrespective of affiliation/membership with any association may be allowed to purchase NFA rice and corgrits depending upon the discretion of the Administrator. Guidelines to this effect shall be issued by DMO from time time.
D. Allocation System
1. Quantity
1.1 As basis for determining the quantity that shall be sold to retailers, a weekly allocation per retailer shall be set. NFA P.O.s shall determine the weekly allocation based on the following:
a. Projected rice and corngrits requirement per area
b. Existing stock inventory
c. Retailers declared capitalization
d. Storage space
1.2 The weekly allocaiton shall be primarily based on the retailer's declared capitalization, computed as follows:
Capitalization Per Retailer
------------------------------------
Selling Price of Cereal
Where:
Capitalization - is the amount of capital per type of grain declared in the license applied for.
Selling Price of Cereal - is the NFA prevailing selling price of the variety of cereal that the retailer is buying.
1.3 As a general rule, the maximum quantity of stocks that a retailer can buy shall be equal to his weekly allocation except for periods when the volume of NFA stocks are low. Under such situations, the volume of stocks shall be allocated in proportion to each retailer's allocation.
1.3.1 Increase in the capitalization of accredited retailers shall not be used as basis in the computation of the allocation. Said increase shall only be considered after two years for NFA's assurance that said retailers are already established in their business.
1.4 In the event of a stepped-up distribution system as discussed in item II. C.3, the allocation of the accredited retailers shall be more than that of the other retailers at a quantity to be determined by the provincial office concerned.
1.5 The NFA shall control its rice and corngrits sales/market injection if the prevailing market price is being the trigger price.
2.
Retailer's Passbook
(RP)
2.1 The Accredited retailers shall accomplish a
Retailers Information Sheet
(RIS - Exhibit 1) and submit two 1" x 1" pictures of the owner and representative and a Special Power of Attorney for the authorized representative to the Registration and Licensing Section (RLS).
2.2 Based on the RIS, a RP (Exhibit 2) shall be issued in the name of the retailer whose name appears on the NFA grains license. It shall be signed by the Provincial Manager. A minimal fee shall be charged to defray cost of printing of RPs. Printing of RP shall be centralized.
2.2.1 All entries in the RP pertaining to personal/business data shall be handwritten by the RLs personnel.
2.3 The RP shall be presented by the retailer/authorized representative everytime a purchase/withdrawal is made or when demanded during inspection of NFA's Provincial Investigator (Sr. Enforcement and Investigation Officer).
2.4 The Record of Purchase/Withdrawals portion of the BP in which a column for the date, variety are provided shall be filled-up by Marketing Operations Section (MOS). Likewise, the amount and OR No. column shall be filled-up by the Cashier whenever payment by retailers of rice/corngrits allocation is made.
2.4.1 Alll columns for the data provided in the Record of Withdrawals portion of the RP shall be filled-up by the Warehouse Supervisor (Sr. GOO) everytime a withdrawal is made.
2.5 All UPs shall be revalidated yearly before the peak months of distribution. The word 'REVALIDATED" shall be stamped immediately after the last entry of the previous purchase/withdrawal is made. It shall indicate the date of the revalidation and the signature of the Provincial RLO (Sr. GOO).
2.5.1 No payment/withdrawal shall be accepted by NFA using RPs which have not been revalidated.
2.6 Mutilated and filled-up RPs shall be marked 'CANCELLED" and surrendered to the RLS. Accordingly, a replacement shall be issued for this purpose.
2.6.1 Lost PPs shall be reported immediately to the NFA-RLS thru the submission of notarized Affidavit of Loss. Replacement of the said RPs shall depend on the validity of circumstances surrounding the loss.
2.7 Unauthorized alteration of the entries in the RP or any substitution of opicture/s shall be a ground for the immediate cancellation/revocation of the RP.
2.7.1 Any violation or infraction enumerated in the Reminder Portion (Exhibit 2) of the RP and other pertinent provisions under P.D. No. 4 as amended and SOP, memoranda, circulars, etc. shall be a ground for the revocation of the RP notwithstanding the imposition of other penalties prescribed by NFA rules and regulations if evidence so warrants.
2.8 An index card per RP shall be maintained by the MOS. It shall contain all information on the RP including transaction details which shall be updated everytime purchases are made. It shall be filed sequentially per cereal type based on the RP number.
2.9 The RLS shall determine the number of RPs for printing based on existing accredited grains retailers/institutions. For purposes of control, the RP shall be pre-numbered. Numbering of the RP shall be as follows:
AA - XX YY - 0001
' '
' ' ' ------- sequential numbering of RP
' '
' '
' '---------------- region and province of issue based on NFA
' geographical codes
'
'------------------------------------- cereal type (i.3. RC for rice and CT for corngrits)
2.10 NFA dry seal shall be affixed in the RPs which shall cover part of the pasted ID pictures to easily determine substitution of pictures.
2.11 The date of the issuance of the RP shall be indicated/stamped in the first page containing the personal/business date.
2.12 A retailer shall be issued only one (1) RP for both, main and branch stall.
3. Allocations shall not be cumulative, i.e. weekly allocation or the balance thereof not availed of during the previous week shall not be added to the current week but shall be forfeited.
4. The allocation of apprehended retailers shall be witheld ubnless cleared from any violation/case by the Enforcement and Investigation.
5. Where a grains businessman is licensed for retailing and other lines of activity like wholesaling, the final determination of whether or not be he is entitled to allocation shall be at the discretion of the PO.
E. Pricing
1.
The DMO
shall prepare the SPB. It shall forward the same to the Administrator's Office for approval thru the Assistant Administrator for Stabilization and Deputy Administrator's Office.
2. Upon
approval
of the SPB by the Administrator, the DMO shall disseminate same to all Field Offices concerned.
F. Payment and Withdrawal
1. The RP shall always be presented everytime purchases are made. Only RP presented by the retailer or their authorized representative shall be honored by the NFA P.O., that is, from serving the Authority to Accept Payment (AAP) up to the withdrawal of stocks. The AAP shall be prenumbered by the P.O. Copy distribution shall be follows:
a. Accounting
b. Buyer
c. File P.O.
2. Retailers interested to purchase their grain requirements in the area shall coordinate with the Provincial Operations Officer for the preparation of the AAP. The POO shall secure the approval of PM/OIC on the AAP.
3. The field office shall ensure that the AAP is paid within the day of preparation. AAP not paid on the date of preparation shall be automatically invalidated/cancelled. It shall not be honored by the Cashier when payment is made.
4. Payment shall be made at the NFA cashier based on the AAP on cash basis or manager's/cashier's check. An Official Receipt (OR) shall be issued to document the payment made. All manager's/cashier's checks must be cleared from the concerned bank prior to the issuance of stocks.
5. An Authority to Issue (AI) prepared by the POO and approved by the PM/OIC shall be issued to the buyer. It shall indicate the designated warehouse where allocation withdrawals shall be made.
6. Buyers shall be required to withdraw all their stock purchase within a specified number of working days after the issuance of AI. Initial withdrawal shall be made immediately on the following working day reckoned from the date of AI. Failure of the buyer to withdraw stocks within schedule for reasons not atributable to NFA shall subject the buyer to pay a corresponding storage fee of P0.50/bag/day. The Warehouse Supervisor shall monitor the date/s of withdrawal thru the Warehouse Stock Issue (WSI) and shall withold issuances pending the payment of storate fees.
6.1 Withdrawal of stocks by buyer shall commence not later than the first working day after issuance of AI. STock purchase of 500 bags and below shall be withdrawn in one day. For purchases above 500 bags, withdrawal shall be at least 500 bags per day per buyer and shall be done in successive working days untill all stock purchases hae been withdrawn. It shall be the look out of the PM to ensure the smooth and efficient withdrawal operation in his province.
7. The RP and index card shall be regularly updated based on the transaction documents.
G. Monitoring and Reporting System
1. A Monthly Grains Distribution Status Report (PORO DIST-01-187) shall be submitted by the P.O. to the R.O. It shall cover information on kind of grains sold, quantity, variety and monetary equivalent.
2. A Monthly Distribution Performance Report (ROCP)-OPER-05-05.2-092) shall be submitted by the Regional Office to DCP/DMO. It shall cover actual volume of grains moved, value and rate of accomplishment against pre-set targets.
3. The NFA Provincial Office shall send to DMO a daily wire report on rice and corngrits sales specifiying quantity issued and existing corn inventory available for sale.
III. RESPONSIBILITIES
IV. FLOW CHART
Top Page
EXHIBITS
Retailer's Information Sheet
Retailer's Passbook