Decision No. 137/1998/QD-TTg On the Management of National Food Reserves

DECISION OF THE PRIME MINISTER

Regarding the management of national food reserves 

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Regulation on the Management of National Reserves issued together with Decree No. 10/CP dated February 24, 1996 of the Government;

To ensure national food security and strengthen the management of national food reserves;

PURSUANT TO THE PROPOSAL OF THE DIRECTOR OF THE NATIONAL RESERVE AGENCY,

DECISION:

Article 1. National food reserves consist of rice and paddy grains of the State that meet quality standards as prescribed for use in purposes such as ensuring national food security; preventing and mitigating the consequences of natural disasters; serving national defense and security; and other requirements of the Government.

The National Reserve Agency directly manages this quantity of national food reserves.

Article 2. The management of national food reserves shall be carried out in accordance with the provisions of this Decision and the Regulation on the Management of National Reserves issued together with Decree No. 10/CP dated February 24, 1996 of the Government.

Article 3. Based on the situation of production and consumption of foodstuffs, the national food security target, storage period, and preservation technology process, the National Reserve Agency shall coordinate with relevant ministries and sectors annually to submit to the Prime Minister for decision on the targets of the plan for national food reserves:

Total reserve level; Structure (rice, paddy); Total amount purchased (including increased reserves and exchanged goods); Total amount sold (including reduced reserves and exchanged goods); Budget capital allocated.

Article 4. Based on the approved plan, the National Reserve Agency must ensure that the quantity of national food reserves regularly stored in warehouses reaches the reserve level prescribed by the Prime Minister; decide and be responsible for the rotation of national food reserves. During the rotation period, the quantity of national food reserves in the warehouse must not be lower than 60% of the total prescribed level.

Article 5. When necessary, to intervene in the food market, ensure the interests of food producers and consumers, and other requirements, the Prime Minister decides on the import or export of food outside the annual approved plan.

Article 6. The purchase and sale of national food reserves shall be conducted according to the tendering regulations. In special cases where the National Reserve Organization must purchase from farmers and sell to consumers individually, based on the ceiling price (purchase price) and floor price (sale price) set by the Government Price Board, the National Reserve Agency shall direct the local Reserve Sub-offices to determine the purchase and sale prices close to the market price at the time of purchase and sale in each region within the prescribed price range.

Article 7. When selling national food reserves and there is no domestic demand for purchase, the National Reserve Agency may export according to the general regulations of the State.

Article 8. After consultation with relevant agencies, the National Reserve Agency shall establish and promulgate quality standards, preservation procedures, and storage periods for national food reserves within its authority.

Article 9. Warehouses storing national food reserves must be arranged in accordance with the planning approved by the Prime Minister in strategic areas, with centralized warehouses in each area having drying yards, protective walls, and drying and preservation equipment, safety systems, and measures to prevent natural disasters; fire prevention; and other harmful acts.

Based on the objectives of food reserves, actual conditions regarding climate in each region, warehouse facilities, preservation equipment, and characteristics of different types of food reserves, the National Reserve Agency shall study and build appropriate-scale concentrated reserve zones, select and apply advanced preservation technologies to maintain the quality of food reserves for longer periods than currently possible.

Article 10. Annually, the state budget shall allocate funds to:

Increase food reserves or purchase to compensate for food reserves sold without payment according to orders of

Article 11. For the state budget capital allocated for purchasing national food reserves according to the budget estimate, if the purchase price decreases compared to the plan, the state budget shall only allocate according to the level of food reserves decided by the Prime Minister. If the purchase price increases and the state budget capital allocated according to the budget estimate does not purchase the assigned quantity of food reserves, the Ministry of Planning and Investment shall take the lead, in coordination with the Ministry of Finance and the National Reserve Agency, to submit to the Prime Minister for decision.

Article 12. Organizations and individuals entrusted with the task of managing national food reserves who fail to fulfill their responsibilities or do not comply with the State's regulations on purchasing and selling food, causing losses exceeding the allowable limit or loss during food preservation, must compensate material losses corresponding to the amount of food damaged. If serious damage is caused, in addition to material compensation, criminal responsibility shall also be pursued according to the law.

Article 13. The Director of the National Reserve Agency and ministries, ministerial-level agencies, and government agencies, provincial People's Committees under the central government, within their respective functions, tasks, and authorities, are responsible for guiding, directing, and organizing the implementation of this Decision.

Article 14. This Decision shall take effect fifteen days from the date of signature.

Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities are responsible for implementing this Decision./.