SOP Library
SOP NO:
GM-DN07
(List of Exhibits/Attachments)
Mission
:
Technical Support Services
Area:
Grains Marketing (GM)
Title:
Corngrains Distribution 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 of corn shall be direct to corn users accredited by the National Food Authority (NFA). The NFA shall resort to different distribution schemes as may be 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 stablization in response to the ever-changing price 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 Stablization.
B. General Policies
1. Sale of white corn shall be primarily for human consumption and yellow corn for feeds purposes only.
2. The extent of yellow corn sales shall be limited to existing available supply/inventory.
C. Qualified Buyers
1. Sale shall be open to all Poultry and Hog Raisers/Feedmillers (PHRs/FMs) who are currently registered with NFA.
D. Allocation
1. PHRs/FMs interested to purhase corn shall submit their monthly corn requirements to the NFA Provincial Office (P.O.) where they are registered. Upon submission of the requirements, the P.O. shall determine whether the PHRs/FMs are registered with NFA and shall be responsible for the following:
1.1 In case of FMs, conduct inspection of the farm/feedmill/hammermill/feed mixing facilities to verify capacity and if it is operational prior to issuance of allocation.
1.2 In case of PHRs, computation of the monthly allocation based on the latest inspection using the allocation formular for corn. (see exhibit 1). Only PHRs with hammermill/feed mixing facilities shall be considered in the allocation.
2, For other distribution scheme, the allocation quantity to be sold to PHRs/FMs shall be based on the guidelines prepared by DMO.
3. In case of short supply of yellow corngrits, white corngrains can be sold to PHRs/FMs for feeds. However, since white corngrains is intended for human consumption, sale to PHRs/FMs as feeds shall only be allowed after considering local and inter-provincial/regional requirements for white corngrains/grits as food.
4. In case of non-availability or short supply of corn in the area, the P.O. may endorse interested PHRs/FMs who want to avail of an allocation from another NFA office within the region with sufficient stocks.
4.1 The P.O. shall seek the approval of the Regional Director (RD) who shall control/coordinate the availability of stocks from source province.
4.2 A corresponding wire adrice shall be sent by the Regional Office (R.O.) to concerned NFA source procince on approved request stating all basic information about the PHRs/Fms allocation cc: DMO. Likewise, a confirmation wire shall be send by the source province to endorsing province cc: DMO/RO stating the availability of stocks.
4.3 A certification (Exh. 2) shall be issued by the Provincial Manager (P.M.) of the endorsing NFA Office to PHRs/FMs with approved request citing their monthly allocation of corn issued for the previous/current month and the name of their authorized representative who shall transact with the issuing office.
5. In case, however, of non-availability or short supply of corn in the region, the R.O. shall seek prior approval from DMO before endorsing interested PHRs/FMs who want to avail of an allocation from another NFA office with sufficient stocks outside of the region. This will prevent dislocation of dispersal allocation of concerned parties.
5.1 Request for allocation endorsement shall be recommended by PM to RD which in turn shall be recommended by RD to DMO.
5.2 Priority for approval shall be given to province/region which have corn dispersal in the marketing plan (transfer-in)
5.3 Regions with dispersal per marketing plan authorized by DMNO which have endorsed PHRs/FMs to other regions shall be correspondingly deducted of their dispersal quantity.
6. Corn Allocation Card (CAC)
6.1 The accredited PHRs/FMs shall accomplish a PHRs/FMs Information Sheet (P/FIS) (Exhibit 3) 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 Licencing Section (RLS).
6.2 The CAC (Exhibit 4) shall be issued in the name of the PHRs/FMs whose name appears on the NFA grains license. It shall be signed by the P.M. A minimal fee shall be charged to defray cost of printing of CACs. Printing of the CAC shall be centralized.
6.2.1 All entries in the CAC pertaining to personal/business data shall be handwritten by the RLS personnel.
6.3 The CAC shall be presented by the PHRs/FMs authorized representative everytime a purchase/withdrawal to made or when demanded during inspection of NFA's Provincial Investigator (Senior Enforcement and Investigation Officer).
6.4 The Record of Purchases/withdrawals portion of the CAC in which a column for a the date, variety are provided shall be filled-up by the Marketing Operations Section (MOS). Likewise, the amount and OR No. column shall be filled-up by the Cashier whenever payment by PHRs/FMs of corn allocation is made.
6.4.1 All the columns for the data provided in the Record of Withdrawals portion of the CAC shall be filled-up by the Warehouse Supervisor (Sr. GOO) everytime a withdrawal is made.
6.5 All CAC 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 is made. It shall indicate the date of revalidation and the signature of the Provincial RLO (Sr. GOO).
6.5.1 No payment/withdrawal shall be accepted by NFA using CAC which have not been revalidated.
6.6 Multilated and filled-up CAC shall be marked "CANCELLED" and surrendered to the RLS. Accordingly, a replacement shall be issued for this purpose.
6.6.1 Lost CAC shall be reported immediately to the NFA-RLS thru the submission of notarized Affidavit of Loss. Replacement of the said said CAC shall depend on the validity of circumstances surrounding the loss.
6.6.2 A replacement fee shall be paid to NFA Cashier to defray expenses in printing the CAC.
6.7 Unauthorized alteration of the entries in the CAC or any substitution of picture/s shall be a ground for the immediate cancellation/revocation of the CAC.
6.8 An index card per CAC shall be maintained by the MOs. It shall contain all information on the CAC including transaction details which shall be updated everytime purchases are made. It shall be filed sequentially per cereal type based on the CAC number.
6.9 The RLS shall determine the number of CAC for printing based on existing accredited PHRs/FMs. For purchases of control, the CAC shall be pre-numbered. Numbering of the CAC shall be as follows:
AA XX YY 0001
' ' ' '
' ' ' ' Sequential numbering of CAC
' ' '
' ' ' ------------ Region and provinces of issue based on NFA
' ' Geographical Codes
' '
' ' -----------------------Cereal type (i.e. CN for Corn)
7. Allocation shall not be cumulative, i.e. monthly allocation or the balance thereof not availed of during the previous month shall not be added to the current month but shall be forfeited.
8. The allocation of apprehended PHRs/FMs shall withheld unless cleared from any violation/case by the Enforcement and Investigation Section.
E. Pricing
1. The Directorate for Marketing Operations (DMO) shall prepare the Selling Price Bulletin (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, DMO shall disseminate same to all field offices concerned.
F. Payment and Withdrawal
1. The CAC shall always be presented every time purchases are made. Only CAC presented by the PHR/FM 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.
2. PHRs/FMs interested to purchase their corn requirements in the area shall coordinate with the Provincial Operations Office (POO) for the preparation of the AAP. The POO shall secure the approval of the PM/OIC in the AAP.
3. The P.O. 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 be pre-numbered by the PO. Copy distribution shall be as follows:
a. Accounting
b. Buyer
c. File P.O.
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 payments 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 approvaed 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 purchases within a specified number of working days after the issuance of AI. Failure to withdraw within schedule for reasons not attributable to NFA shall subject the buyer to pay a corresponding storage fee of P0.50./bag per 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 storage fees.
6.1 Withdrawal of stocks by buyer shall commence not later than the first working day after issuance of AI. Stock purchases 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 have been withdrawn. It shall be the look out of the PM to ensure the smooth and efficient withdrawal operation in his province.
7. The CAC 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-OPER-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-05.2-C92) shall be submitted by the R.O. to DCP/DMO. It shall cover actual volume of grains moved, value and rate of accomplishment againt pre-set targets.
3. The NFA P.O. shall send to DMO a daily wire report on corngrains sales specifying name of buyer, quantity issued and existing corn inventory available for sale.
III. RESPONSIBILITIES
IV. FLOW CHART
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EXHIBITS
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