Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

ae ef
/” RECEIVED

16" Congress. one, O1 JUL 2013

First Regular Session

473
House Bill No.” | %

Introduced by
HON. AGAPITO H. GUANLAO

EXPLANATORY NOTE

The continuing decline in the support price for paddy rice (Palay) in the past has pushed
some farmers to explore the possibility of shifting to other crops so they can improve
their profitability. It was observed that many of them tried planting fruit crops with a hit-
and-miss system. Some relied on other farmers to teach them how to propagate
Philippine fruits necessarily ascertaining their market potentials.

It was observed that even government has a very lax policy on fruits production and
processing. This can be the reason why we have a hard time competing in the world
market. Many of our farmers do not know how. They just rely on traders to tell them
what fruits are in demand not only in the country but most of all in the export market.

This bill, therefore, seeks to consolidate the efforts of government and the private sector
in developing the Philippine fruits industry and trade do that its full potential can be
realized. There is no question as to the dollar-earning potential of Philippine fruits in the
export market. Big commercial growers of Philippine fruits abound in Mindanao. It is
unfortunate, however, that small farmers/ growers, especially in Luzon and the Visayas,
do not benefit much from this industry

Indeed, Filipinos boast about the abundance of Philippine fruits, particularly in summer
months. It is just lamentable that there are no enough processing plants to convert
surplus harvest to other by-products like wine and fruits, preserves. It is high time that
the state consider the development of the Philippine fruit industry and trade as part of
country’s agriculture and fisheries modemization program. With the creation of
Philippine fruit Industry and Trade Authority of PhilFruits, there will be a single
government agency tasked to oversee the Philippine fruits industry and trade. There will
be no more reason that production of fruits will be on a hit-and miss system. This will be
afford a better opportunity for the small farmers/ growers, more importantly the agrarian
reform beneficiaries in the mountainous areas, to maximize the profitability of their land-
holdings by cultivating and producing Philippine fruits.

This measure was filed before the 15” Congress as House Bill 1775. Definitely, the
relevance of this proposed piece of legislation remains as the improved income of
Philippine fruits farmers/ growers will translate to better living conditions and economic
benefits to the nation. Thus, the approval of this bill is earnestly solicited.

HON. AGAPITQ}. GUANLAO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

16" Congress
First Regular Session

4

49
House Bill No. Je)

Introduced by
HON. AGAPITO H. GUANLAO

AN ACT CREATING THE PHILIPPINE FRUITS INDUSTRY AND TRADE
AUTHORITY, VESTING IT WITH REGULATORY POWERS AND APPROPRIATING
FUNDS FOR THE PURPOSE

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

SECTION 1. Title.— This Act shall be known as the “Philippine Fruits
Development Act of 201°,

SECTION 2. Declaration of Principles and Policy Consistent with the policy of
Government on developing and modemizing agriculture and fisheries as the
cornerstone of the Philippine economy to attain food security and cognizant of the
potential contribution of growing Philippine Fruits to food production not only, for
domestic consumption but also for the export market, it is hereby declared a policy of
the state to develop the industry and trade of Philippine fruits. With his, the State shall
safeguard the interest of small farmers/ growers of Philippine fruits.

The State shall provide the necessary support to the Philippine fruit industry
development through appropriate services in production, research, extension and
training, financial assistance and other support services. It shall prescribe and strictly
enforce regulations and quality control standards needed to safeguard the interest of
Philippine fruit farmers/ growers

The State shall fully exploit the industry's potential to increase the farmers’
income, promote the export market and generate foreign exchange revenues.

SECTION 3. Creation of the Philippine Fruits Industry and Trade Authority -
There is hereby created a government corporate body that shall henceforth be known
as the Philippine Fruits and Trade Authority or PhiliFruits

SECTION 4. Objectives. The PhilFruits shall have the following objectives:

Ae To improve the quality of life of Filipino farmers through the growing,
production and processing of Philippine fruits in suitable areas;

2 To ensure the profitability of Philippine fruit farmers through their adoption
of proven farm practices and technology; and

3. To promote the trade of Philippine fruits not only in the country but also in
the export market

SECTION 5. Powers — The PhilFruits shall have the following powers:


1. To administer and regulate the Philippine fruit industry in the country;

2. To incur any obligation or enter into contract with any person, material or
juridical, domestic or foreign, essential to the proper administration of its
affairs and the accomplishment of its purpose and objectives.

3. To own, purchase, lease., mortgage, encumber or otherwise dispose of
real and personal property in accordance with its purpose and objectives:

4. To accept and receive financial and other support from private and other
sources for the development and promotion of the Philippine fruit industry;

5. To promulgate and enforce rules and regulations on the production of
Philippine fruits;

6. To impose administrative sanctions and/ or violation of the rules and
regulations it issued;

7. To establish, operate and maintain testing and experimental stations on
Philippine fruits, including the identification and preservation/ conservation
of endangered species;

8. To register and accredited farmers/ growers, processors, traders/
exporters their associations/ confederation and other associations
involved with the Philippine fruits industry and trade; and

9. To undertake measures to ensure that small farmers receive a fair price
for their produce.

SECTION 6. Functions.— The PhilFruits shall have the following functions:

1. To undertake research studies on all aspects of the industry, including
pilot studies, and ensure strong and collective linkages between research
and extension;

2. To package and disseminate recommended production technologies to
guide farmers/ growers in the country;

3. To design and implement a specialized extension program on Philippine
fruits Production, and other training and communications program for
manpower development in the various aspects of industry operations;

4. To promulgate and enforce rules and regulations to govern the production,
processing and trade of Philippine fruits, including those on phyto-sanitary
practices and other quarantine measures;

5. To identify suitable areas for the growing of Philippine fruits and promote
production in such areas;

6. To support efforts of Philippine fruits farmers/ growers in organizing
themselves into farmer's association/ cooperatives, thus, registering and
accrediting them;

is To produce breeder, foundation and registered stocks; set and enforce
standards and procedures for seed production and marketing; supervise
certified seed production by private growers;


8. To provide assistance to small farmers/ growers in the marketing of their
produce and in doing so, to come up with roster of registered processors,
traders and other participants in the Philippine fruits industry and trade;

9. Tedesign and implement all industry monitoring and information system;

10. To undertake industry manpower development;

11. To assist farmers in sourcing funds for the production of Philippine fruits;

12. To conduct regular consultation with the Philippine Fruit farmers, growers,
and all other sectors involve in the industry;

13, To design and administer a package of incentives to promote private
sector investments in the Philippine fruits industry;

14. To develop the full potential of the export of Philippine fruits; and
15. In general, to undertake all other functions as may be necessary to ensure

the success of the Philippine fruits industry and promote they interests of
small farmers/ growers.

SECTION 7. The Governing Board of the PhilFruits.— The PhilFruits shall be
govern by a Board of Directors composed as follows:

1. Secretary of Agriculture, as Ex- officio Chairman;

ie Executive Director, Philippine Fruits Industry and Trade Authority, as ex-
officio Vice Chairman;

3. Secretary of Trade and Industry;

4. Secretary of Environment and Natural Resources;
5. Director, Philippine Council for Agriculture and Resources Research and
Development;

6. One (1) representative from among the Government financial institutions
to be appointed by the President of the Philippines upon the
recommendation of the Secretary of Agriculture;

7. One (1) representative from among the rural financial/ cooperative
institutions to be appointed by the president of the Philippines upon the
recommendation of the Cooperatives Authority;

8. One (1) representative from among the Philippine corporations in the fruit
industry appointed by the President of the Philippines upon the
recommendation of the DTI Secretary; and

9. Three (3) representatives from the Philippine fruits farmers/ growers, one
each from Luzon, the Visayas and Mindanao, to be appointed by the
President of the Philippines upon the recommendation of farmers
associations in each area.


SECTION 8. Term of Office of the Members of the Governing Board — Unless
sooner removed for cause by their respective associations, appointed members of the
governing Board shall hold office for the period of four (4) years from the date of their
appointments.

SECTION 9. Powers and Functions of the Board The Governing Board shall
act as the policy making body of PhilFruits to formulate policies, promulgate regulations
and prescribe rules to attain purposes and objectives

SECTION 10.Organization— An Executive Director who shall be appointed by
the President of the Philippines, upon the recommendation of the Secretary of
Agriculture shall be the Chief Executive Officer of PhilFruits. He shall be assisted by
three (3) Deputy Executive Directors to be appointed by the President upon the
recommendation of the Secretary of Agriculture.

The Board shall determine and create the organizational structure of PhilFruits to
achieve its objectives and shall appoint all the other officers of PhilFruits.

SECTION 11.Promulgation of Rules and Regulations.— The Board of Directors of
PhilFruits shall promulgate rules and regulations for the full implementation of this Act
within six (6) months of its effectivity. Such rules and regulation and shall be amended
by the Governing Board from time to time as it may deem appropriate.

SECTION 12.Penalty Clause. — The following are prohibited in this Act and shall
be penalized accordingly:

1, Punishable by imprisonment of six months and one day to six years and/
or fine of one hundred thousand pesos (Php100,000.00);

a. Non-registration of farms measuring three hectares or’more planted to a
‘single specie planted contiguously regardless of the area;

b. Illegal importation/ smuggling of foreign fruits with a quantity of at least
one twenty-footer container van;

2 Punishable by imprisonment of one month and one day to six months and/
or fine of fifty thousand pesos (Php50,000.00):

a. Non-registration of fruits processing plant for commercial purpose;

b. Illegal importation of breeding stocks/ seeds of foreign fruits or foreign
varieties of Philippine fruits and illegal export of planting stocks of
Philippine fruits

3. Punishable by imprisonment of one day to thirty days and /or fine of
twenty thousand pesos (Php20,000.00):

a. Illegal trade of the Philippine fruits;

b. Illegal cutting of a Philippine fruit tree.

SECTION 13.Appropriation. — There is hereby authorized to be appropriated
from the Agricultural Competitiveness Enhancement Fund (ACEF) not otherwise
appropriated, the sum of Five Hundred Million Pesos (Php500,000,000.00) necessary to
carry into effect the provision of this Act: Provided, that thereafter, the budget for
PhilFruits shall be included in the General Appropriations Act.


SECTION 14.Separability Clause — If, for any reason, any section of provision of
this Act shall be held unconstitutional, other provision hereof shall not be affected and
shall remain in full force and effect:

SECTION 15.Suppletory Application of Existing Legislation All existing
legislation regarding the Philippine fruits industry and trade not inconsistent with this law

shall have suppletory effect.

SECTION 16.Repealing Clause — Alll laws, issuances, decrees or parts thereof
inconsistent with the provisions of this Act are hereby repealed.

SECTION 17.Effectivity Clause. This Act shall take effect upon its approval.

Approved.