LETTER OF INSTRUCTIONS NO. 79

TO    :      The Secretary of Agriculture and

        Natural Resources
        The Secretary of National Defense
        The Administrator, National Grains Authority
        All Provincial Governors

1.    That all millers, traders, warehousemen, transporters and other engaged in the movement and disposition of rice and corn shall obtain a license from the National Grains Authority.

2.    That all such licensed rice and corn millers and traders shall at all times maintain a stock inventory of at least twenty percent (20%) of their monthly trading volume to be on call at any time by the government for disposition by the National Grains Authority as the need warrants. Such stock for disposition by the government shall be priced at Thirty Pesos (P30.00) a cavan to 50 kilos in the case of the special rice varieties and Twenty Five Pesos (P25.00) per cavan of 50 kilos of corn grains. Within this limitation, such licensed millers and traders are allowed to continue normal procurement and trading activities at prevailing market prices.

3.    That all millers and traders are required to report weekly all acquisitions, stock levels, procurement prices, selling prices and other such relevant information as may be further required by the National Grains Authority. The source and destination of all palay, rice and corn shipments must be reported to the National Grains Authority, and the Authority is empowered to stop and further shipments and/or suspend the license of any party involve, if circumstances warrant.

4.    That the Central Bank, through the National Grains Authority, shall supply funds up to P300-million as loans or deposits to licensed millers and traders, who shall then be allowed to use such funds to procure and trade in rice and corn, subject to the minimum stock inventory prescribed in section 2 hereof.

5.    That all rice millers are hereby instructed to mill a minimum of 75 per cent of all palay processed by them into second or third class quality.

6.    That in the provinces all Philippine Constabulary Provincial Commanders are hereby designated representatives of the National Grains Authority in their respective provinces to ensure the proper implementation of this Letter of Instructions. In this task the Commanders shall be assisted by the National Grains Authority personnel and other officials, whether local or national, who may be involved in the distribution or movement of rice and corn. In Greater Manila the National Grains Authority will implement this Letter of Instructions assisted by the Metrocom.

7.    That the Secretary of National Defense is enjoined to give full support and assistance to the Secretary of Agriculture and Natural Resources, the Administrator of the National Grains Authority, and all other officials entrusted with the implementation of this Letter of Instructions.

8.    That the National Grains Authority shall formulate such other rules and regulations as may be necessary to implement this Letter of Instructions.

Since 19.07.98.