⌛ Rice trading

Does anyone one have knowledge on this subject? and I don't mean in the stock market. I looking at being a rice trader Which means buying Palay from farmers. Does anyone know how this works.. I looked and read everything I can find on the net. However does anyone have personal experience with this business?

 

What would you like to know about this, Sir? If you only have to buy the grains from the farmers that is just handing to them your cash for their crop. Or you mean from buying the grains to milling them and wholesale/retail?

All you need to do is apply for a business permit and create business relationship with the farmers and with the potential customers.

So much to tell, could you specify which part of the trading would you like to concentrate into?

 

And oh - aside from the general Mayor's Business Permit, I believe you also need to have a business permit from the NFA (National Food Authority) and/or NGA (National Grains Authority) especially when you operate milling.

 

Rice trading is good business but needs a big investment.
You need a truck and storage and if buying palay a drying floor.
Besides of that Dumaguete is not a ricegrowing area, Bacolod is.
If You want to buy palay, just go to the big ricemills south of Bacolod and ask the farmers who are milling there product how you can buy.
Palay You can keep for a long time, milled rice only for a short time.
Best palay is #64.

 

what little I know Permits

As far as I know this is the list of what I know of this far but being the Philippines there maybe more..

1. Business Name Registration
2. Mayor’s Permit
3. Tax Identification Number (TIN)
4. Social Security System (SSS)
5. Department of Labor and Employment (DOLE) Registration

FOR PARTNERSHIP
6. Securities and Exchange Commission (SEC) Certificate
FOR CORPORATION
7. Securities and Exchange Commission (SEC) Certificate

Other agency’s
8. National Food Authority (NFA) Certificate

 

You are very right with all the list of requirements and I deliberately did not spell it one by one cuz, each of the mentioned offices have their own set of requirements.

Most of the time you need to begin with the TIN number (number 3 in your list) but some may require you to be having a Barangay Clearance in order to be issued a TIN. But that all depends on where you live...

 

Oh okey - your question is on the PERMIT.

All you need is to go the Department of Trade and Industry, and you don't need to worry about what you need.

They will ask you papers/requirements which will forward you to other offices involved and on and on (see my previous message).

 

The plan kind of

I am thinking about buying Palay from the farmers them milling it and selling it.. I do plan to do the business in the Bacolod area.

I have found new milling equipment that will handle 18 tons a day and I have the Plan for a 6 ton drier. I'm thinking of an Isuzu ELF with a 14ft bed will do what I need it to do. However I am not sure of the capital needs of the business. There is also a plan for a storage building. 100 square meters

I am also not sure if I really want to put a mill up. ( i.e. would it be cost effective) I wonder if I would be better off in the long run to just have a couple of driers and a truck. I would greatly appreciate any help you could give me on this. I am very torn on which way to go..

 

Whichever way you decide, I'm sure you will be, for the first few years of business anyway.

 

Teacher, I admire your tenacity in trying to generate some income. But, you may have noticed, I haven't encouraged your Bacolod business ambitions significantly. The reason is - you would be swimming with the sharks....and, in case you haven't figured it out - you are dinner. Bacolod is light years ahead of Dumaguete in the amount of pesos floating around - but they have generations there skilled in getting yours. I've got relatives there, and on Panay who are millionaires (dollars - not funny money) and the advice from them is - don't think about a business in the Philippines. It's completely corrupt and you will likely lose it all in the end. They struggle to stay afloat with all the bullshit they have to contend with, but they soldier on and pay who they must..... I have friends and very sadly met others who tried, lost, and were spending their last pesos on alcohol they hoped would kill them. A couple of them managed to get out of the country before their livers gave up....never to return. Keep your money out of the country as best you can...and live off the income it generates....five hundred dollars or a thousand a month - is a lot better than zero...