Guidelines Governing Implementation of Corn Procurement Program

July 10, 1973

LETTER OF INSTRUCTIONS NO. 98

 

Pursuant to Proclamation No. 1081 dated September 21, 1972 and considering that there is unusual bumper crop of corn in Mindanao, a massive corn procurement program is hereby ordered in order to protect the well-being of the farmers in Mindanao and stabilize corn prices in corn eating areas for the benefit of the consumers. Such program shall be directed by the Secretary of Agriculture and Natural Resources or his representative with the assistance of the Administrator, National Grains Authority, and the support of the President of Philippine National Bank and the Chief of the Philippine Constabulary. casia

The following guidelines will be followed in the implementation of this letter of instructions:

1. The NGA will —

a) organize for action within 2 weeks so that by July 20, the procurement machinery in southeastern and northeastern Mindanao will be operational, and that by the end of July, it will be operational in other places in Mindanao.

b) involve the provincial governments and the schools in seeing to it that the crop will be harvested on time.

c) employ under appropriate agreements the capabilities of private corn industry (trading, storage, drying, shelling, and processing) operators.

d) allow, up to a point, industrial users of corn to enter the market and buy.

e) with the assistance of DANR personnel, enter into forward contracts with farmers and farmer groups for them to deliver to NGA shelled corn at P.50/ kilo ex farm. This would enhance NGA's position in the market and enable it to influence more effectively buying price levels.

f) buy-mill-distribute-and-sell to enable it to place incremental supply in the rice/corn consumer markets, and thereby diminish the demand for rice in these markets.

g) arrange immediately at prevailing rates, for such facilities as are needed, including trucks, scales, dryers, shellers, warehousing space and milling. Labor will be hired and supplies (such as sacks and twine) will immediately be procured on the basis of a canvass. (Instead of public bidding)

h) establish main operational centers, with supportive collection points, at the following places:

1. Digos, Davao del Sur

2. Bansalan, Davao del Sur

3. Malalay/Supod, Davao del Sur

4. Davao City

5. General Santos, South Cotabato

6. Koranadal, South Cotabato

7. Tacurong (for North and South Cotabato)

8. Cotabato City (for North Cotabato)

9. Others cd

* Malaybalay

* Iligan

* Ozamis City

* Dipolog

* Pagadian

2. The Philippine National Bank shall assist NGA in servicing the corn procurement operations, particularly in the expeditious handling of the funds for corn purchases. Funds already available or will be made available to NGA for rice or corn will be used. Initially, a total of P45 million is authorized for use in the procurement operations.

3. The Philippine Constabulary shall assist NGA in maintaining peace and order in corn procurement areas and in the enforcement of pertinent NGA rules and regulations.

4. The Secretary of Agriculture and Natural Resources, or his representative, is authorized to call upon other agencies of government to assist in the implementation of the corn procurement program.

DONE in the City of Manila, this 10th day of July, in the year of Our Lord, Nineteen Hundred and Seventy-Three.