NINETEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session
Sxual:
o( 11)0 feftrctaiP
24 MAR 11 P2 SO
SENATE
Senate Bill No. 2601
Introduced by Sen. CYNTHIA A. VILLAR
AN ACT
AMENDING SECTION 13 OF REPUBLIC ACT NO. 11203, OR "AN ACT 
LIBERALIZING THE IMPORTATION, EXPORTATION AND TRADING OF RICE, 
LIFTING FOR THE PURPOSE THE QUANTITATIVE IMPORT RESTRICTION ON 
RICE, AND FOR OTHER PURPOSES"
EXPLANATORY NOTE
The Philippines is a primarily an agricultural nation. Our country is blessed with vast 
agricultural lands and rich natural resources. When properly utilized, various crops can 
be produced, resulting to an increased local production that generates income and 
thereby, making our nation self-sufficient.
For many generations, the agricultural sector has been a significant source of 
livelihood for Filipinos. In fact, it plays a major role in boosting the Philippine economy.
Thus, in 2019, the Rice Tariffication Law (RTL) was passed to make the agricultural 
sector globally competitive. It is a policy reform that removed the quantitative 
restrictions or rice and replaced it with tariffs, creating a rice fund in the amount of Php 
10 Billion per year to directly benefit the farmers by addressing the issues of 
competitiveness and negative effects of inflow of cheaper rice imports of similar 
quality.
When RTL started, inbred palay production per hectare has been consistently going 
up from 3.66 ton per hectare in 2019, 3.95 tons in 2020 and in 2023, 4.19 tons, 
because of the distribution of high quality inbred seeds to farmers, by PhilRice.
Through the RTL, the Philippine Rice Research Institute (PhilRice) is mandated to 
lead the Rice Competitiveness Enhancement Fund (RCEF) Certified Seed 
Development, Propagation and Distribution Program and co-lead the RCEF Extension 
Program. The RCEF Rice Program has also synergized and strengthened the local 
farmers into seed producer cooperatives to support and participate in the nationwide 
high quality seed production and trade. It has established 756 PalaySikatan 
Technology Demonstration sites in 404 cities and municipalities located in 58 
provinces under its extension service mandate.


Some of the target goals of PhilRice are to conduct in-depth research and 
development on better palay inbred varieties and to produce breeder, foundation, and 
registered seeds; and better distribution system and improve relationship with LGUs 
to optimize implementation efficiency.
At present, there are 164 inbred seed varieties and 15 new varieties developed by 
PhilRice under RCEF.
In addition, one of the key factors in enhancing farm productivity is through showcasing 
need-based and location-specific farming strategies and agricultural enterprise. The 
role of the private sector in providing extension services is very important. Thus, from 
September 2019 to December 2023, the Agricultural Training Institute (ATI) certified 
a total of 319 RCEF Learning Sites for Agriculture (LSAs); 235 of which received 
financial assistance.1
With respect to the trainings conducted under the RCEF-Rice Extension Services 
Program (RESP), a total of 10,651 training activities benefiting 251, 971 participants 
were facilitated. Related thereto, under the Farmers’ Field School (FFS) Production of 
High Quality Inbred Rice training of TESDA, from 2019 to January 2024, a total of 
171,412 participants graduated.2
The Philippine Center for Postharvest Development and Mechanization (PhilMech) 
distributes Php5-Billion worth of farm machinery and equipment (FME) to qualified 
farmers’ cooperatives and associations (FCAs) yearly. From 2019-2023, the total 
budget allocated for the RCEF Mechanization Program was 25 Billion Pesos. As of 
December 31, 2023, the cumulative obligated amount was Php 24.87 Billion or 83%. 
Of the total obligated, PhilMech’s total disbursement was 15.86 Billion or 64%.3
Under the credit component, where Php 1 Billion is allotted yearly, since 2019, the 
Developmental Bank of the Philippines (DBP) and Land Bank of the Philippines (LBP) 
have received Php 2.5 Billion each. The total credit assistance given by DBP 
amounted to Php 2.2 Billion or 91%. This assistance has directly helped and impacted 
a total of 29,853 individual farmer beneficiaries.
On the other hand, LBP lent a total of Php 2.474 Billion to 14,831 farmer beneficiaries 
and 271 cooperatives or 98%.4
With these significant developments, the Rice Tariffication Law is a game-changer. 
Due to the tariffs collected on imported rice, the price of rice stabilized and it was 
instrumental to the significant drop in inflation. More importantly, it improved the lives 
of the farmers as due to mechanization, seed distribution, extension services, and 
cash assistance support, they have become more competitive and productive.
1 ATI Rice Competitiveness Enhancement Fund - Rice Extension Services Program Cumulative Accomplishments 
as of January 31,2024, Agricultural Training Institute.
2 Id.
3 Report Update of Philippine Center fir Postharvest Development and Mechanization on RCEF as of December 
2023.
4 Status Report of Landbank on the Expanded Rice Credit Assistance under the Rice Competitiveness 
Enhancement Fund (As of 31 December 2024).


However, the target set at the start has not been fully realized and would take further 
support to rice farmers to make our country rice sufficient and to better their lives.
In view of the foregoing, the extension of the Rice Tariffication Law for six (6) years is 
necessary and the passage of this bill is earnestly sought.
CYNlpHIA a. villar


NINETEENTH CONGRESS OF THE REPUBUC 
)
OF THE PHILIPPINES 
)
Second Reg jiar Session 
)
cf t'»c £ . :vrtavi>
24 mar 11 P 2 SO
SENATE
Introduced by Sen. CYNTHIA A. VILLAR
AN ACT
AMENDING SECTION 13 OF REPUBLIC ACT NO. 11203, OR "AN ACT 
LIBERALIZING THE IMPORTATION, EXPORTATION AND TRADING OF RICE, 
LIFTING FOR THE PURPOSE THE QUANTITATIVE IMPORT RESTRICTION ON 
RICE, AND FOR OTHER PURPOSES"
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
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SECTION 1. Section 13 of Republic Act No. 8178, as amended by Republic Act
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No. 11203, is hereby amended to read as follows:
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"Sec. 13. Rice Competitiveness Enhancement Fund. - There is hereby created 
a Rice Competitiveness Enhancement Fund, herein referred to as the 'Rice 
Fund'. The Rice Fund shall consist of an annual appropriation of Ten billion 
pesos (P10,000,000,000.00) [for the next six (6) years following the-approval 
of-this-Ac-t] UNTIL THE YEAR 2031 and shall be automatically credited to a 
Special Account in the General Fund of the National Treasury which shall be in 
place within ninety (90) days upon the effectivity of this Act.
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"Provided, furthermore, That if the annual tariff revenues from rice importation 
exceeds Ten billion pesos (P10,000,000,000.00) in any given year [within the 
six (6) year period following the effectivity of this Act] UNTIL THE YEAR 
2031, the excess tariff revenues shall be [earmarked by Congress and included


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in the General Appropriations Act (GAA) of the following yoor] USED FOR THE 
FOLLOWING:
[(o) Rice Farmer Financial Assistance—A portion of the exeess rice tariff
revenues shall-be-feleased to the DA and shall be used for prevldtn§
direct financiol ossistance to-rice formers who are forming-two (2)
hectares-and below-regordless of whether they continue forming rice or
not os compensation for the projected reduction or loss of form incorr>e
orising from the tariffication of the quontitotive import restrictions on
Fleet
(b) Titling of Agricultural Rice Londs—A portion of the excess rice tariff
revenues shall be released to the Department of Agrarian Reform (BAR),-
Department of Environment end Natural Resources (DENR) and Land
Registration Authority (LRA), and shall be used for the subdivision-and
titling -of agricultorot-Fice lands or parts thereof-aworded to farmer-
beneficiories under the Comprehensive Agrarian Reform Program (CARP)
and other similar programs of the governmentt
"(c) Expanded Crop-Insurance Program on Rice—A portion of the excess
toriff revenues-shall-be released to the Philippine Crop Insurance
Corporation (PCIC) and shall-he used for the provision of crop-insurance
lO qualified rice farmer-beneficiaries under -its—existing ogricultural
insurance programs; and
"(d) Crop Diversification Program----- A portion of the excess--tariff
revenues shall be released to the DA and shall bc-uscd-foF-productivity-
errhoF^emont-pr-egFams for rice farmers seeking to diversify production
towards-other crops].
(a) RICE FARMER FINANCIAL ASSISTANCE - DIRECT CASH 
ASSISTANCE SHALL BE PROVIDED TO RICE FARMERS TILLING TWO 
(2) HECTARES AND BELOW, ESTIMATED AT 2,400,000.00 MILLION 
FARMERS.
THE DEPARTMENT OF AGRICULTURE (DA) IS HEREBY 
AUTHORIZED TO USE THE MONIES FROM THE SAID EXCESS TO 
DIRECTLY PROVIDE CASH ASSISTANCE TO FARMERS WHO ARE


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TILLING TWO (2) HECTARES AND BELOW OF RICE LAND UNTIL THE 
YEAR 2031;
(b) SMALL WATER IMPOUNDING PROJECT - IN ORDER TO 
ENSURE THAT RICE AREAS WILL HAVE ADEQUATE WATER SUPPLY IN 
THE FACE OF EL NINO AND SO THAT WATER RESOURCES WILL BE 
EFFECTIVELY UTILIZED FOR THE IRRIGATION OF RICE LANDS ALL 
YEAR-ROUND, AN ANNUAL APPROPRIATION OF TWO BILLION PESOS 
(P2,000,000,000.00) FOR THE NEXT SIX (6) YEARS FOLLOWING THE 
EFFECTIVITY OF THIS ACT SHALL BE ALLOCATED FOR SMALL WATER 
IMPOUNDING PROJECTS (SWIP) AS EARTHEN DAMS, WITH 
STRUCTURAL HEIGHTS OF NOT MORE THAN THIRTY (30) METERS 
AND A VOLUME STORAGE NOT EXCEEDING FIFTY (50) MILLION 
CUBIC METERS, TO HARVEST AND STORE RAINFALL AND RUN-OFF 
FOR IMMEDIATE AND FUTURE USE TO SERVE AN AREA OF 25 
HECTARES TO 150 HECTARES, WITH THE BUREAU OF SOILS AND 
WATER MANAGEMENT (BSWM) AS THE IMPLEMENTING AGENCY; 
AND
(c) COMPOSTING FACILITY FOR ORGANIC FERTILIZER - TO 
ENCOURAGE ORGANIC FARMING AND THE USE OF READILY 
AVAILABLE BIODEGRADABLE WASTE, ENSURE THE PRODUCTION OF 
SAFE AND QUALITY RICE, PREVENT THE FURTHER DEGRADATION OF 
SOIL, AND REDUCE DEPENDENCE ON CHEMICAL FERTILIZER, AN 
ANNUAL APPROPRIATION OF TWO BILLION PESOS 
(P2,000,000,000.00) FOR THE NEXT SIX (6) YEARS FOLLOWING THE 
EFFECTIVITY OF THIS ACT SHALL BE ALLOCATED FOR THE 
ESTABLISHMENT OF COMPOSTING FACILITIES TO BE PROVIDED BY 
BSWM TO RICE FARMER COOPERATIVES AND ASSOCIATIONS.
THE BUREAU OF CUSTOMS (BOC) IS HEREBY MANDATED TO 
DIRECTLY REMIT TO THE DA AND THE BSWM THE SAID EXCESS 
FUNDS.
THE BOC, DA, AND BSWM SHALL, AT THE END OF EACH YEAR, 
SUBMIT SEPARATE REPORTS TO CONGRESS, THROUGH THE SENATE


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COMMITTEE ON AGRICULTURE, FOOD AND AGRARIAN REFORM AND
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THE HOUSE COMMITTEE ON AGRICULTURE AND FOOD, ON THE
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REMI iTANCE OF FUNDS AND THE ACTUAL FUND DISBURSEMENT FOR
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THE YEAR.
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The (congressional Oversight Committee on Agricultural and Fisheries
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Modernization (COCAFM) shall conduct a periodic review of the use of the Rice Fund.
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SEC. 2. Separability Clause. - If any provision of this Act is declared
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unconstitutional, the remainder thereof not otherwise affected shall remain in full force
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and effect.
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SEC. 3. Repealing Clause. - Such other laws, presidential decrees, executive
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orders, letters of instruction, proclamations or administrative regulations that are
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inconsistent with the provisions of this Act are hereby repealed, amended, or modified
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accordingly.
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SEC. 4. Effectivity. - This Act shall take effect after fifteen (15) days following
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the completion of its publication in the Official Gazette, or in a newspaper of general
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circulation.
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Apprc-'ed,