Republic of the Philippines
HOUSE OF REPRESENTATIVES ¢
Quezon City =

REM

SEVENTEENTH CONGRESS
First Regular Session

2841

HOUSE BILL NO.

Introduced by REP. TEDDY BRAWNER BAGUILAT

AN ACT ESTABLISHING A STRATEGIC FOOD SECURITY RICE RESERVE
AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Rice is the most important staple crop of the Philippines. Every Filipino consumes
about 114 kilograms of rice annually. It is, therefore, crucial that rice is made accessible
and affordable to every Filipino consumer particularly during times of emergencies and
disasters.

With the objective of ensuring steady and ample supply of rice at affordable prices,
this bill proposes to establish a strategic food security rice reserve. A minimum rice
reserve equivalent to the fifteen (15) day national rice consumption is to be established,
maintained, and controlled by the Government through the National Food Authority
(NFA), the agency mandated to ensure food security in the country and the stability in
the supply and price of rice.

The passage of this bill is, therefore, earnestly sought.

TEDDY BRAWNER BAGUILAT
Ifugao Lone District


15
16
7

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

HOUSE BILLNO._ 2841

Introduced by REP. TEDDY BRAWNER BAGUILAT

AN ACT ESTABLISHING A STRATEGIC FOOD SECURITY RICE RESERVE
AND FOR OTHER PURPOSES

Be enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Title. - This Act shall be known as the "Strategic Food Security Rice
Reserve Act of 2016".

SEC. 2. Declaration of Policy. - It shall be the policy of the State to ensure an
adequate supply of rice at reasonable and affordable prices for the people during
calamities.

SEC. 3. Definition of Terms. - As used in this Act, the following terms shall mean:

(a) Calamities are fortuitous events which include acts of God such as but not limited
to typhoons, floods, droughts, earthquakes, fires, volcanic eruptions, lahar flows, and
acts of man such as political and/or civil disturbances, and wide-spread civil unrest.

(b) Goverment Food Security Rice Reserve is the inventory of rice and/or palay by
the National Food Authority (NFA), equivalent to the fifteen (15)-day average national
daily rice consumption to be maintained as a matter of national policy.

SEC. 4. Administration. - In order for the National Food Authority (NFA) to
effectively perform the functions and responsibilities provided for in this Act, it shall:

(1) Maintain and manage a government rice reserve equivalent to fifteen (15) days of
the national rice consumption for the current year and determine the location and

distribution of such stocks into depots nationwide.
1


Ue wn

18
19
20

21
22
23

24
25
26
27
28
29

30
31

(2) Procure stock from small farmers and farmers’ cooperatives and import only
under abnormal conditions determined through consultation with all affected
sectors unless directed otherwise by the President: Provided, that, the quality of
imported rice shall be regular milled rice, thirty-five percent (35%) brokens, or
better; Provided, further, that, in case all or part of the initial reserve is imported,
NFA will have the option to release the imported stocks at a price that will allow it
to procure locally its equivalent volume in palay form to maintain the fifteen (15)

day rice reserve

(3) Release to the market said government rice reserve upon the declaration of a
state of calamity by the President of the Republic of the Philippines: Provided,
that, such declaration shall specifically state that NFA rice reserve is to be
released to the market upon the recommendation of the Secretary of the
Department of Agriculture: Provided, further, that, the release price of said rice
shall be based on the prevailing market price immediately prior to the occurrence
of the calamity.

SEC. 5. Refill of Rice Reserve. - The NFA shall ensure that rice stocks are refilled

in accordance with the provisions of this Act.

SEC. 6. Strengthening Farmers Cooperative.- Net proceeds from the importation
of the rice reserve shall be used to strengthen farmers’ cooperatives in their grains

marketing activities.

Agri-based cooperatives shall be strengthened in order to undertake the farm
business, agri-business such as, but not limited to, production and postharvest facilities,

processing and marketing services.

The Cooperative Development Authority (CDA) in coordination with the local
government units, and other government agencies and in cooperation with people and
non-government organizations (NGOs) shall initiate the transformation of agri-based
cooperatives into entrepreneurs. The government will play the catalytic and supportive
role without intervention into the internal affairs of the cooperatives while ensuring that

they will adhere to sound business principles.

SEC. 7. Appropriation. - There shall be appropriated from the funds of the National
Treasury, a seed money of B 3.70 billion for the initial operations of the Food Security

2


ower une

10

cee
12
13
14
15

16
7
18

19
20
24
22

23
24
25

Fund which shall be constituted into a revolving fund held in trust by the NFA which
shall be used for funding replenishment and as a depository for funds obtained from the
sale/monetization of food security stocks. Thereafter, all such amounts as may be
necessary for the continued operation of said Fund, which shall include the
maintenance and/or increase of the Food Security Rice Reserve, shall be automatically
appropriated in the General Appropriations Act as approved by Congress.

SEC. 8. Monitoring. - The NFA shall regularly review and assess the national palay
and rice situation and, on the bases of the data and information collected, prepare a
report to be submitted to the Office of the President and to both Committees on
Agriculture of Congress

SEC. 9. Implementing Rules and Regulations. - The NFA Administrator shall,
within sixty (60) days from the effectivity of this Act, issue the implementing rules and
regulations of this Act. Copies of such rules and regulations shall be submitted to both
Committees of Agriculture and Food of the Senate and the House of Representatives,

within fifteen (15) days from issuance of the same.

SEC. 10. Separability Clause. - \f any provision of this Act shall be deemed
unconstitutional or invalid, the other provisions not affected thereby shall remain in force
and effect.

SEC. 11. Repealing Clause. - All Acts, Presidential Decrees, Executive Orders
and Administrative Orders, Rules and Regulations and other such issuances or parts
thereof which are inconsistent with the provisions of this Act are hereby repealed or
modified accordingly.

SEC. 12. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in two (2) newspapers of general

circulation.

Approved,