Republic of the Philippines
House of Representatives
Quezon City, Metro Manila

Eighteenth Congress
First Regular Session
HOUSE BILL NO. 6116

Introduced by Representative Hector S. Sanchez

EXPLANATORY NOTE

This bill mandates the declaration of the Province of Catanduanes as the
ABACA CAPITAL of the Philippines, it being the topmost abaca-producing province in
the Philippines.

The Abaca is a vital crop to the Philippine economy in a big way. In fact, it is
vital to the world’s economy and environmental care as well. !

The Philippines is the largest producer of Abaca fibers supplying about 87% of
the world’s requirement for the production of cordage, specialty papers (for currency
note, stencil paper, teabag, coffee filter/cup, capacitor and insulation paper, etc.),
textiles, fumiture and fixtures, handicrafts, novelty items, meat casing, cosmetics and
skin care products, grocery bags, composites for automotive and construction and
other industrial applications. ?

The demand for abaca has steadily risen as consumer behavior is slowly shifting
to organic, sustainable and environmentally-friendly materials to address and
minimize the damaging effects of global warming.

According to Philippine Fiber Industry Development Authority (PhilFida),
Catanduanes’ abaca output soared to 9,832.47 MT, twenty-one percent (21%) higher
than the 8,125.46 MT it produced in the January-to-May period of last year bolstering
its reputation as the biggest abaca-producer in the country.

Earnings from abaca fiber, abaca pulp and other abaca products went up by
60.7 percent to $46.97 million during the first four months of the year despite the

! Philippine Abaca Helps In Global Environment Conservation. Department of Agriculture,

Philippine Fiber Industry Development Authority,

http://www. philfida.da.gov.ph/index.php/archived-articles/19-philippine-abaca-helps-in-
lot nvironment-conservation

Ibid



decline in abaca-pulp shipments to Japan, according to figures from the Fiber
Industry Development Authority (FIDA).

Despite the continuous increase in the demand for abaca in the market, little
attention has been given to research and development to increase the quantity,
develop the quality and sustain the production of abaca fiber. This bill seeks to support
studies to acquire best practices to improve productivity and enhance resources for
long-term gains. Moreover, allocation of funds in the form of Abaca Calamity Fund,
needed to rehabilitate abaca plantations in case of loss and damage brought about
by fortuitous events is made mandatory in this bill.

This bill was originally introduced in the 17 Congress by Rep. Cesar V.
Sarmiento which was approved on third reading and was transmitted to the Senate.

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

HECTOR S. SANCHEZ

3 Abaca Shipments Reached $47m in January-April. Department of Agriculture, Philippine Fiber

Industry Devel

http://www. philfc ments-reached-



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Eighteenth Congress
First Regular Session
HOUSE BILL NO.6116

Introduced by Representative Hector S. Sanchez

AN ACT DECLARING THE PROVINCE OF CATANDUANES AS THE ABACA CAPITAL OF

Be it enacte
Congress ass

SECTION 1. SH(

Act."

SECTION 2. DI
to promote a
of Catandua
be given to in
abaca fiber in Catanduanes in order to adequately meet local and global demands.

THE PHILIPPINES AND APPROPRIATING FUNDS THEREFORE

by the Senate and House of Representatives of the Philippines in
bled:

RT TITLE. — This Act shall be known as “Catanduanes as Abaca Capital

LARATION OF POLICIES. - It is hereby declared the policy of the State
\d support the abaca industry in the country, especially in the Province
s. As the country's highest producer of abaca fiber, utmost priority shall
crease the quantity, develop the quality and sustain the production of

In addition, measures must be taken to safeguard the country's abaca industry from
extemal factors brough about by typhoons, earthquakes, pests and various crop
diseases, and

SECTION 3. ABACA CAPITAL OF THE PHILIPPINES. - Pursuant to the abovementioned
public policy,
designation a!

SECTION 4. CI
a year from
Development
State University-College of Agriculture and Fisheries.

SECTION 5. FUNCTIONS OF THE ABACA RESEARCH AND DEVELOPMENT CENTER. - The
Abaca Reseat

a.

ao

Undert
develo

stakeh

. Develo
|. Train fe

researc

other calamities.

he Province of Catanduanes is hereby declared or granted the official
the Abaca Capital of the Philippines.

EATION OF AN ABACA RESEARCH AND DEVELOPMENT CENTER. — Within.
approval of this Act, there shall be created an Abaca Research and
Center in Catanduanes which shall be attached to the Catanduanes

rch and Development Center shall perform the following functions:

ike and conduct researches and technical studies on the
pment, production, management, and marketing of abaca fiber;

. Provide technical assistance and support to abaca farmers and other

\Iders nationwide;

p appropriate technologies beneficial to the abaca industry;

culty members and other research personnel who will undertake
h and development work on abaca;



e. Publish research studies, papers, articles, and other works or writings relating to
abaca R&D on a regular basis with the end goal of benefitting abaca farmers
and other stakeholders nationwide;

f. Coordinate with the Department of Agriculture, the Philippine Fiber Industry
Development Authority, the Provincial Government of Catanduanes, and with
the National Abaca Research Center to consolidate all policies, programs, and
projects on abaca research and development.

SECTION 6. IMPLEMENTING RULES AND REGULATIONS. - The Department of Agriculture
and the Philippine Fiber Industry Development Authority, in collaboration with the
Catanduanes State University, shall issue and promulgate the necessary rules and
regulations to accordingly implement the said Act;

SECTION 7. APPROPRIATIONS. - For the effective implementation of this Act, the
amount of One Hundred Million Pesos (P100,000,000.00) is hereby appropriated from
the unappropriated funds of the National Treasury. Thereafter, such sums as may be
necessary for its continued implementation shall be included in the General
Appropriations Fund.

The amount to be appropriated shall be used primarily to increase the quantity of
abaca plants through planting of more seedlings or increasing hectarage; to develop
abaca fiber quality through the use of technological innovations; to market abaca
fiber and products derived from it, and to support the operation of the Abaca
Research and Development Center in Catanduanes.

SECTION 9. ESTABLISHMENT OF ABACA CALAMITY FUND. - Notwithstanding and
without suspending other fund sources for rehabilitation of abaca farms, an Abaca
Calamity Fund shall be established and shall serve as a special fund for the purpose
of rehabilitation of future damages to the abaca industry in the Province of
Catanduanes caused by typhoons, pests and other calamities.

This fund shall comprise 10% of the total initial appropriation for the implementation of
this Act. Thereafter, 10% of the succeeding annual appropriations for the
implementation of this Act shall be reserved as Abaca Calamity Fund.

SECTION 9. SEPARABILITY CLAUSE. - If any provision of this Act shall be unconstitutional,
any other provision not otherwise affected shall remain in full force and effect.

SECTION 10. REPEALING CLAUSE. - All laws, decrees, ordinances, rules and regulations,
executive or administrative orders, and other presidential issuances inconsistent with
this Act are hereby repealed, amended, or modified accordingly.

SECTION 11. EFFECTIVITIY. - This Act shall take effect fifteen (15) days after publication
in at least two (2) newspapers of general publication.

Approved,