FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 766 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
Rice accounts for 25% of food expenditures of the poorest 30% of the 
Filipino population. Two out of every three poor persons are dependent on 
agriculture for employment and sustenance. Thus, rice prices have a significant 
impact on the well-being of the Filipinos, including small rice farmers who are net 
buyers of rice for household consumption. 
It is evident then that not only is there is an urgent need to revive the rice 
economy - to minimize the country's vulnerability to future external shocks and to 
reduce supply and price volatility - but that in the immediate term, the rice supply 
gap can be minimized at much less cost than what is usually resorted to. Thus, 
this proposed measure seeks to mandate an immediate fertilizer support to 
Filipino farmers of irrigated land in the form of a "buy 2-take 3" subsidy scheme 
where farmer beneficiaries will receive in-kind 3 bags of urea fertilizer per hectare 
of irrigated rice farm actually tilled to supplement 2 bags already privately 
purchased. This will ensure that farmers are able to use the prescribed amount of 
fertilizer per hectare, plus one more, to increase , rice yields. 
In conjunction with this, long overdue reforms and restructuring in the 
National Food Authority will be initiated as a preparatory step toward the long-
term goal of rice self sufficiency for our country, This bill thus paves the way for 
redesigning NFA into a buffer stock management agency that will check and 
maintain the rice reserve requirement of the country. Necessary steps to make 
registration processes more efficient and its corresponding fees more affordable 
shall also be undertaken by the NFA in order to encourage private sector 
participation in rice importation. 
Fertilizer prices have more than doubled over the last two years, making 
optimal usage unaffordable and optimal palay yields unattainable. Combining 
fertilizer support with initiatives to reorient the NFA into a buffer stock 
management agency, away from its importation function, will set the stage to 
correct rice market distortions that have been created by NFA intervention in the 
market over the last three decades. 
In view of the foregoing, urgent approval of this bill is earnestly requested. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 766 
) 
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INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO 
INCREASE 
SHORT 
TERM 
GRAIN 
AVAILABILITY, 
MINIMIZE 
VULNERABILITY TO EXTERNAL PRICE AND SUPPLY SHOCKS AND 
ACHIEVE IMMEDIATE RICE SECURITY, MANDATING FOR THAT PURPOSE 
THE CREATION OF A FERTILIZER SUPPORT MECHANISM AND THE 
RESTRUCTURING AND REORIENTATION OF THE NATIONAL FOOD 
AUTHORITY, APPROPRIATING FUNDS THEREFOR AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
CHAPTER l' 
GENERAL PROVISIONS 
SECTION 1. Short Title - This Act shall be known as the "Immediate 
Rice Security Act of 2010. " 
SEC. 2. Declaration of Policy. The State hereby reaffirms the 
fundamental right of every person to adequate. food and to be free from hunger. 
Toward this end, the State shall provide immediate strategic measures to ensure 
short-term availability of grain, particularly the staple food rice and the sustained 
productivity growth of agriculture. Thus, interventions that ensure the availability 
and accessibility of crucial inputs to farming, especially fertilizer, shall be, carried 
out by the State to maximize rice production ih order to increase the yield and 
meet the national requirement. 
The initiation and execution of key reforms to address crucial rice market 
distortions and to minimize the country's vulnerability to external price and supply 
shocks is hereby further declared a State policy. Pursuant to this, the 
reorientation and transformation of the National Food Authority into a buffer stock 
management agency shall be undertaken and' the implementation of measures 
that make private sector participation in rice importation more feasible and 
accessible shall be prioritized. 
CHAPTER 2 
FERTILIZER SUPPORT PROGRAM 
SEC. 3. Creation of the Fertilizer Support Program. -
As the 
mechanism for extending government fertilizer counterpart to the farmers, a 


Fertilizer Support Program (FSP) is hereby created which shall be implemented 
per cropping season over the next fiscal year immediately succeeding the 
enactment of this Act or for the duration of the rice crisis as determined by the 
President upon recommendation of the Department of Agriculture, whichever is 
longer. 
The Fertilizer and Pesticide Authority (FPA), in coordination with the 
Department of Agriculture, shall be the primary agency tasked with the 
implementation of the FSP. The FPA shall, within sixty (60) days from the 
enactment of this Act, formulate the necessary rules and regulations for the 
implementation of the Fertilizer Support Program' created by this Act. 
SEC. 4. Fertilizer Subsidy Mechanism. - The FSP shall provide "buy-
two-take-three" in-kind urea (46% nitrogen) subsidy to qualified farmers of 
irrigated land duly recognized by and registered with the municipal agricultural 
offices (MAO) of their local government units. Upon presentation of proof of 
procurement of two bags from a FPA registered fertilizer dealer or retailer, the 
FPA deSignated distribution centers shall give out the corresponding amount of 
in-kind urea subsidy to MAO-registered farmer-beneficiaries: Provided, however, 
that the amount of urea granted to each farmer shall not be less than two (2) 50-
kgs. bags or more than three (3) 50 kgs. bags per hectare. 
SEC. 5. Identification of Farmer Beneficiaries. -Each municipal 
agriculture office shall submit a masterlist of qualified farmer-beneficiaries, 
together with the corresponding area of their ricefield to the Department of 
Agriculture. For the purpose of the Fertilizer Support Program created under this 
Chapter, qualified farmer-beneficiaries must: 
a. Be an actual tiller; 
b. Have a fully irrigated riceland; and 
c. Undertake that he will apply the urea in his ricefield. 
SEC. 6. Fertilizer Procurement. -The FPA, pursuant to their charter, shall 
promulgate the necessary rules and regulations for the importation of the 
required urea under the FSP; Provided that procurement shall be conducted 
through the government open competitive bidding in accordance with the 
harmonized procedures on procurement under Republic Act 9184 or the 
Government Procurement Reform Act; Provided further, that the urea imported 
shall be directly shipped to the respective FPA distribution centers. 
SEC. 7. Monitoring and Assessment. -The Fertilizer and Pesticide 
Authority, through their Provincial FPA Coordinators, shall monitor the distribution 
and use of urea under the FSP, as well as fertilizer availability, prices and 
movements. The Department of Agriculture sh1'l1l design a reporting system for 
the regional field units to monitor and assess the impact of the FSP on rice farm 
productivity. The MAFC shall assist the Provincial FPA Coordinators in the 
monitoring and evaluation of the program. 
SEC. 8. Prohibited Acts. -For the purpose of this Chapter, any person 
who engages in any fraudulent transaction or manipulative activity in order to 
influence the outcome of the public bidding process, or engages in simulated or 
fictitious procurement process leading to the awarding of a contract for the supply 
of fertilizers, shall suffer the penalty of imprisonment of not less than twelve (12) 
years and one (1) day nor more than twenty (20) years, without prejudice to 
separate criminal prosecution under Republic Act No. 3019, otherwise known as 
the Anti-Graft and Corrupt Practices Act and other penal laws. 
, 


CHAPTER 3 
REORIENTATION OF THE NATIONAL FOOD AUTHORITY 
SEC. 9. Reforms in the National Food Authority· The National Food 
Authority shall, within one (1) year from the effectivity of this Act, formulate and 
implement guidelines to phase out its participation in rice importation: Provided 
that the NFA shall undertake a comprehensive review of its plans and programs 
and redesign the same to focus on the management and maintenance of proper 
levels of buffer stock requirements of the country. 
SEC. 10. Rice Importation. - The NFA shall establish rules and 
regulations that will make participation in importation of rice more feasible and 
accessible to the private sector. Within sixty (60) days from the effectivity of this 
Act, the NFA shall have amended its guidelines to facilitate and allow for a 
shorter registration process and reduced associated fees to encourage private 
sector, especially farmer organizations' participation in the rice importation 
business. Along with this, the NFA shall implement necessary restructuring in 
their programs in order to make vital information that ensure timely and sufficient 
importation of rice available to duly registered rice importers. 
CHAPTER 4 
FINAL PROVISIONS 
SEC. 11. Congressional Oversight Committee. - For the effective 
implementation of this Act, a Congressional Oversight Committee on Rice 
Security Program is hereby created, hereinafter referred to as the Rice Security 
Program OverSight Committee, to be composed of five (5) members each from 
the Senate and the House of Representatives. The Rice Security Program 
Oversight Committee shall be jointly chaired by the Chairs of the Committee on 
Agriculture and Food of both Houses, with the Chairs of the Committee on Trade 
and Commerce of both Houses acting as vice-cnairs. They shall meet bi-annually 
to monitor and review the status of implementation of the proviSions of this Act. 
For this purpose, the Rice Security Program Oversight Committee shall have the 
power to require the submission of status reports and other necessary data and 
information. 
SEC. 12. Appropriations. - For purposes of the FSP created under 
Chapter 2 of this Act, a special fertilizer support fund, which will be used by the 
FPA in the importation of urea under this program, in the amount of Fifteen Billion 
pesos (Php15,OOO,000,000.OO) per cropping season for the fiscal year 
immediately following the enactment of this Act, shall be specially appropriated, 
released to and administered by the FPA; Provided, that appropriations for the 
FSP shall continue and be maintained for the duration of the rice crisis as 
determined by the President pursuant to Section' 3 of this Act. 
SEC. 13. Rules and Regulations. - The Department of Agriculture, in 
conSUltation with relevant government agencies and LGUs, farmer organizations 
and other stakeholders, shall, within one hundred twenty (120) days from the 
effectivity of this Act, promulgate the necessary rules and regulations to 
effectively implement the provisions of this Act. 
SEC. 14. 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. 


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SEC. 15. 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. 16. 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,