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SENATE OF THE PHILIPPINES 
) 
SIXTEENTH CONGRESS 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 2050 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
The prevailing crisis involving the supply and prices of rice and corn -
our people's staple food - has suddenly become pervasive, it is now a 
serious national concern . 
More so, it has spawned the unwanted emergence and proliferation of 
unscrupulous rice traders and dealers obsessed only with profit, and 
without at all a tinge of nationalism in the manner they conduct their 
business. 
The result is equally, if not far more, disastrous than the ebb supply and 
skyrocketing cost of the commodity itself: the unabated, conflagration-
like spread of the incidence of rice and corn hoarding and profiteering 
whose. debilita,ting effect,. especially among the less fortunate and those 
thriving within the poverty line vortex, is now felt in every nook and 
corner of the land. 
The weight of culled perceptions point to the inadequate, if outmoded, 
penalties provided for, inter alia, the act of rice hoarding, in existing 
legislations such as Republic Act No. 7581, otherwise known as the Price 
Act, as the principal, if overriding reason for the magnified persistence of 
rice hoarding and profiteering. These penalties are now deemed to be 
disproportionate to, and diminish the seriousness or gravity of, the 
prohibited act. Obviously, they need drastic revision if they were to be 
deterrent they were contemplated to be. 
This primordially, is the thesis behind this proposed bill. Note that the 
bill upgrades the seriousness of the prohibited act to accentuate its 


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highly deleterious effect on people's lives more than to justify its 
escalated penal sanction therein. 
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(-~ 
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< <3'-..)- . 
JOSEPH VICTOR G. EJERCITO 


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SENATE OF THE PHILIPPINES 
) 
SIXTEENTH CONGRESS 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 
2050 
Introduced by SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT CONSIDERING RICE OR CORN HOARDING AND 
PROFITEERING DURING OR ON THE OCCASION OF ANY CALAMITY 
OR EMERGENCY DECLARED AS SUCH BY THE PRESIDENT AS 
EQUIVALENT TO ECONOMIC SABOTAGE, PARTLY AMENDING FOR 
THE PURPOSE REPUBLIC ACT NO. 7581, OTHERWISE KNOWN AS 
THE PRICE ACT, AND' FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short Title.,- This Act shall be known as the "Anti-Rice 
or Corn Hoarding and Profiteering Act" 
SECTION 2. Section 3 of Republic Act 7581 is hereby amended to 
read as follows: 
"SECTION 3. Definition of Terms. - For purposes of this Act, 
the term: 
x 
x 
x 
x 
(2a) "ECONOMIC SABOTAGE" IS ANY ACT OR ACTIVITY 
WHICH UNDERMINES, WEAKENS OR RENDERS INTO DISREPUTE 
THE ECONOMIC SYSTEM OR VIABILITY OF THE COUNTRY OR 
TENDS TO BRING ABOUT SUCH EFFECTS AND SHALL INCLUDE, 
INTER ALIA, PRICE MANIPULATION TO THE PREJUDICE OF THE 
PUBLIC ESPECIALLY IN THE SALE OF BASIC NECESSITIES AND 
PRIME COMMODITIES. 


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(3) "Implementing agency" means the department, agency or 
office of the Government, which has jurisdiction over a basic 
necessity or prime commodity as defined in this act, which shall be: 
(a) The Department of Agriculture, with reference to any 
cultural crops, fish and 'other marine products, fresh meat, 
fresh poultry and dairy products, fertilizers and other farm 
inputs. 
(AI) THE NATIONAL FOOD AUTHORITY, WITH REFERENCE TO 
RICE AND CORN; 
x 
x 
x 
x" 
SECTION 3. Section 5 of Republic Act 7581 is hereby amended to 
read as follows: 
"SECTION 5. fllegal Acts of Price Manipulation. - Without prejudice 
to the provisions of existing laws on goods not covered by this Act, it 
shall be unlawful for any person habitually engaged in the production, 
manufacture, ·importation, storage,' transport; distribution, sale or other 
methods of disposition of goods to engage in the following acts of price of 
any necessity or prime commodity: 
(1) 
Hoarding, 
which 
is 
the 
undue 
accumulation 
OR 
STORING/KEEPINQ by a person or combination of persons 
of any basic necessity or prime commodity beyond his or 
their normal inventbry levels AS DETERMINED BY THE 
IMPLEMENTING 
AGENCY 
CONCERNED 
or 
the 
unreasonable limitation or refusal to dispose of, sell or 
distribute the stocks of any basic necessity or prime 
commodity to the general public or the unjustified taking out 
of any basic necessity or prime commodity from the channels 
of production, trade, commerce and industry. There shall be 
prima facie evidence of hoarding when a person has stocks of 
any basic necessity or prime commodity fifty percent (50%) 
higher than his usuaJ, inventory and unreasonably limits, 
n;fuses or fails to sell the same to the general public at the 
time of discovery of the stocks. The determination of a 
person's usual inventory shall be reckoned from the third 
month immediately preceding before the discovery of the 
stocks in case the person has been engaged in the business 
for at least three (3) months, otherwise, it shall be reckoned 
from the tim« he started his business: 
PROVIDED, 
HOWEVER, THAT IN THE CASE OF RICE OR CORN, A 
PERSON'S USUAL INVENTORY THEREOF SHALL BE 


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RECKONED 
FROM 
PRECEDING 
BEFORE 
THE 
THE 
OF 
STOCKSIRRESPECTIVE 
STARTED HIS BUSINESS; 
MONTH 
IMMEDIATELY 
DISCOVERY 
OF 
THE 
THE 
DATE/TIME 
HE 
(2) 
Profiteering, which is the sale or offering for sale of any basic 
necessity or prime commodity at a price grossly in excess of 
its true worth. There shall be prime facie evidence of 
profiteering whenever a basic necessity or prime commodity 
being sold; 
(a) has no price tag; 
(b) is misrepresented as to its weight or measurement; 
(c) is adulterated or diluted OR MIXED WITH LOWER QUALITY 
IN THE CASE OF RICE OR CORN; or 
(d) whenever a person raises the price of any basic necessity or 
prime commodity he sells or offers for sale to the general public 
by more thlm ten percent (10%) of its price in the immediately 
preoeding month; Provided, That, in the case of agricultural 
crops, EXCEPT RICE AND CORN, fresh fish, fresh marine 
products, and other seasqnal products covered by this Act and 
as determined by the implementing agency, the prima facie 
provision shall not apply; and 
x 
x 
x 
' 
x' 
x 
SECTION 4. A new section shall be added and immediately follow 
SECTION 13 of Republic Act 7581 to read as follows: 
"SECTION 13-A. THE ANTI RICE OR CORN HOARDING AND 
PROFITEERING TASK FORCE: COMPOSITION AND FUNCTIONS. -
WITH RESPECT TO RICE AND CORN, THERE SHALL BE CREATED 
AN ANTI-RICE OR CORN HOARDING AND PROFITEERING TASK 
FORCE IN EVERY PROVINCE, CITY.AND MUNICIPALITY TASKED 
WITH MONITORING THE INVENTpRY LEVEL OF ALL RICE OR CORN 
MILLS, WAREHOUSES AND STOCKHOUSES TO DETERMINE THEIR 
RESPECTIVE MONTHLY STOCKS OF RICE OR CORN THEREIN: 
PROVIDED, THAT AN INVENTORY REPORT OF ANY OR EVERY 
MONITORING ACTIVITY SHALL BE RENDERED BY THE TASK 
FORCE TO THE IMPLEMENTING AGENCY CONCERNED, NOT LATER 
THAN 
TEN 
(10) 
DAYS 
FROM 
THE 
CONCLUSION 
THEREOF: 
PROVIDED, FURTHER, THAT THE REFUSAL TO ALLOW THE TASK 
FORCE 
OR 
ITS 
DULY 
AUTHORIZED 
REPRESENTATIVES 
TO 


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CONDUCT MONITORING ACTIVITY IN THESE ESTABLISHMENTS 
SHALL BE PRIMA FACIE EVIDENCE OF THE ACT OF RICE OR CORN 
HOARDING AND PROFITEERING BEING PERPETRATED THEREAT: 
PROVIDED, FINALLY, THAT IF THESE ESTABLISHEMENTS ARE 
OWNED 
BY JURIDICAL PERSONS, CRIMINAL LIABILITY, 
FOR 
VIOLATION OF THIS SECTION SHALL ATTACH TO THE RESPECTIVE 
PRESIDENTS, 
CHIEF 
OPERAT,NG 
OFFICERS 
OR 
MANAGERS 
THEREOF. 
THE ANTI-RICE OR CORN HOARDING AND PROFITEERING 
TASK FORCE SHALL BE COMPOSED OF THE LOCAL CHIEF 
EXECUTIVE OF THE LOCAL GOVERNMENT UNIT CONCERNED, WHO 
SHALL ACT AS ITS CHAIR; ONE (1) REPRESENTATIVE FROM THE 
PROVINCIAL/CITY FIELD/BRANCH OFFICE OF THE IMPLEMENTING 
AGENCY CONCERNED; ONE (1) REPRESENTATIVE FROM THE 
FARMER'S SECTOR; ONE (1) REPRESENTATIVE FROM THE LOCAL 
CONSUMER'S ORGANIZATION/GROUP, IF ANY, AND THE LOCAL 
CHIEF OF POLICE, AS MEMBERS. 
THE OWNER/OPERATOR/MANAGEMENT OF EVERY RICE OR 
CORN MILL, WAREHOUSE OR STOCKHOUSEIS REQUIRED TO 
SUBMIT TO THE TASK FORCE A DULY-CERTIFIED AND SWORN 
MONTHLY REPORT OF ITS INVENTORY OF RICE OR CORN STOCKS; 
PROVIDED THAT, FAILURE TO DO SO SHALL BE PRIMA FACIE 
EVIDENCE OF THE ACT OF RICE OR CORN HOARDING AND 
PROFITEERING BEING PERPETRATED IN THE ESTABLISHMENT 
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CONCERNED. 
SECTION 5. Section 15 of Republic Act 7581 is hereby amended to 
read as follows: 
"Section 15. Penalty for acts of Illegal Price Manipulation. - Any 
person who commits any act of illegal price manipulation of any basic 
necessity or prime' commodity under Section 5 hereof shall suffer the 
penalty of imprisonment for a period of not less than five (5) years nor 
more than fifteen (15) years, and shall be imposed a fine of not less than 
Five Thousand Pesos (P 5,000) nor more than Two Million Pesos (P 
2,000,000): PROVIDED, THAT THE ACTS OF RICE OR CORN 
HOARDING 
OR 
PROFITEERING 
SHALL 
BE 
PUNISHABLE 
BY 
IMPRISONMENT FOR A PERIOD OF NOT LESS THAN TEN (10) 
YEARS NOR MORE THAN TWENTY (20) YEARS AND A FINE OF NOT 
LESS THAN ONE !IUNDRED THOUSAND PESOS (P 100,000) NOR 
MORE THAN 
FIVE MILLION . PESOS IPS,OOO,OOO): 
PROVIDED, 
FURTHER, THAT WHEN THE ACTS OF RICE OR CORN HOARDING 
AND 
PROFITEERING ARE COMMITTED DURING OR ON THE 
OCCASION OF ANY CALAMITY, DISASTER OR ANY EMERGENCY 


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DECLARED AS SUCH BY THE PRESIDENT OF THE REPUBLIC OF 
THE PHILIPPINES, THEY SHALL BE DEEMED EQUIVALENT TO 
ECONOMIC 
SABOTAGE 
AND 
PUNISHABLE 
BY 
RECLUSION 
PERPETUA: PROVIDED, FINALLY THAT WHEN THE OFFENDER IS A 
JURIDICAL PERSON, CRIMINAL LIABILITY SHALL ATTACH TO ITS 
PRESIDENT, CHIEF OPERATING OFFICER OR MANAGER. 
IN ADDITION TO THE PENALTY IMPOSED FOR RICE OR CORN 
HOARDING AND PROFITEERING UNDER THIS ACT, HOARDED RICE 
OR CORN STOCKS SHALL BE CONFISCATED AND FORFEITED IN 
FAVOR OF THE GOVERNMENT. 
SECTION 
6. 
Implementing 
Rules and Regulations. 
-
The 
implementing agency concerned shall promulgate the pertinent rules and 
regulations for the effective implementation of this Act, within sixty (60) 
days from its effectivity. 
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SECTION 7. Separability Clause. - The provisions of this Act are 
hereby declared to be separable from, and independent of, one another 
and that should one or more of such provisions be declared 
unconstitutional, the validity of the remaining provisions shall not be 
affected thereby. 
SECTION 8. Repealing Clause. -
All laws, decrees, executive 
issuances, rules and regulations inconsistent with this Act are hereby 
repealed and I or modified accordingly. 
SECTION 9. Effectivity Clause. 
immediately upon its approval. 
Approved, 
This Act shall take effect