Release of Funds to NGA for Construction of Grains Warehouses and Acquisition of Post-Harvest Facilities

January 10, 1979

LETTER OF INSTRUCTIONS NO. 792

WHEREAS, the National Grains Authority (NGA) is mandated by P.D. No. 4 as amended by P.D. 1485 to procure or cause the procurement of grains in order to maintain adequate cereal supply for the great masses of our people and at the same time stabilize consumer prices; aisa dc

WHEREAS, the NGA, conscious of its responsibilities, has embarked on massive procurement activities of rice, corn and other grains, and in establishing warehouses in strategic locations throughout the country to assure the farmers a ready market for their produce, and a fair return on their investments, enabling them to enjoy a decent level of income;

WHEREAS, in view of the successful government program for increased food production, especially on cereals, the farmers are continuously taking advantage of the government price support for grains thereby resulting in inadequacy of storage facilities;

WHEREAS, it is imperative for the government through the National Grains Authority to build and acquire more storage facilities in key centers of production, in order to accommodate the continuing increase in grains production;

WHEREAS, it is likewise necessary for the National Grains Authority to have additional transport and modern processing facilities which will minimize losses and preserve better quality of grains; cd

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, in order to hasten the establishment of facilities in support of increased production, do hereby direct:

1. The Ministry of Budget to release immediately to the National Grains Authority the amount of P21 M for the immediate construction of grains warehouses and the acquisition of Post-harvest facilities;

2. The National Grains Authority to purchase from the Agricultural Credit Administration the latter's warehouses and Land properties necessary to accommodate the Farmer's produce, more specifically, its property located at Meycauayan, Bulacan, at a fair market value to be determined by the Commission on Audit;

3. The National Grains Authority to negotiate and purchase its needed post-harvest facilities such as transport and processing equipment and other ancillaries necessary in its operational activities;

4. The Philippine Estate Authority and the Philippine Ports Authority to immediately allocate a portion of the reclaimed area in Cebu City for the construction of NGA storage facilities thereat;

5. The National Grains Authority through its administrator, be authorized to negotiate contracts for the establishment and or acquisition of post-harvest facilities, not exceeding P5M per contract.

DONE in Metro Manila this 10th day of January, in the year of Our Lord, Nineteen Hundred and Seventy-Nine. cd