Purpose and policy rationale
- The Executive Order directs government entities to source rice requirements from the National Food Authority (NFA) to align with NFA’s mandate to stabilize the supply and price of rice.
- The Executive Order emphasizes that NFA is authorized to maintain a minimum strategic rice reserve and buffer stock, supporting continued availability and affordability.
- The Executive Order recognizes that NFA rice is priced far lower than commercial rice of comparable quality, making it affordable to fixed and low-income earners.
- The Executive Order responds to the practice of government offices providing rice to employees as incentives or non-monetary benefits and using rice in connection with governmental functions.
Covered entities and sourcing rule
- Section 1 requires the National Food Authority to be the primary supplier or source of rice for covered government entities.
- Covered entities are all departments, bureaus, offices, agencies and instrumentalities of the national government, including government-owned and controlled corporations.
- Covered entities also include the Armed Forces of the Philippines and the Philippine National Police.
- The rule applies when covered entities either provide rice to their employees as an incentive or non-monetary benefit or use rice in connection with their functions.
- Section 1 provides that covered entities may source rice elsewhere only upon issuance of an NFA waiver.
NFA scheme and council approval
- Section 2 directs the National Food Authority to draw up a rice distribution scheme and guidelines.
- Section 2 requires approval of the NFA Council for the scheme and guidelines.
- Section 2 requires the scheme and guidelines to facilitate withdrawal, delivery, and payment of NFA rice.
- Section 2 limits the facilitated transactions to NFA rice to be availed of by government entities for their employees or in pursuit of their respective functions.
Rice supply agreements and MOA
- Section 3 directs the National Food Authority to prepare and to initiate the forging of an appropriate Memorandum of Agreement.
- The Memorandum of Agreement must be with concerned government offices.
- Section 3 provides that the Memorandum of Agreement is to operationalize the rice supply arrangement.
Repeal of inconsistent issuances
- Section 4 provides that all executive orders, rules and regulations, and other issuances or parts thereof that are inconsistent with Executive Order No. 51 are revoked or modified accordingly.