Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 3929

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

EXPLANATORY NOTE

President Rodrigo Roa Duterte signed into law Republic Act No. 11203 on 14
February 2019, otherwise known as “An Act Liberalizing the Importation and
Trading of Rice, Lifting for the Purpose the Quantitative Restriction on Rice
and for Other Purposes”. As a safety measure to cushion the adverse impact
of the influx of imported rice to rice farmers and the rice industry, Section 13
of R.A. No. 11203 establishes the Rice Competitiveness Enhancement Fund
(RCEF) with an annual appropriation of P10 billion for the next six (6) years.

The law specifically allocates the P10 billion RCEF as follows: a) 50% or PS
billion for the procurement of rice farm machineries and equipment to be
distributed as grant in kind to eligible farmers associations, rice cooperatives
and local government units for the purpose of improving farm mechanization;
b) 30% or P3 billion for the development, propagation and promotion of inbred
rice seeds; c) 10% or P1 billion for expanded rice credit assistance with
minimal interest rates; and d) 10% or P1 billion for rice extension services.

Despite the on-going implementation of the identified interventions provided
under Section 13 of R.A. No. 11203, the sudden impact of the influx of
imported ice exhibited the following: a) the average retail price of regular
milled rice has been declining since April with the October 2019 inflation rate
for regular milled rice recorded at -9.7% b) episodes of farm-gate prices of
palay have plummeted to as low as P7 to P10 per kilo in major rice-producing
provinces; c) while the price of rice dropped by 14.50%, the price of palay
dropped more considerably by 26.49% in September 2019 vis-a-vis 2018
prices; and d) the significant drop of farm-gate price of palay consequently
resulted in huge income losses for rice farmers and the industry which is now
estimated to around P50 billion at current prices.


Based on the foregoing, this bill proposes to immediately set-up the Rice
Farmer Financial Assistance as supplementary and transitional safety
measure to serve as compensation to rice farmers who are farming two (2)
hectares and below for the reduction or loss of their farm income arising from
the tariffication of the quantitative import restriction on rice

The fund source shall be the excess tariff revenue from the Bureau of
Customs which has already collected tariff revenues from rice importation
exceeding P10 billion as of October 2019. The Rice Farmer Financial
Assistance shall be distributed as direct cash transfers to affected rice farmers
in RCEF rice-producing provinces.

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

LUIS RAYMUND/“LR, . VILLAFUERTE, JR.


Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. ps28

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT AUTHORIZING THE ADVANCE USE OF
THE BUREAU OF CUSTOMS’ 2019 EXCESS TARIFF REVENUES FROM
RICE IMPORTATION, AND OTHER POSSIBLE SOURCES, AS A SPECIAL
EMERGENCY FUND SETTING-UP THE RICE FARMER FINANCIAL
ASSISTANCE AS DIRECT CASH TRANSFERS TO RICE FARMERS

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

SECTION 1. Emergency Fund for Farmers. The Bureau of Custom’s excess
tariff revenues from rice importation in 2019 and other possible sources are
authorized as a special emergency fund for setting-up the Rice Farmer
Financial Assistance which shall be direct cash transfers to rice farmers.

The distribution of direct cash assistance shall be in accordance with the
procedure, guidelines, and distribution system to be determined by the
Department of Agriculture (DA). In the exercise of oversight powers of
Congress, the DA shall report on a monthly basis to the House of
Representatives and the Senate regarding all pertinent matters relative tothe
utilization of the Fund.

SECTION 2. Separability Clause. If any portion or provision of this Act or the
application thereof shall be declared invalid of unconstitutional, the validity of
other parts or provisions not affected thereby shall continue to be in full force
and effect.


SECTION 3. Repealing Clause. All laws, decrees, executive issuances, rules
and regulations inconsistent with this Act are hereby repealed or modified
accordingly.

SECTION 4. Effectivity Clause. This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspaper of general circulation.

Approved,