August 9, 2011

DA MEMORANDUM ORDER NO. 017-11

SUBJECT : Guidelines on the Implementation of Rice Seeds Buffer Stocking

The Department of Agriculture is hereby issuing this Memorandum Order as one of the important measures to ensure food sufficiency and as pro-active response to calamities and unforeseen climatic events that adversely affect rice production. Therefore, the Department shall ensure seed availability at any given time during calamities as seed security is vital to food security.

I. Objectives

The general objective of the Seed Buffer Stocking Program is to ensure the availability of high quality rice seeds that can be accessed by the farmers in times of calamities and unforeseen events affecting rice production.

Specifically the aims are:

1. Store up to 10% of the total seed requirement as Seed Buffer Stock that will be accessed and distributed to affected farmers in times of calamities;

2. Enhance partnership among the government, established seed growers, and other public or private entities on the provision of high quality seeds to the rice farmers.

II. Definition of Terms

Calamity/emergency shall refer to disastrous events that may arise from (1) natural causes, such as typhoons, floods, landslides, tsunamis, droughts, pest and disease outbreaks, or (2) man-made occurrences such as fires, chemicals or hazardous substance contaminations, and similar disasters.

Storage facility shall refer to any repository of seeds as source of planting materials for future use. It is a place where seeds are stored short- and long-term use.

Buffer seed stock shall refer to the 10% seed requirement (as per AO 12 series of 2006) of the province that will be stored in government storage facilities and other government accredited facilities for a certain period and will be made available to the farmers in times of planting during emergencies. CIDcHA

III. Statement of Policies and General Guidelines

1. The Rice Program shall allocate the required funds for the seed buffer stocking and determine the allocation of the 16 regions based on historical and statistical occurrences of typhoons, floods, droughts, and other similar calamities and disasters affecting rice production.

2. Rice seed buffer stocks shall consist only of certified seeds of locally preferred inbred rice varieties.

3. The seeds for buffer stocking shall be procured in accordance with existing government prescribed buying price.

4. Any seed lot or bags of seeds in the buffer stock in DA-RFU storage facilities with germination rate below 85 percent as per Bureau of Plant Industry (BPI) testing and official written test results shall be immediately sold as commercial palay to the nearest procuring station of the National Food Authority (NFA) or to private individuals as commercial palay at NFA set buying price or prevailing market price within the locality, or whichever is higher.

IV. Program Components

A. Provision of High Quality Seed Materials (Certified Seeds)

B. Rehabilitation of Storage Facilities

C. Program Reporting, Review, and Monitoring

V. Strategies of Implementation

Rice seed buffer stocking will be implemented using a two-track system, namely: a) through the DA-RFUs that will store and distribute the rice seed buffer stock; and b) through authorized Seed Growers Cooperatives by means of a Disbursement Voucher System. The DA-RFU System will be done to cater to areas where there are no existing or interested Seed Growers Cooperatives, while the Disbursement Voucher System will be done to cater to areas where there are existing and interested Seed Growers Cooperatives.

A. Provision of High Quality Seed Materials (Certified Seeds)

A.1. Procurement for Buffer Stocking

Seed procurement for buffer stocking will be done using the two tracks: a) through the DA-RFU; and b) through voucher system. Continuous evaluation will be done and these guidelines shall be refined as may be appropriate.

A.1.1.  Through the DA-RFUs

1. Procurement shall follow the "direct procurement process" wherein transactions shall be only with the BPI accredited seed growers or the Seed Grower Cooperatives.

2. Procurement in the case of individual seed growers shall be limited to their own produce in terms of volume and variety. For accredited Seed Grower Cooperatives, it shall be based on the cumulative volume produced by their members. This shall be supported with relevant documents issued by the BPI showing the number of bags and variety that passed certification for the individual seed grower and members of cooperatives.

3. Procurement shall be made only from BPI accredited seed growers or Seed Grower Cooperatives and can issue their own BIR Official Receipts (ORs) upon payment of the delivered rice CS by the DA-RFU. cDTaSH

4. Quantities to be procured by each DA-RFU shall be based on the annual procurement plan prepared by the concerned Regional Seed Coordinator and endorsed by the Regional Executive Director to the Rice Program.

5. If seeds are not available from the local seed growers, outsourcing shall be done from other regions.

6. Transportation and handling cost of the seeds shall be shouldered by the seed growers within 50-km distance from source to the DA-RFU specified seed storage. Beyond the specified distance, transport cost shall be charged against the RFUs Rice Program.

7. The CS to be procured shall also conform with the following:

a. Passed certification by the BPI based on Revised Administrative Order No. 16, Series of 2010 (Revised Guidelines on Inbred Rice Seed Certification).

b. Not more than three (3) months from date of certification as per the date indicated in the result of laboratory analysis.

8. Procurement shall be in consonance with the procedures outlined hereunder:

a. The RFU shall canvass BPI accredited seed growers and Seed Growers Cooperatives in the region as to availability of CS supply including volumes, varieties, and the specific dates these shall be available one (1) month prior to each procurement.

b. Purchase Orders (POs) shall be issued or awarded to the accredited seed grower or Seed Growers Cooperatives to formalize the procurement contracts, specifying the volume, variety, weight per bag, place of delivery, date of purchase, and distance of transportation as reflected in the procurement plan and canvass.

c. The seed grower shall deliver the seeds to the seed storage facility specified in the PO while technical inspectorate groups duly designated by DA-RFU shall inspect deliveries at the specified seed storage.

d. The DA-RFU designated inspectors shall conduct random weighing of at least 10 percent per seed lot of the quantity delivered by the seed growers to verify compliance to the prescribed weight of not less than 40kg per bag.

e. Payment of the inbred rice certified seeds that were delivered, inspected, and accepted shall be made at the DA-RFU office using the voucher system. DIEcHa

A.1.2. Through the Disbursement Voucher System

1. The DA-RFU shall enter into a Memorandum of Agreement with interested BPI accredited Seed Growers or Cooperatives to formalize the contract specifying the volume, variety, weight, and cost per bag of rice certified seeds (CS) for buffer stocking, and the terms and conditions for the payment, as reflected in the implementing guidelines.

2. Since CS shall be procured directly, the volume and variety shall be based on the cumulative volume produced by their members. This shall be supported with relevant documents issued by the BPI showing the number of bags and variety that passed certification for the members of cooperatives.

3. Quantities to be procured from the contracted BPI accredited Seed Growers' Cooperative shall be based on the approved request from interested party for CS distribution in declared calamity affected areas:

a. LGU shall assess the situation in declared calamity areas and prepare the masterlist of beneficiaries.

b. Masterlist of beneficiaries shall be submitted by the municipal LGU to provincial LGU which will be validated, signed, and endorsed by the provincial LGU to the DA-RFU.

c. DA-RFU shall conduct random checking/verification on the submitted masterlist of beneficiaries.

d. DA-RFU shall prepare and award Purchase Order (PO) to Seed Grower or Cooperative under contract with the DA-RFU, as stated in numbers 6 and 7.

4. If certified seeds are not available from the members of the contracted accredited Seed Growers Cooperative, outsourcing shall be done by them from other accredited Seed Growers or Seed Growers' Cooperative, within or outside the region, upon securing authority from the DA-RFUs.

5. Transportation and handling costs of the seeds shall be shouldered by the BPI accredited seed growers within 50-km distance from the contracted accredited Seed Growers Cooperative seed storage facility to the identified drop off points. Beyond the specified distance, transport cost shall be charged against RFUs Rice Program.

6. The Rice CS to be procured shall conform with the following:

a. Passed certification by the BPI based on Revised Administrative Order No. 16, Series of 2010.

b. Not more than three (3) months from date of certification as per the date indicated on the tags attached to each bag. AEHCDa

c. Shall have a germination percentage of not less than 85 percent during the time of delivery to the drop off points.

7. Procurement shall be in accordance with the procedures outlined hereunder:

a. Purchase Orders (POs) shall be issued or awarded to the accredited Seed Growers' Cooperative, specifying the volume, variety, weight per bag, and place of delivery, date of purchase, and distance to the drop off points.

b. The contracted accredited Seed Growers Cooperative shall deliver the seeds to the identified drop off points specified in the PO while technical inspectorate groups duly designated by the RFUs shall inspect deliveries at the specified drop off points.

c. The RFUs designated inspectors shall conduct random weighing of at least 10 percent per seed lot of the quantity delivered by the seed growers to verify compliance to the prescribed weight of not less than 40kg per bag. 

d. Accredited Seed Growers' Cooperative shall submit required documents for payment of delivered seeds and transport cost as specified in this guideline.

e. Payment of the inbred rice certified seeds that were delivered, inspected, and accepted shall be made at the DA-RFU office using the voucher system.

B. Seed Storage

1. The rice CS buffer stocks shall be kept in the designated storage facility of the RFUs or to the contracted accredited Seed Growers' Cooperative in accordance with the appropriate procedure on storage.

2. Good warehouse keeping shall always be ensured by the RFUs and the contracted BPI accredited Seed Growers or Cooperatives.

3. RFU shall request BPI — NSQCS in their respective region to conduct seed sampling and testing by seed lot four months after the first test, and every month thereafter. Keep the record of seed laboratory results for immediate and easy reference.

4. RFU shall strictly monitor the stored seeds, maintain records, prepare monthly seed inventory reports, and submit said reports to the BPI — Crop Production Division.

C. Buffer Stock Releasing and Utilization

The buffer stocks shall be distributed to farmers affected by calamities and unforeseen events. Distribution to the LGUs shall be undertaken by the RFUs with procedures, as follows:

1. Require the Local Government Units (LGUs) to submit damage report with the masterlist of affected farmers.

2. The RFU shall issue the corresponding CS to the requesting party at the designated RFU seed storage thru the in-charge based on the approved request.

3. If through the Disbursement Voucher System, RFU shall issue/award a Purchase Order to the contracted accredited Seed Growers or Cooperatives based on an approved request from interested party as bases of their delivery of the CS to the drop off points specified in the Purchase Order.

D. Stock Maintenance

1. The RFUs shall replenish the seed buffer stock to its original level in their storage facilities once or twice a year with newly bought seed stocks.

2. The seed buffer stock shall be stored in the appropriate storage facility to be set-up by the RFUs.

3. Buffer Seed Stocks that are not distributed can be sold to farmers for the next cropping season provided that the seed germination is still acceptable (85%).

4. Buffer Seed Stocks below 85% germination can be disposed of to NFA or to private individuals as commercial palay at NFA set buying price or the prevailing market price within the locality.

5. Proceeds from the sale of seed stock as seeds and as commercial grains shall be deposited in the Special Trust Fund of the RFUs and will be used to procure new seed stock for replenishment of the seed buffer stock.

6. DA staff shall be assigned to manage the DA Seed Centers. Operating cost shall be borne by the RFUs.

7. The DA Rice Program shall allot funds to replenish the seed buffer stock, rehabilitate and upgrade the storage facilities, cover the costs associated with administration, potential loss from selling the seeds in case of low seed germination as commercial palay and providing seeds for free in case of calamities. ASCTac

B. ^* Rehabilitation of Storage Facilities

The RFUs shall be in charge of the rehabilitation of existing DA storage facilities, which include determination of the work items and indicative cost for upgrading:

1. Prepare the detailed engineering plan and program of work for the DA-RFU-owned and existing warehouse upgrading for buffer stocking; and

2. Prepare an implementation schedule;

3. Determination of the work items and indicative cost for upgrading;

4. Prepare the detailed engineering plan and program of work for the DA-RFU-owned and existing warehouse upgrading for buffer stocking; and

5. Prepare an implementation schedule.

Likewise, maintenance shall be undertaken by the Station where facilities are lodged.

C. Program Reporting, Review & Monitoring

Updates on program implementation, including inventory of seed buffer stock shall be regularly submitted to the BPI Crop Production Division.

Field Validation and Monitoring shall be conducted by the National Rice Program and BPI.

VI. Effectivity

This Memorandum Order shall take effect immediately upon signing and shall supersede other issuances that are inconsistent herewith.

(SGD.) PROCESO J. ALCALASecretaryDepartment of Agriculture