REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, _ 2899

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN I

EXPLANATORY NOTE

Rapidly dwindling rice buffer stock of the National Food Authority has been a major issue in
the past years. There was much commotion in the highest echelons of the National
Government and great alarm to the general public, rice after all was an invaluable part of
everyday Filipino sustenance.

Such shortages spell trouble during times of great natural disasters when the demand for
food, especially rice, is more pronounced. Disaster-stricken areas are highly susceptible to
these shortages and may lead to public disorder. The government must prevent such events
from happening

This proposed measure shall ensure that the NFA maintains fifteen days equivalent of the
national rice consumption, procure rice stocks from small farmers and farmers cooperatives,
and release to the market the rice reserve at the declaration of a state of calamity with a
release price based on prevailing market price immediately prior to the occurrence of the
calamity.”

In view of the foregoing, approval of this measure is earnestly sought.

Magdalo Para Sa Pilipino Party-List


REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. 2899

Introduced by MAGDALO Party-List Representative
HON. MANUEL DG. CABOCHAN II

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

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

SEC. 1.Title.-This Act shall be known as the “Strategic Food Security Rice Reserve
Act.”

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 typhoon, floods, droughts, earthquakes, fires, volcanic eruptions, lahar flows,
and acts of man such as political and/or civil disturbance, and wide-spread civil
unrest.

(b) Government 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 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.

(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%) broken, 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

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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.S. Refill of Rice Reserve.- The NFA shall ensure that rice stocks are refilled in
accordance with the provision of this Act.

SEC.6. Strengthening Farmers’ Cooperative.- Net proceeds from the importation of
the rice reserve shall be used to strengthen farmer’ 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 service.

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 P3.70 billion pesos for the initial operations of the Food Security
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 the issuance of the same.


SEC.10. Separability Clause.-If 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. - This Act shall take effect after fifteen (15) days from its
publication in the Official Gazette or in two (2) newspaper of general circulation.

Approved,