13 AUG 2013 4

Republic of the Philippines ce ~ |

HOUSE OF REPRESENTATIVES (l “ 28 fe) )
Quezon City )

SIXTEENTH CONGRESS
First Regular Session

H.No,__2397

Introduced by Representative Estrellita “Ging” B. Suansing

EXPLANATORY NOTE

This bill seeks to affirm the right of every Filipino to have sufficient food on
their tables. Pursuant thereto, government agencies and corporations directly
responsible for food production should collectively double their efforts to enhance the
country's capacity in rice production; at the same time being responsive to the
globalization of the agricultural market.

In line with the bill's objective, the programs and functions of the National
Food Authority (NFA) shall be realigned to make rice accessible to every Filipino at
all times, even in times of emergencies or calamities. Reorienting the NFA to focus
on maintaining buffer stock requirements for the country is one effective way of
addressing the challenge. NFA, as the bill's envisioned primary agency responsible
for buffer-stock requirements shall review on an annual or regular basis the stock
requirements on the national and local levels. In accord thereto, the NFA shall devise
a system of regularly monitoring these buffer stock levels for anticipatory reasons.

Moreover, the NFA may enter into contracts for the procurement of rice for the
government; Provided, that the volume of said procurement shall not be more than
the strategic 30-day rice buffer stock requirement for‘: the country

The strengthening of the rice industry as a whole shall be the focal point as
the regulation of the same should be properly managed and handled by no-
nonsense government agencies; thereby keeping at a minimum unlawful smuggling
and ‘unaccounted for’ rice supply.


Corollary to this, private sector participation shall also be tapped in the
aspects of importation of rice, subject to appropriate quotas. Production and post-
harvest facilities may also be entered into by the private sector to bolster the promise
of carrying-out the legislative policy of this bill

Aside from other powers and functions, the NFA would be tasked to
coordinate with the Bureau of Agricultural Statistics in the generation of marketing
information, as well as its dissemination, to apprise the public of prevailing market
situation.

Since some of the regulatory and developmental functions of the NFA would
be transferred to the Department of Agriculture, it is very important to note that
the fixing of prices of rice, corn and other food grains should always be
undertaken, while taking into account the prevailing world market prices and
the best interest of the country’s farmers.

The enactment of this bill would benefit the farmers of the Province of Nueva
Ecija, in particular and all the rice and corn farmers nationwide

In view of the foregoing, passage of this bill is earnestly sought.

Rep. ESTRELLITA “GING” B,
1* District, Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

H.No. 2397

Introduced by Representative Estrellita “Ging” B. Suansing

AN ACT
TO STRENGTHEN AND REORIENT THE MANDATE OF THE NATIONAL FOOD
AUTHORITY IN ORDER TO ENSURE FOOD SUFFICIENCY, FOR THAT
PURPOSE RATIONALIZING ITS FUNCTIONS, AND FOR OTHER PURPOSES.

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

CHAPTER 1
GENERAL PROVISIONS.

SECTION 1 . Short Title. - This Act shall be known as the “National Food
Authority Rationalization Act of 2013."

SEC. 2. Declaration of Policy. - Affirming the right of every Filipino to have
access to sufficient food, it is hereby declared the policy of the State to make all
government agencies and corporations directly responsible for food production
oriented toward the attainment of food security and sufficiency, the enhancement of
competitiveness and transparency in the rice economy and to be more responsive to
the increasing globalization of the agricultural market.

SEC. 3. Policy Goals and Objectives, - To carry out the foregoing policy, the
mandate, programs and functions of the National Food Authority (NFA), shall be
reoriented and realigned towards the achievement of the following objectives:

a. Ensure available adequate and accessible supply of rice and other
foodgrains during lean periods and in times of calamity and emergency;

b, Promote regulation aimed at enhancing competitiveness, transparency and
responsibility in the foodgrains marketing industry; and

c. Encourage private sector participation in the Importation of rice and in
production and post-harvest facilities;


SEC. 4. Reorientation of the National Food Authority - The functions of the
NFA shall evolve to focus primarily on maintaining the buffer stock requirements of
the country. All other developmental and regulatory function of the NFA shall be
transferred to appropriate government agencies or local government units unless
otherwise provided by this Act.

SEC. 5. Buffer Stock Management. - The NFA shall be the primary agency
responsible for the management of the buffer stock requirements of the country. For
this purpose, the NFA shall review on an annual basis the buffer stock requirements
of the country at the national and local levels and shall devise a system of regularly
monitoring the buffer stock levels. For the purpose of ensuring that desirable buffer
stock level of the country are met and maintained, the NFA may enter into contracts
for the procurement of rice for government; Provided that the volume of rice
procurement shall not be more than the strategic 30-day rice buffer stock
requirement of the country.

SEC. 6. Other Powers and Functions. -The NFA shall exercise the following
responsibilities, powers and functions:

a. To establish rules and regulations governing private sector importation of rice
and collect fees and charges for said importation;

b. To determine and allocate import quotas among private sector entities and
farmer organizations licensed to engage in rice importation;

c. To coordinate with the Bureau of Agricultural Statistics in the generation of
marketing information and establish and maintain marketing information
dissemination systems in order to keep the public informed on the prevailing market
situation of foodgrains and their substitutes and/or their by-products/endproducts in
different parts of the country; and

d, To inspect foodgrains and their substitutes and/or their by-products, stored
by any person, partnership, corporation, or association, for purposes of taking
inventory kind record of such commodities, and to enter the premises thereof by use
of reasonable means.

SEC. 7. Transfer of Mandate. - The following regulatory and developmental
functions of the NFA are hereinafter transferred to the following:

a. The registration, licensing and supervision of warehouses, whether bonded
or not, and the prescription, imposition and collection of fees and charges relative
thereto to the local government units;

b. The stabilization of prices of rice, corn and other foodgrains at the farmgate
level to the Department of Agriculture, taking into account the prevailing world
market price and the best interest of the farmers;

c. The stabilization of supply and prices of other foodgrains and other basic
food items at the consumer level to the National Price Coordinating Council;


d. The development of more efficient ways, systems and facilities for
harvesting, threshing, drying, storage, milling, packaging, post-harvest handling, and
transporting of foodgrains to the Philippine Rice Research Institute

e. The registration, licensing, and supervision of persons, natural or juridical,
who shall engage or are engaged in the business of. providing goods and services in
support of the different activities involved in the processing, transporting, marketing,
and trading of foodgrains and their substitutes and/or their byproducts/end-products
as well as the imposition and collection of fees, charges, and surcharges in licensing
and regulating the operations of such persons to the Department of Agriculture:

f. The formulation of plans and programs on foodgrains production, storage,
milling and distribution, as well as the coordination for its implementation among
various agencies of the government and the private sector to the Bureau of
Agriculture and Fisheries Product Standardization; and

g, The establishment of appropriate post-production technology and formulation
of plans and programs aimed to reduce post-harvest losses to the Bureau of Post
Harvest Research and Extension.

SEC. 8. Role of the Private Sector. -The importation of rice shall henceforth
be open to the participation of and exclusively undertaken by private sector entities
and farmers’ organizations, subject to appropriate tariffs and quotas; Provided, That
the necessary registration and licensing processes and requirements of the NFA
have been complied with, For this purposes, the policy of open importation and
distribution by all interested private parties shall be fully implemented.

SEC. 9. Transitory Provisions. -Within one (1) year from the effectivity of this
Act, the NFA shall gradually phase out all its rice importation activities to give way to
the entry of private sector entities, especially farmers’ organizations, in rice
importation; Provided, That the NFA shall have completely ceased all its rice
importation functions and activities four (4) years from the time of the enactment of
this Act. For this purpose, the NFA shall, within one hundred twenty (120) days from
the enactment of this Act, establish the necessary rules and regulations for the
importation of rice by the private sector.

To effect a smooth transition, the NFA shall continue to exercise its
developmental and regulatory functions, until the concerned government agencies or
local government units shall have established their plans, programs and rules and
regulations to implement their mandate identified in Section 6 above, which in no
case shall be no longer than one (1) year from the effectivity of this Act.

SEC.10. Rules and Regulations. - The NFA, in consultation with relevant
government agencies and LGUs, farmer organizations and other stakeholders, shall
within one hundred and twenty (120) days from the enactment of this Act, formulate
the necessary rules and regulations to effectively implement the provisions of this
Act.


SEC. 11. Separability Clause. - If, for any reason, any section or provision of
this Act shall be held unconstitutional or invalid, the other section or provision not
otherwise affected shall remain in full force and effect.

SEC. 12. Repealing Clause. - All laws, presidential decrees, executive orders,
proclamations, rules and regulations which are inconsistent with the provisions of
this Act are hereby repealed or modified accordingly.

SEC. 13. Effectivity Clause. - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in at least two (2) newspapers of general
circulation

Approved