Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
Nineteenth Congress
First Regular Session
HOUSEBELLNo.7916
RECEIVED
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I     DATE03MAY2023      #
•fi?.T'BNIXE         '`€L\4tyn     rs£
Introduced by Representative Claude P. Bautista
EXPLANATORY NOTH
This  bill  seeks  to  institutionalize  the  KADIWA  Program  by  establishing
KADIWA markets in all regions of the country and appropriating funds therefor.
The KADIWA Program was introduced in  1980 under the term of President
Ferdinand  E.   Marcos,   Sr.   It  is  a  marketing  initiative  of  the  Department  of
Agriculture that seeks to empower the farming community by providing a direct
and effective farm-to-consumer food supply chaln.   It eliminates many marketing
layers, allowing farmers to earn higher income from directly selling their products
instead of using trader-intermediaries.  Under the program, basic commodities such
as rice, sugar, cooking oil, coffee, milk, and noodles were sold in KADIWA stores
at subsidized prices.   While the program  ended in  1985, KADIWA was revived
during the onslaught of COVID-19 and helped maintain prices and supply of staple
foods that were affected by the enforcement of community lockdowns.
Recently,  the  country  was  challenged  by  the  issue  of a  lack  of supply  or
shortage  of  essential   commodities  particularly,   onions,  rice  and  garlics.     In
response,   President   Ferdinand   R.   Marcos   Jr.,   through   the   Department   of
Agriculture,   resumed   the   KADIWA      Program   and   introduced   innovations,


including a) KADIWA Retail Selling, which provides farmers and producers areas
to  directly  sell  their  goods  to  consumers  in  government  offices  and  in  places
recommended by the local government units; b) KADIWA On-wheels, which is a
mobile market similar to a rolling store to serve the communities; c) the KADIWA
Express, which taps the private sector and local government units in the transport
and distribution of fresh produce from Agri-Pinoy Centers to designated drop-off
points  in  Metro  Manila;  and  d)  E-KADIWA,  which  is  an  online  marketing
platfom that connects producers and agripreneurs to consumers.   The website is
managed  by  the  DA-Information  Communication  Technology  Service  (ICTS).
Under this strategy, famers may sell their agricultural products online, including
vegetables, rice and fruits, at the suggested retail prices.
By  establishing KADIWA markets in  all  regions,  the provinces  within the
region will be able to  address the agricultural needs of each region.  It may also
provide a mechanism for product interchange with other regions. This will ensure
the availability of agricultural products in the country at affordable prices.
In view of the foregoing, approval of this bill is earnestly sought.
cLAaeBAUT[sTA
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Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
Nineteenth Congress
First Regular Session
HOUSEB|LLNo.7916
Introduced by Representative Claude P. Bautista
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AN ACT
INSTITUTIONALIZING THE KADIWA PROGRAM BY ESTABLISHING
KADIWA   MARKETS   IN   ALL   REGIONS   0F   THE   COUNTRY   AND
APPROPRIATING FUNDS THEREFOR
Be  it  enacted by  the  Senate  and  House  Of Representatives  Of the  Philippines  in
Congress assembled..
SECTION  1.   Srfeorf rzt/c.   -This Act shall be known as the  "Kcrfan4/cr73g scr
Dtwa (KADIWA) Program Act."
SEC. 2.  Dcc/¢r¢#.o# a/Po/I.cj;.  -The State recognizes the role of agriculture
in  nation-building  and  shall  provide  support  to  agriculture  through  appropriate
technology and research and sufficient financial, production, marketing, and other


1      support services.  The  State also recognizes the right of every citizen to adequate
2     food and shall ensure that the people have access to essential food commodities at
3      affordable prices.
4               Towards  this  end,  the  State  shall  craft  policies  and  implement  programs
5      geared towards effective and efficient marketing mechanisms of agricultural  and
6     fisheries products to help farmers earn higher income and ensure the accessibility
7      and  availability  of agricultural  products  at  affordable  prices,  especially  in  poor
8      communities.  For  this  purpose,  the  government  shall  establish  and  maintain  a
9     system for the efficient movement of goods by providing a direct linkage between
1o     fariners  and fisherfolk,  and consumers and establishing markets that will  deliver
11      and ensure the supply, availability, and affordability of agricultural products in all
12      regions of the country.
\3              EEC. 3.   KADIWA Ni Ant At Kita program   -The  "Katuwang sa Diwa at
14     Gawa para sa Masaganang Ant at Mataas na Kita,"  or the  "KADIWA ni Ani At
15      KJ.fcJ, "  an  existing  program  of the  Department  of Agriculture  (DA),  is  hereby
16      institutionalized   to    ensure    stable   food   supply,   promote   locally   produced
17      agricultural  and  fishery  products  nationwide,  and  create  a  direct  and  increased
18      access of consumers to the products.
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1               SEC.   4.     IV¢fl.o#¢J  jHrdDJWZ4   0JJjJjce.     -  A  national   KADIWA  office,
2     hereinafter   referred   to   as   the    "K4DJW:4,"   is   hereby   created   under   the
3      administrative control and supervision of the Department of Agriculture.
4              The KADIWA shall assist farmers and fisherfolks in marketing their products
5      directly  to  the  consumers,  to  ensure  a  stable  food  supply  and  promote  locally
6     produced  agricultural   and  fisheries  products   in  all  municipalities  and   cities,
7      establish linkages of the regional products nationwide, and create a direct access of
8      consumers to the products.
9               SEC. 5.  F#Hcfro#s.  -The KADIWA shall exercise the following functions:
1o               a)      Formulate  and  establish  an  integrated  and  comprehensive  marketing
11      mechanism for the attainment of the objectives of this Act;
12               b)     Formulate a system of networking, coordination and cooperation ainong
13      national   goverrment   agencies,   local   government   units,   farmers,   fisherfolks,
14      cooperatives, and other stakeholders;
15               c)      Subject to the approval of the secretary of Agriculture, arrange funding
16     of major projects from any legitimate source, whether private, government, foreign
17      or domestic, including official development assistance and bilateral or multilateral
18       loans;
19               d)      Identify   and   coordinate   with   proper   government   agencies   in   the
2o      establishment,    construction,    maintenance,    and    operation    of   infrastructure,
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1      equipment,  technology;  systems  or  such  other  requirements  necessary  for  the
2     harvesting,  storage, packaging, processing,  and transportation  and distribution of
3      agricultural and fisheries products for the effective implementation of this Act;
4              e)      Avail of the expertise of any particular employee or group of persons in
5      any  bureau,  office,  or  department  of  the  national  government  or  engage  the
6      services of consultants from the private sector whose services are needed for the
7      effective implementation of this Act;
8              I)      Establish a secretariat of the KADIWA and its regional and local offices,
9      if needed;
1o              g)     Prepare the annual budget of the KADIWA for inclusion in the budget of
11      the DAin the annual GeneralAppropriationsAct; and
12              h)     Perform    such    other    acts    that    are    necessary    for    the    effective
13      implementation of this Act.
14              SEC.   6.  Excc##ve  Di.recfor.     -  The  KADIWA  shall  be  headed  by  an
15      executive director who shall be appointed by the President of the Philippines and
16      shall  be  responsible  for the  efficient  implementation  of this Act.  The  executive
17      director must be  a Filipino  citizen, at least thirty-five  (35)  years of age,  of good
18     moral character and unquestionable integrity, with recognized competence and at
19      least ten (10) years of supervisory or management experience in law, accounting,
2o     marketing, or related fields.  The executive director shall have a term of four (4)
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1      years and may be reappointed to another term but shall in no case serve for more
2     than  eight (8) years.   The  executive director may  only be removed for  cause in
3      accordance   with   the   rules   and   regulations   prescribed   by   the   Civil   Service
4      Commission.
5              SEC. 7.   Powers ¢#d F#"c#.oJls.   -The executive director shall be the chief
6     executive  officer  of the  KADIWA  and  shall  exercise  the  following powers  and
7      functions:
8              a)     Ensure that the KADIWA performs its function in a proper, efficient and
9      effective manner specifically, to cany out the purposes and policies established in
1o     this Act, enforce the rules and regulations issued pursuant to this Act, and primarily
11      be vested with the authority to take charge of the technical and operational phase of
12      theKADIWA;
13               b)     Decide   the   objective,   strategies   and   policies   of  the   KADIWA   in
14      accordance with the provisions of this Act;
15               c)      Determine  the  organizational  structure  of  the  KADIWA,  establish  a
16     human  resource  management  system  based  on  merit  and  fitness,  and  adopt  a
17      rational compensation and benefits scheme;
18               d)     Promulgate    policies    and    guidelines    for    the    harvesting,    storage,
19     packaging, processing, transportation, and distribution of agricultural and fisheries
2o     products, and the imposition and fixing of reasonable charges and fees for services
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1      renderedby the KADIWA;
2               e)      Create  or  abolish  any  division  or unit  and position  therein  as may  be
3      required by the exigencies of the service subject to the approval of the secretary of
4     Budget and Management;
5               f)      Hire  consultants  as may  be  deemed required by the  exigencies  of the
6      service subject to pertinent laws, rules, and regulations;
7               g)     Remove, suspend, or otherwise discipline personnel for a cause in
8      accordance with civil service rules and regulations and other pertinent laws;
9               h)     Accept donations and grants; and
1o               i)      Perform such other functions as may be provided by law.
11               SEC.  8.    Dep#fy  Excc#fz.tJc  DJ.recfors.    -The  executive  director  shall  be
12      assisted by  two  (2)  deputy  executive  directors  for  administration  and  operation,
13      who  shall be appointed by  the President of the Philippines,  a Filipino  citizen,  at
14      least  thirty-five  (35)  years  of  age,   of  good  moral   character,  unquestionable
15      integrity, recognized competence, and a degree holder with at least five (5) years
16      supervisory or management experience in the field of law, marketing, accounting,
17      management or any related fields.
18              AIl other appointments shall be approved by the secretary of Agriculture.
19              SEC. 9. Rcgl.o#¢/ 0/Jices.   -The KADIWA shall establish, in each region, a
2o     KADIWA regional office to be headed by the regional director and manned by the
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1      persormel complement of the regional office of the DA. If necessary, the executive
2     director of the KADIWA, subject to the prior approval of the secretary of Budget
3      and  Management,  may  create  additional  plantilla  positions  in  each  region  to
4     augment  manpower  shortages  as  a  consequence  of  the  additional  duties  and
5      responsibilities of the KADIWA regional office of the DA.
6              SEC;.10.   Provincial, City, and Municipal of f iices.   -The KADTWA sh;haH;Hl
7      establish,  in  all  provinces,  cities,  and  municipalities,  a  KADIWA  office  to  be
8     headed by the provincial, city, and municipal agriculturist, respectively. They shall
9     be assisted by the personnel complement of the offices of the provincial, city, and
1o     municipal agriculturist.  They shall be responsible for the day-to-day operatioii of
11      the  KADIWA  in  their respective jurisdiction.  If there  is  a need  to  increase  the
12     personnel   complement   of  the   offices   of  the  provincial,   city,   and  municipal
13      agriculturist, the governor, city and municipal mayor, subject to the prior approval
14      of their respective provincial, city and municipal councils, may create additional
15      plantilla  positions  to  augment  the  manpower  requirements  of  their  respective
16      offices.
17                SEC.   11.  Org¢„J.z¢fro#¢J  Str#cfrore.     -The  organizational  structure  and
18      staffing pattern of the KADIWA shall be approved by the secretary of Agriculture
19     within  ninety  (90)  days  after  the  effectivity  of  this  Act,  and  the  authorized
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1      positions created therein shall be filled by regular appointments by the president of
2     the philippines or the secretary of Agriculture as the case may be.
3              EEC.12. Local Government units participation. -AIL provinces, cries and
4     municipalities must submit a market feasibility study of their participation in the
5     KADIWA  program  to  their  respective  KADIWA  regional  offices  within  one
6     hundred eighty (180)  days after the approval of this Act,  stating the  list of their
7      local  products,  volume  of production,  population,  supply  and  demand  analysis,
8      suitability and accessibility of the area, road networks, public transportation, peace
9     and  order   situation,  operating  expenses,  cash  requirements,  profitability,   and
1o      infrastructure   requirements   taking   into   consideration   the   harvesting,   storage,
11      packaging, processing and transportation of the agricultural and fisheries products
12      totheKADIWA  stores.
13               AIl barangays shall prepare market feasibility studies and submit the same to
14      their  city  or  municipal  agriculturist  for  consolidation.  The  consolidated  market
15      feasibility studies ofbarangay shall be submitted to the provincial agriculturist and
16     in the same manner, consolidate the same to have a consolidated market feasibility
17      study of cities  and municipalities.   The provincial  agriculturist shall transmit the
18      consolidated market feasibility studies of cities and municipalities to the reedonal
19      office  for  consolidation.     The  regional   director  shall  consolidate  the  market
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1      feasibility studies of provinces and submit the same to the executive director for
2      assessment and evaluation.
3               SEC.   13.    jK4DJWZ4  Progr¢ius.     -  Based  on  the  consolidated  feasibility
4     studies of provinces, the KADIWA shall identify the needed KADIWA programs
5      or  projects  to  be  undertaken  in  each  region,  including  the  need  to  establish
6     KADIWA   outlets,  invitations  to  private persons  or  entities  to  partner  with  the
7     government  in   establishing   and  operating   a  KADIWA   outlet,   transportation
8     facilities for the movement of goods from farm-to-KADIWA  stores, transportation
9     by  bulk  of  agricultural   and  fisheries  products  from   one  region  to   another,
1o     procurement of harvesting, packaging, processing, and storage facilities, and such
11      other programs  or projects necessary  or  incidental  in the  efficient  and  effective
12      implementation of this Act.   The executive director shall submit the programs or
13      projects identified by each region to the secretary of Agriculture for approval and
14      eventual implementation by the KADIWA.
15               SEC.14.   Mo"z+arc.#g ¢#d Etl¢/#¢fl.o#.   -The DA shall  assess the  overall
16     performance  of the KADIWA Progran  and  shall  promulgate policies,  rules  and
17      regulations for its improvement.
18              Participants and project partners operating a KADIWA outlet are required to
19      submit an annual report to the municipal or city agriculturist, who shall collate and
2o      submit a summary to the provincial agriculturist.  The provincial agriculturist shall
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1      consolidate  the  armual  report  per  municipality  and  submit  it  to  their  regional
2      director  for  consolidation,  and  the  regional  director  submits  the  consolidated
3      regional  annual report to  the KADIWA.  The  executive director consolidates the
4     regional armual reports and prepares the overall annual report to be submitted to
5     the Secretary of Agriculture.   The annual reports shall form part of the DA report
6     on the KADIWAprogram.
7               The DA  shall  submit the report to  the President of the Philippines,  Senate
8     President,   Speaker   of   the   House   of   Representatives,   and   Committees   on
9     Agriculture and Food in both houses of Congress.   The report must be published
1o      and regularly updated for the information of the public.
11               SEC.15.  H4DJJr4 F##d.  -The KADIWA fund is hereby created to be used
12      exclusively  for the  implementation  of the  projects  and  activities  under  this Act.
13      The KADIWA fund  shall be  administered by the DA under existing government
14     budgeting,  accounting,  and  auditing  rules  and  regulations.    The  KADIWA fund
15      shall be sourced from the following:
16               a)      The initial amount of one hundred million pesos (P100,000,000.00) to be
17     taken from  the  General Appropriations Act (GAA)  and other unutilized funds or
18      savings from the GAA of the preceding year, in case the GAA was approved before
19     this law is enacted.  Such amount shall be released to the DA after the effectivity of
2o     this Act.  The yearly budget for the KADIWA fund shall double yearly for the next
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1      four(4)years;
2              b)      Income generated by the KADIWA; and
3              c)      Loans,  grants,  bequests,  gifts,  and  donations  whether  from  local  or
4      foreign sources.
5               The   DA   is   directed   to   include   resource   requirements   for   nationwide
6     implementation   of  KADIWA  in   its   annual   budget  priority   and   such   other
7     appropriate  funding  sources  as  the  Secretary  of Budget  and  Management  may
8      identify.
9              The LGU shall put up  counterpart funds in cash or in-kind, or both, which
1o     may be sourced from the internal revenue allotment of the LGU.   Members of the
11      community and private individuals or institutions, including foreign organizations,
12      may also contribute to the KADIWA fund.
13              The secretary of Agriculture, with the approval of the secretary of National
14     Economic Development Authority and the secretary of Finance, is hereby granted
15      the  authority to enter into loan agreements with foreign financial  institutions for
16      purposesofthisAct.
17              SEC.16. P¢rf„cr I.# JmpJe#!e"fofI.o#.   -The Department of the Interior and
18     Local Government shall be a key partner agency in the development of policies
19     and technologies for the implementation of this Act to strengthen the participation
2o     of the  LGUs,  institute  policy  and  structural  reforms,  and  ensure  direct linkages
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1      between farmers and fisherfolk with the local government.   It may also initiate the
2     crafting  of projects,  activities,  and programs  aligned  with  community-identified
3      needs  and  priorities  involving  the  KADIWA,  including  a  massive  information
4      campaign about the program, especially in rural communities.
5               AIl   relevant   bureaus,    offices,    agencies,    and   instrumentalities    of   the
6     government   shall   likewise   render   the   necessary   support   for   the   effective
7      implementation of this Act.
8               SEC.    17.   4prroprz.¢fj.o#s.       -   The   amount   necessary   for   the   initial
9     implementation of this Act shall be charged to the current year's appropriations of
1o     the Department of Agriculture.  Thereafter, such sum as may be necessary for the
11      continued  implementation  of this  Act  shall  be  included  in  the  armual  General
12      Appropriations Act.
13              EEC.  t8.  Ii'xplementing Rules  and Regulations.   -Within six (6) months
14     from the effectivity of this Act, the Secretary of Agriculture shall, in coordination
15      with the secretary of the Interior and Local Government, promulgate the necessary
16     rules and regulations for the effective implementation of this Act.
17               SEC.   19.  Repe¢JI.ng  Cl¢#sc.     ~  All  laws,  presidential  decrees,  executive
18      orders, and rules and regulations contrary to or inconsistent with the provisions of
19      this Act are hereby repealed or modified accordingly.
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1               SEC.  20.  EjjTec#.tJrty.   -This Act shall take effect fifteen (15) days after its
2     publication in the oj7ij}cz.c7/ Gczzeffe or in a newspaper of general circulation.
3               Approve d,
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