Starting a bigasan business can be a smart move in the Philippines as Filipinos love rice, so much that it’s considered a food staple in the country and part of our diet.
How Much Capital Is Required To Start A Rice Business In The Philippines?
You’ll need a capital starting at ₱50,000 for retailers and ₱250,000 for franchises, this is for people who want to sell a common product that has an existing market.
If you’re planning to open your own, here are a few tips to keep in mind to be successful in the rice retailing business:
How Do I Start A Rice Retailing Business?
1. Get The National Food Authority (NFA) License
The law mandates every rice business in the Philippines needs approval from the NFA, whether it’s commercial or NFA rice.
You’ll need a license for the main store if you’re going to open numerous outlets. All the other outlets will be considered as branches.
Head to the NFA office that has jurisdiction in the location of the rice business.
You can get an application form from the licensing offer (LO). Submit the form and pay the application fee of ₱100.
A licensing fee will need to be paid but varies depending on the amount of capital you have.
2. Register Your Business
Businesses need to be registered with the Department of Trade and Industry (DTI) for sole proprietors and the Securities and Exchange Commissions (SEC) for those operating with partners or a corporation.
3. Buy Proper Equipment
Part of NFA licensing requires that you have the following:
- Calibrated weighing scale
- Price tags (price per kilogram)
- Rice boxes painted in white
- Signboard (45 cm wide and 75 cm long) indicates your business name, NFA control number, with the title “Wholesaler” or “Licensed Grains Retailer“
- Variety, classifications, and grade of the rice that’ll be sold
The NFA inspector will issue (once approved) a notice of inspection, which you’ll need to bring along with the proof of compliance with deficiencies (if any) and official receipt to the NFA office to receive your license.
4. Pick A Good Location
The ideal location should be a place with the right target market in the rice business and has a lot of foot and vehicle traffic.
In this case, a great example would be palengkes (wet markets) and groceries where people always buy rice.
5. Invest In Proper Storage For Rice
Rice spoils quickly, and its quality will deteriorate within three months. Using the “first-in, first-out” (FIFO) method makes sure every sack of rice doesn’t go beyond its shelf life and is of high quality.
Pests or bugs like bukbok (weevils) are rice’s worst enemy. Remember to clean and sanitize your storage area to prevent infestation.
6. Be Friends With Your Suppliers
For people living near Bulacan, Primavera Rice Mills in Guiguinto is the most recommended rice supplier for big fast-food chains and restaurants in Metro Manila.
Make a list of the available rice suppliers in your area and make friends with them. With a good relationship with suppliers, you’re likely to receive discounts in the long run.
Franchisees, however, might not benefit from this since franchisors usually have their own rice mills. This limits the franchisee’s control over rice distribution.
7. Provide Good Customer Service
Imagine you’re the customer – they’ll want to see a variety of rice for sale.
Offering a wide selection will make it easier for customers to do with your business with the options that you give them.
Look into making deals with both large and small businesses, from hotels to carenderias.
Giving your customers even a small discount can be a big boost to your bigasan business as they’ll likely be loyal and even refer you to their friends.
8. Set Aside Budget For Rice Supply
There are some rice suppliers that require retailers to have a minimum order of rice.
Otherwise, they won’t supply rice.
Putting a portion of the budget for rice can help prevent problems from dealing with suppliers.
9. Separate And Cover Rice From Other Goods During Transportation
Because of sun exposure during transportation, rice can lose moisture and reduce in size, up to 3%. Properly covering them can prevent bukbok from hiding in the grains, especially when trucks pass by other rice fields.
You’re Ready To Start Your Bigasan Business!
By following these bigasan business tips, you’re more likely to succeed and even build your own rice empire.
If you need help or more information, refer to the contact information for relevant authorities in the rice industry.
Business Licensing Authorities
Department of Trade & Industry
Address: Trade & Industry Building, 361 Senator Gil J. Puyat Avenue, Makati City, Metro Manila, Philippines 1200
Trunk Line: (632) 7791 3100 | (632) 7751 0384
National Food Authority Philippines
Address: National Food Authority, Visayas Warehouse, Visayas Avenue, Brgy. Vasra, Quezon City, Metro Manila 1128 Philippines
Instagram / Twitter: @bigas_nfa
Mobile no.: 0906 436 3133
Security and Exchange Commission (Licensing Unit)
Address: G/F Secretariat Building, PICC Complex, Roxas Boulevard, Pasay City, 1307
Trunk Line No: 8818-0921