SOP Library
SOP NO:
GM-DN02
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Title:
General Guidelines on Flour Distribution by the Private Sector
Date Approved/Issued:
06/26/1985
Date Effective:
06/26/1985
Digest:
I. TERMS OF REFERENCE
A. Rationale
B. Objective
C. Scope
D. Basis
II. IMPLEMENTING GUIDELINES
1. The private sector shall undertake flour distribution under the following conditions :
1.1. That there is normal supply of wheat and flour; and
1.2. That market flow is shortened to the most reasonable minimum level.
1.2.1. Only NFA licensed flour dealer shall be authorized to engage in the resale of flour.
1.2.2. Associations and Cooperatives organized by flour end-users and with juridical personality may engage in flour resale provided they are first licensed as dealers by NFA. The same terms and conditions of sale granted by flourmillers to their own dealers shall be given to the said associations and cooperatives.
2. A National Wheatflour Committee to be composed of one (1) representative each from the bakers, noodle manufacturers, biscuit manufacturers, flourmillers, and dealers groups, NEDA, MTI and NFA shall be created and vested with the following functions :
a. Ascertaining normalcy/abnormalcy of supply.
b. Monitoring of prevailing market prices to ensure that these are within reasonable levels.
2.1. The NFA representative shall act as Chairman of the Committee.
2.2. The Committee shall hold meetings upon the request of any of its members. Such request shall be coursed thru the National Food Authority who shall notify all members.
3.
Mechanics of Transition
3.1. The NFA shall transfer the distribution of flour to the private sector starting July 1, 1985.
3.2. In the interim, the NFA shall still undertake the distribution of flour to dispose of its inventory. In areas where NFA has undisposed stocks as of July 1, 1985, the flourmillers shall hold distribution of flour until said stocks have been disposed of.
3.3. Further, in the abovementioned areas, duly-licensed dealers shall be allowed to position flour stocks five (5) days prior to the conclusion of NFA flour distribution activities. The dealers in said areas shall coordinate accordingly with NFA for the actual date of stock positioning.
4.
Government Intervention
4.1. The government through the NFA shall intervene when any of the following conditions exists :
4.1.1. There is abnormalcy of wheat and/or flour supply.
4.1.2. Occurence of widespread hoarding as established by NFA.
4.1.3. Flour prices go beyond reasonable levels.
4.1.4. There exists a state of emergency/calamity as declared by the President.
4.2. NFA intervention may come in any of the following forms :
4.2.1. For locally processed flour :
a. The NFA shall allocate mill outputs to particular distribution areas.
b. The NFA shall accredit and assign additional dealers per pre-determined distribution area.
c. The NFA shall undertake actual physical distribution.
4.2.2. The NFA shall import flour and distribute the same.
4.3. NFA intervention shall be effected in places where any of the above conditions for intervention is in existence.
III. RESPONSIBILITIES
IV. FLOW CHART
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