Question & AnswerQ&A (Republic Act No. 663)
The primary purpose of Republic Act No. 663 is to develop and improve the rice and corn industries, stabilize the price of rice and corn, and promote the social and economic conditions of the people engaged in the production of these staple foods.
The corporation created is called the National Rice and Corn Corporation (NRCC).
The National Rice and Corn Corporation shall exist for a term of thirty years from the date of approval of the Act.
The Corporation shall carry out its development work through education, inducements and practical demonstrations; promotion of initiative and cooperation among the people; facilities and guidance; and help from existing government agencies and private institutions.
Strategies include maintaining stable prices consistent with the cost of production and purchasing power, preventing speculation and exploitation of consumers, financing producers, improving quality and yield, promoting industries using by-products, improving the nutritive value of rice and corn, and solving overproduction problems.
The Corporation may own, lease, operate, or hold trucks, railway lines, elevators, mills, factories, irrigation systems, power plants, machinery, warehouses, and other structures necessary for storage, processing, handling, and sale of rice, corn, and related products.
Yes, the Corporation is exempt from payment of import duty on rice, corn, and supplies/machinery needed for demonstration farming. It is also exempt from sales and milling taxes imposed by national, provincial, or municipal governments, and the President may grant further tax exemptions for public interest.
Appointments and promotions within the Corporation must be made based on merit and efficiency without regard to political tests or qualifications. Board members and appointees violating this may be removed from office.
Management is vested in a Board of Directors consisting of five members appointed by the President of the Philippines with the consent of the Commission on Appointments. The President appoints the Chairman from among the Board members.
The capital stock is twenty million pesos divided into 200,000 shares with a par value of 100 pesos each. The government subscribes to all shares except those necessarily sold to Board members. Payments are made in instalments as scheduled by the Act.
The Auditor General shall audit the Corporation transactions at least once per government fiscal year and reports must be submitted in quadruplicate to the President, Chairman of the Board, Congress, and public office. The Corporation must maintain segregated accounts for stabilization, production development, and promotion of economic/social conditions.
The Corporation may exercise eminent domain rights in the name of the Republic of the Philippines to acquire real estate for its purposes if it fails to purchase such property at a reasonable price, with the title to land vested in the Republic and entrusted to the Corporation.
Yes, the Corporation can undertake research on industrialization, conservation, and better utilization of agricultural products, and promote home industries among the families engaged in rice and corn production.
The existing Corporation is dissolved, and all its properties, assets, liabilities, contracts, and business affairs are transferred and vested in the newly created National Rice and Corn Corporation established by the Act.
Purchases and contracts, except for personal services, require public advertisement and competitive bidding unless exceptions apply such as emergencies, small-scale purchases not exceeding P1,000, or existing contracts for repair parts. The Board may consider quality, financial responsibility, and delivery time in awarding contracts.