Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
Nineteenth Congress
Second Regular Session
HOUSE BILL NO. _______
Introduced by REPRESENTATIVE STELLA LUZ A. QUIMBO
EXPLANATORY NOTE
Rice is a key commodity in the Philippines, accounting for 13.1% of total household
expenditures.
For both macroeconomic and political reasons, it is important to keep rice
prices stable and supply sufficient. Data from the Philippine Statistics Authority (PSA)
showed modest price inflation of rice in 2021 at a national average of -0.65%. However,
beginning January 2022 inflation in rice has steadily been increasing. In the July 2023
Inflation Report of the PSA, the inflation rate of rice stood at 4.2%, an increase from the
2.7% reported in January earlier this year. In actual peso terms, Regular Well-Milled Rice
retailed at 48 pesos per kilo in NCR Markets in August 2023, when during the same month
last year, it sold at 38 pesos per kilo, according to the Department of Agriculture (DA) Price
Monitoring.
These concerns are exacerbated amidst the global El Niño, recently declared by the
Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA)
in July of this year. Other rice-dependent nations within our region such as Vietnam and India
have already made moves to anticipate an eventual shortage, the latter, by declaring export
bans. However, with the continuous onslaught of devastating typhoons in our rice-producing
areas, the Philippines needs to accelerate our efforts to ensure sufficient domestic supply to
keep prices stable. Moreover, some local traders could be taking advantage of the situation
by engaging in hoarding and price manipulation. Thus, there is a need to make available
additional tools for the government to implement stopgap remedies during times of
anticipated shortages or sustained price spikes.
The Philippine Rice Emergency Response Act serves as an additional measure the
government may utilize to address extreme cases of the dwindling supply and soaring prices
of rice. To address supply shortages especially when local production is limited, the
government may encourage more importation by suspending rice tariff rates and allowing the
National Food Authority to import for their buffer stocks. At the same time, to protect local
September 4, 2023
12:52 pm
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farmers and sustain farmgate prices during National Rice Emergencies, the unused
appropriations for different government programs may be reallocated to provide cash
assistance to farmers and other affected sectors. This is especially relevant considering that
for 2022 alone, the total unused appropriations for rice programs within the Department of
Agriculture amounted to 8.54 billion pesos. On the demand side, the bill provides for relief to
consumers by facilitating the sale of rice at subsidized prices and allowing the provision of
direct cash assistance through the Department of Social Welfare and Development. This bill
allows for the expeditious use of unutilized funds to provide necessary relief for Filipino
farmers, other participants in the rice supply chain, and consumers during extreme conditions.
Finally, the bill imposes heftier penalties for hoarding and price manipulation.
As a short-term intervention, this bill seeks to give the government ample authority to
address immediate concerns of a rice shortage, insulating the Filipino public of its adverse
effects. In so doing, it gives the government enough breathing room in its quest to provide
medium and long-term solutions such as productivity enhancement for farmers and provision
of credit and logistical support.
In view of the foregoing, the passage of this bill is earnestly sought.
STELLA LUZ A. QUIMBO
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Republic of the Philippines
House of Representatives
Quezon City, Metro Manila
Nineteenth Congress
Second Regular Session
HOUSE BILL NO. _______
Introduced by REPRESENTATIVE STELLA LUZ A. QUIMBO
AN ACT PROVIDING FOR A NATIONAL RICE EMERGENCY
RESPONSE AND APPROPRIATING FUNDS THEREFOR
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
SECTION 1. Short Title. — This Act shall be known as the “Philippine Rice
Emergency Response Act.”
SECTION 2. Declaration of Policy. — It is the policy of the State to make the
country’s agricultural sector viable, efficient, and globally competitive. The State adopts the
use of tariffs in lieu of non-tariff import restrictions to protect local producers of agricultural
products.
Consistent with the constitutional mandate of protecting Filipino firms against unfair
trade, it is furthermore the policy of the State to employ anti-dumping and countervailing
measures to protect local producers from unfair trade practices, rather than use quantitative
import restrictions.
Towards this end, and in cognizance of the adverse impact of anti-competitive market
forces during the agricultural crisis, the State shall likewise provide increased support to local
farmers.
SECTION 3. State of National Rice Emergency. — The President of the Republic of
the Philippines, in consultation with the Secretary of Agriculture, shall have the authority to
declare a national rice emergency due to any of the following conditions, actually occurring
or in anticipation thereof:
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(i) an extreme shortage in the supply of rice,
(ii) a sustained increase in the price of rice; or
(iii) an extraordinary increase in the price of rice.
Under a national rice emergency, the President shall be given authority to mobilize all
government agencies to respond to the economic crisis.
Further, pursuant to Article VI, Section 23(2) of the Constitution, the President is
hereby authorized to exercise powers that are necessary and proper to undertake and
implement National Rice Emergency response interventions; Provided that the State of
National Rice Emergency shall be in effect for a maximum of 6 months, in which case the
State of National Rice Emergency shall automatically be lifted without any action needed on
the part of the President or of Congress; Provided, further that the power herein delegated to
the President may be withdrawn or terminated by Congress through a Joint Resolution before
the lifting of the National Rice Emergency.
SECTION 4. National Rice Emergency Subsidies. — The President, through the
Department of Agriculture (DA) and its attached agencies, and other government agencies
including the Department of Social Welfare and Development (DSWD), shall provide rice
subsidies, as it deems necessary, primarily to the following groups:
a) To qualified rice farmers, cooperatives, associations, and other agricultural
workers, of a subsidy per kilo of rice produced; Provided, that the computation
of said subsidy be based on the latest reported farmgate price by the Philippine
Statistics Authority prior to the declaration of a National Rice Emergency;
b) To the poorest and affected households, of a rice emergency subsidy;
c) To qualified traders and retailers; Provided, that there is a mandated price
ceiling in place and the mandated price ceiling is lower than the wholesale
price of rice resulting in operating losses.
The sources of funds for each subsidy shall be based on Section 9 of this act.
SECTION 5. Amendments to the Rice Competitiveness Enhancement Fund. —
Section 13 of Republic Act (RA) No. 8178, as amended by RA 11203, is hereby further
amended to read as follows:
“SECTION 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 (₱10,000,000,000.00) for the next six (6) years following the
approval of this Act 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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“xxx
PROVIDED, FINALLY, THAT DURING A STATE OF NATIONAL RICE
EMERGENCY, THE ENTIRE RICE FUND OF THAT FISCAL YEAR
MAY BE USED FOR PROGRAMS THAT WILL RESPOND TO THE
ECONOMIC
CRISIS,
SUBJECT
TO
THE
APPROVAL
OF
THE
DEPARTMENT OF AGRICULTURE,
INCLUDING THE PROVISION
OF CASH ASSISTANCE TO FARMERS AND OTHER AFFECTED
SECTORS, REGARDLESS OF WHETHER TARIFF REVENUES FROM
RICE IMPORTATION EXCEED TEN BILLION PESOS.”
SECTION 6. Limited Import Functions of the National Food Authority. — Section
8 of Republic Act (RA) No. 8178, as amended by RA 11203, is hereby further amended to
read as follows:
“SECTION 8. Maintenance of Rice Buffer Stock. - The NFA shall, in
accordance with the rules, regulations and procedures to be promulgated,
maintain sufficient rice buffer stock to be sourced solely from local farmers,
PROVIDED
THAT,
DURING
A
STATE
OF
NATIONAL
RICE
EMERGENCY,
THE
NFA
MAY
ALSO
IMPORT
TO MAINTAIN
SUFFICIENT RICE BUFFER STOCK, SUBJECT TO THE APPROVAL
OF THE PRESIDENT OF THE REPUBLIC OF THE PHILIPPINES.
SECTION 7. Suspension of Rice Tariffs. — Section 7 of RA 8178, as amended by
RA 11203, is hereby further amended to read as follows:
“SECTION 7. Powers of the President. - Consistent with the Philippine
national interest and the objective of safeguarding Filipino farmers and
consumers, the President is hereby empowered to act with full delegated
authority
subject
to
the
provisions
of
the
CMTA.
in
the
following
circumstances:
“(a) xxx
“(b) In the event of any imminent or forecasted shortage, or such other
situation requiring government intervention, the President is empowered for a
limited period and/or a specified volume, to allow the importation at a lower
applied tariff rate to address the situation. Such order shall take effect
immediately and can only be issued when Congress is not in session; and
PROVIDED,
THAT
DURING
A
STATE
OF
NATIONAL
RICE
EMERGENCY, THE PRESIDENT, UPON CONSULTATION WITH THE
SECRETARY
OF
AGRICULTURE
AND
THE
SECRETARY
OF
FINANCE, MAY PROPOSE TO CONGRESS TO SUBJECT ALL RICE
IMPORTS DURING THIS TIME TO REDUCED OR ZERO TARIFFS;
PROVIDED FURTHER THAT RICE TARIFF COLLECTION TARGETS
HAVE BEEN SUFFICIENTLY MET IN THE SAME FISCAL YEAR;
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PROVIDED
FURTHERMORE,
THAT
IN
THE
CASE
OF
ZERO
TARIFFS, THE LANDED COST OF IMPORTED RICE MUST EXCEED
THE DOMESTIC COST OF MILLED RICE. PROVIDED FINALLY,
THAT IN THE EVENT CONGRESS FAILS TO ACT AFTER FIFTEEN
(15) DAYS FROM RECEIPT OF THE PROPOSAL, THE SAME SHALL
BE DEEMED APPROVED; AND
“(c) xxx
“xxx”
SECTION 8. Reportorial Requirements and Creation of an Oversight Committee.
— Within sixty (30) days after the Rice Emergency has been lifted, the Secretary of
Agriculture shall submit a report to Congress and the Commission on Audit (COA)
containing all acts performed pursuant to addressing the National Rice Emergency, including
a report on the targets and actual accomplishments of government programs, strategies,
plans, and efforts relative to the National Rice Emergency, and such other information which
Congress and COA may require.
For this purpose, the Congress shall establish a Joint Congressional Oversight
Committee composed of the Chairpersons of the Committee on Agriculture of both the
Senate and the House of Representatives, five (5) members each from the Senate and the
House representing the majority and two (2) members each from the Senate and the House
representing the minority, to be designated by the leaders of the majority and minority in the
respective chambers.
SECTION 9. Sources and Uses of Funds for National Rice Emergency Programs.
— The subsidies under the National Rice Emergency program shall be sourced as follows:
a) For cash assistance to qualified rice farmers, cooperatives, associations, and other
agricultural workers, as well as qualified traders and retailers, the primary source of
funding shall come from the appropriated Rice Fund for the current fiscal year and its
unutilized allotments from the previous two fiscal years;
b) For interventions of the National Food Authority, including importation for buffer
stocking and the distribution of rice at subsidized prices, the primary funding shall be
sourced from the unutilized funds from the current and previous two fiscal years of
the National Rice Program;;
c) For the development of the rice inflation subsidy program, the primary funding shall
be sourced from unutilized funds from existing programs to be identified by the
Department of Finance; Provided, that for 2023, the unutilized funds from the
previous two fiscal years of the DSWD’s Unconditional Cash Transfer Program
(UCT) shall be utilized for this purpose; Provided, finally, that the DSWD’s
Assistance to Individuals in Crisis Situations (AICS) Program may be utilized to fund
the rice inflation subsidy program.
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Provided that, thereafter, any such sums as may be necessary for the continued
implementation of this Act shall be charged against the current year’s appropriations of the
DA.
SECTION 10.
Penalties for Acts of Rice Economic Sabotage. — Subject to the
definitions as defined in Section 5 of RA 7581, any person who commits any act of illegal
price manipulation of rice during a national rice emergency shall suffer the penalty of
imprisonment for a period of not less than ten (10) years nor more than thirty (30) years, and
shall be imposed a fine of not less than One Million Pesos (P1,000,000) nor more than One
hundred million pesos (P100,000,000).
Provided, that whenever any violation of the provisions of this Act is committed by a
juridical persons, its officials or employees, or in case of a foreign corporation or association,
its agent or representative in the Philippines who are responsible for the violation shall be
held liable therefor;
Provided, further that in case of aliens, in addition to the penalty provided in this Section, the
offender shall, upon conviction and after service of sentence, be immediately deported
without need of any further proceedings.
Provided, furthermore that any public official or employee who, by reason of his office, with
or without consideration, conspires in the commission or knowingly conceals violations of
any of the provisions of this Act shall likewise be principally responsible for the violation and
shall suffer the additional penalty of permanent disqualification to hold public office.
Provided, finally, that the foregoing criminal penalties shall be without prejudice to the
administrative sanctions which the implementing agency may impose under this Act or under
any other law.
SECTION 11. Implementing Rules and Regulations. — Within thirty (30) days
from the effectivity of this Act, the Department of Agriculture, in consultation with the
National Economic and Development Authority, the Department of Social Welfare and
Development Act, the Department of Trade and Industry, and the Department of Budget and
Management shall promulgate the necessary rules and regulations for the effective
implementation of this Act.
SECTION 12. Separability Clause.
— If any provision of this Act is declared
invalid or unconstitutional, the other provisions not affected thereby shall remain in full force
and effect.
SECTION 13. Repealing Clause. — All laws, decrees, orders, rules, and regulations
or parts thereof inconsistent with this Act are hereby repealed, amended, or modified
accordingly.
SECTION 14. Effectivity. —
This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.
Approved
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