How to Start a Rice Dealership Business
Rice is an important primary staple food in many Asian countries especially in the Philippines. Indicating the high demand for this commodity, planning to put up a rice dealership business in your area is a wise choice. There is already an assurance that this business will succeed because buyers are already there. Of course, in any kind of business, conducting a feasibility study is always a crucial step to take. This will assess the economic viability of your proposed business.
Here are some important questions to consider before plunging into this kind of business.
1. Do you have enough capital or budget for your rice dealership business? With at least P60,000 to P100,000 as a starting capital.
2. Do you want to operate as sole proprietorship or corporation? Business registration guide here.
3. Do you have a big and safe storage room for the sacks of rice that will be delivered to you?
4. Do you have a good location for your rice dealership business? Research the area of your target market, the flow of traffic and their buying habits.
5. Do you have lists of rice suppliers in your area? Make sure you have a lists of several suppliers and make a good relationship with them.
6. Do you have necessary equipments like calibrated weighing scales, rice sacks etc., and a service delivery (optional).
7. What varieties of rice do you intend to sell? Make sure to have several varieties of rice, so that your customers will have several options.
8. How will you market your business? This is also an important aspect especially you are new in this kind of business. Make a good marketing strategy and make your business known to your customers. Make a good deal with restaurant owners, hotels, resorts and small carenderias in your place to be their rice supplier.
Here are Some NFA Rice Dealership FAQ
Q: Who are required to secure license from NFA?
A: All persons, natural or juridical, that are engaging or intending to engage in the rice and/or corn business whether commercial or NFA rice/corn.
A: Before the start in any of the business activity enumerated above, the proprietor or operator should first secure a license from NFA. For those already license, businessmen should renew their annual license on any day within their scheduled month allotted by the NFA
A: Application may be filed at the NFA office that has jurisdiction over the location of the principal business of the applicant.
Q: In case we have more than one (1) store/establishment for Rice/Corn business, should all be licensed?
A: Yes, owner/operator should file a license for all outlets at the NFA office where his principal place of business is located. Additional outlets are treated as branches.
A: For new applicants, follow these procedures:
secure application form from the licensing officer upon payment of application fee;
accomplish and file application with complete requirements to the licensing officer who in turn checks the documents and determines corresponding license fee;
pay license fee to the cashier and get copy of official receipt;
prepare the facilities/equipment requirements for inspection by NFA Investigators;
after inspection of establishments, present notice of inspection to licensing officer, official receipt and proof of compliance with deficiencies, if any;
licensing officer issues license if application is found to be in order;
applicants display license in their establishments.
Procedures for renewal applicants:
secure application from licensing officer upon payment of application fee;
accomplish and file application with complete requirements together with previous year s license to the licensing officer;
licensing officer checks completeness of requirements and determines license fee to be paid;
pay license fee to the cashier and present the official receipt to licensing officer;
licensing officer issues renewal sticker and stick it to appropriate portion of the license if application is found to be in order;
applicants display licensing conspicuous place in their establishments.
Q: For New Applicants, how long do we have to wait for the Approval of our License Application?
A: The establishments and facility requirements of new applicants are inspected by NFA Investigators within 20 working days after the filling of their applications. Those inspected are given inspection notices stating the date when they can return to the NFA to show compliance with any deficiency, if any. Otherwise, their notices state the date they can get their license. In all these cases, it should not exceed 20 working days after inspection.
A: Application fee is P50.00 for a single line activity and P100.00 for two activities or more. License fees depend upon capacity of the post harvest equipment used.
A: Documentary and facility requirements depend upon the business activity.
Q: Does the NFA requires only Licensing on Rice/Corn Business Activities?
A: The NFA also require the registration of the following facilities aside from the license on the activities mentioned earlier list.
motor vehicles used or intended to be used in transport/hauling of palay/ rice/corn whether for exclusive use or for hire except public utility vehicles franchised by proper government agencies not principally used for transporting rice/palay/corn;
warehouses,threshers and sellers for own produce;
mechanical dryers for owner s/operators exclusive use;
packaging machines for owner s/operators exclusive use;
institutions/establishments securing their rice/corn requirements from the NFA;
poultry and hog raisers securing byproducts from the NFA;
manufacturers/importers/dealers and distributors of rice/corn post-harvest facilities;
non-operating mills and other post-harvest facilities. In this case, registration is done only once.
Registration is done at the office of the NFA that has jurisdiction over the location of the principal business of the applicant.
Registration fees see separate from that of the license fees.
Q: In the event that I discontinue my business, what should I do with my License/Registration Certificate?
A: Surrender your license/registration certificate to the NFA office that issued it together with a written notice of discontinuance.
Otherwise, in case you reapply, you would be charged with the fees for the entire period that you have not applied for renewal.
Q: What do you mean by Bonded Activities?
A: Bonded activities mean third party stocks are deposited in your facilities, for storage, milling, threshing, corn shelling or mechanical drying. Operators/owners of facilities accepting third party stocks are required to post a bond as well as fire insurance to safeguard the stocks of the third party.