Buffer Stock Management

ACQUISITION

A. Procurement Program - NFA buys palay from individual farmers/farmer organizations at the government support price. This program is undertaken to ensure and establish manageable buffer stock in line with the agency's function of maintaining optimal level of rice inventory that shall be maintained at any given time to be used for emergency situations and to sustain the disaster- relief programs of the government during natural or man-made calamaities. 

In support of the procurement activity of NFA, the Institutionalized Procurement Program (IPP) - is implemented in areas where the Farmer Group Marketing Councils (FGMCs) are existing and/or in areas where the NFA Regional Office has determined that farmer groups to be organized are active. Only Farmer Groups with legal/juridical identity and registered by Department of Agriculture (DA), Cooperative Development Authority (CDA), and Securities and Exchange Commission (SEC), or other supervising agencies empowered to register cooperatives/associations are entitled to participate in the IPP. All participating farmer groups shall be accredited by the NFA prior to official participation in the IPP.

B. Stock Quality Maintenance Program - This program ensures that stored stocks are maintained in good and consumable conditions. Warehouse supervisors are required to practice good warehouse keeping in their respective warehouses to maintain good quality stocks. 

C. Distribution - It is the program of strategic positioning of the stocks in order to respond to relief operations of the government and also for replacement of stocks. 

• Emergency use: Rice releases in response to emergencies in support of disaster relief programs of the government: Thru sales -  Government Agencies, Local Government Units, and Private Institutions involved in relief operations; Thru donations: Local Government Units.
• Auction of aging stocks to replace old stocks. Manner of auction is determined by management depending on the current situation in the local area. 
• To support the delivery of our core function, or Major Final Output (MFO), there are activities/programs that support the operations such as quality monitoring and evaluation and statistical services.
• Also, like any other agency, the agency has activities that deal with the provision of overall administrative management support such human resource development, general administrative services, and financial services.