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.

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.

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