Title
Mandate for gov't agencies to buy rice from NFA
Law
Executive Order No. 51
Decision Date
Dec 22, 1999
Executive Order No. 51 mandates all government entities in the Philippines to purchase their rice requirements from the National Food Authority (NFA) in order to stabilize the supply and price of rice, ensuring that government entities obtain rice from the NFA at a reasonable price through a distribution scheme and Memorandum of Agreement.

Questions (EXECUTIVE ORDER NO. 51)

It directs all departments, bureaus, offices, agencies and instrumentalities of the national government (including GOCCs, AFP, and PNP) that provide rice as an incentive or use rice in their functions to purchase their rice requirements from the National Food Authority (NFA).

Only upon issuance of an NFA waiver can the covered government entity source rice elsewhere.

All departments, bureaus, offices, agencies and instrumentalities of the national government, including government-owned and controlled corporations (GOCCs), the Armed Forces of the Philippines (AFP), and the Philippine National Police (PNP), to the extent they provide rice as an incentive/non-monetary benefit or use rice in connection with their functions.

To stabilize the supply and price of the country’s staple food, rice.

A strategic rice reserve equivalent to 15 days national consumption at every given time of the year.

A buffer stock equivalent to at least 30 days by July 1 of every year.

It establishes NFA as the primary supplier/source for covered entities and restricts procurement from non-NFA sources unless an NFA waiver is issued.

NFA shall draw up the scheme and guidelines, with approval of the NFA Council, to facilitate withdrawal, delivery, and payment of NFA rice by government entities.

It is required for the NFA’s scheme and guidelines governing withdrawal, delivery, and payment of NFA rice to be availed of by government entities.

Prepare and initiate the forging of an appropriate Memorandum of Agreement (MOA) with concerned government offices.

It revokes or modifies all executive orders, rules and regulations, and other issuances (or parts thereof) that are inconsistent with the EO’s provisions.

It takes effect immediately.

It states that NFA rice is priced at a reasonable level far lower than commercial rice of comparable quality, making it more affordable especially to fixed and low-income earners.

It indicates NFA should be the default/first source for covered entities, and that deviation requires the specified exception—an NFA waiver.

It expands the scope beyond “employee incentives” to include any official use of rice by covered government entities in relation to their governmental functions.


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