Question & AnswerQ&A (EXECUTIVE ORDER NO. 293)
The National Food Authority (NFA) is authorized to intervene in stabilizing sugar prices.
The President may authorize intervention by the appropriate government entity for stabilization purposes if warranted by conditions existing from time to time.
The NFA is authorized to procure or cause the procurement of raw sugar regardless of its clarification, incur necessary expenses, and use corporate funds, manpower, facilities, credit lines, and unremitted income from the Agricultural Competitiveness Enhancement Fund in order to stabilize sugar prices.
The NFA can use its corporate funds, manpower, facilities, credit lines, and unremitted income from the Agricultural Competitiveness Enhancement Fund (ACEF). The NFA is also exempt from paying advance Value Added Tax (VAT) when refining procured sugar.
All disbursements, administrative, and operational expenses incurred should be treated as Special Projects Accounts, subject to usual accounting and auditing rules and regulations.
The National Food Authority, in consultation with the Department of Agriculture, shall issue necessary guidelines on the pricing mechanism, marketing and distribution strategies, and monitoring system.
The Executive Order takes effect immediately upon issuance and remains valid until June 30, 2004.
Sugar is considered a basic necessity under Republic Act No. 7581, also known as the Price Act.
Unremitted income accruing to ACEF, derived from incentives of Minimum Access Volume Importation of sugar, may be used by NFA to fund sugar price stabilization activities.