EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
Senate Bill No. 1199
19 
» 2 7  /III :,2
Rca.
Introduced by Senator Juan Miguel F. Zubiri
AN ACT
AUTHORIZING 
THE 
DEPARTMENT OF 
SOCIAL WELFARE 
AND 
DEVELOPMENT (DSWD), IN  COORDINATION WITH THE NATIONAL 
FOOD AUTHORITY (NFA), TO PURCHASE PALAY FROM LOCAL 
FARMERS USING THE RICE SUBSIDY AS PROVIDED UNDER THE 
PANTAWID PAMILYANG PILIPINO PROGRAM (4PS) IN THE GENERAL 
APPROPRIATIONS ACT (GAA) OF 2019 AND TO DISTRIBUTE RICE 
SUBSIDY IN  THE FORM OF ACTUAL RICE, INSTEAD OF CASH 
ASSISTANCE, TO THE QUALIFIED BENEFICIARIES
EXPLANATORY NOTE
The government continues to pursue its vision of food security for all 
Filipinos by allotting P137.1 Billion for agriculture and agrarian reform to 
enhance agricultural productivity, support poor farmers and fisher folk, and 
strengthen the climate resilience communities, among others.
On February 2019, Republic Act No. 11203 entitled, "An Act Liberalizing 
the Importation, Exportation and Trading of Rice, Lifting for the Purpose the 
Quantitative Import Restriction on Rice, and For Other Purposes" was enacted 
to help support the local 
rice industry specifically by creating a "Rice 
Competitiveness Enhancement Fund" to be allocated and disbursed, for the 
following: (a) Rice Farm Machineries and Equipment, (b) 
Rice 
Seed 
Development, 
Propagation, and 
Promotion, 
(c) 
Expanded 
Rice Credit 
Assistance, and Rice Extension Services.
Despite the efforts made by the government to protect the local rice 
industry, large stocks of imported rice have depressed the buying price of local 
pa/ayto levels way below the cost of production. The National Food Authority 
(NFA) reported that they have 209,525.15 MT of imported rice in their custody, 
as of August 22, 2019, and procured locally 360.657 bags of pa/ayat fifty (50) 
kilos per bag or 209,525.15 MT. The warehouses of NFA are already full, and 
the problem of oversupply is expected to exacerbate during the period from 
October to December which is the peak pa/ay harvest season. Latest 
government statistics for the average pa/ay prices plunged to P16.28 per 
kilogram from P23.10 per kilogram for the same period last year which is the 
lowest pa/ay price in seven (7) years. To provide immediate support and 
assistance to the local rice industry. President Rodrigo Roa Duterte has ordered 
the NFA to utilize their budget of P7 Billion to procure pa/ay or unhusked rice 
from local farmers.


The 2019 General Appropriations Act (GAA) provides a total allocation 
of P33.9 billion for rice subsidies, the largest of which is given to the 
beneficiaries of the Department of Social Welfare and Development (DSWD) 
under the "Pantawid Pamilyang Pilipino Program (4Ps)." This allocation can be 
utilized to buy palay directly from local farmers to provide for a total of 4.1 
million beneficiaries. The program grants the beneficiaries rice subsidy in the 
form of financial assistance in the amount of P600.00 per month, equivalent to 
twenty (20) kilos of rice, in addition to the cash assistance to the same 
beneficiaries of P300.00 per month or P3,600.00 per year under the 4Ps 
program. The DSWD confirmed that a balance currently of at least P6.97 billion 
remained undisbursed under the rice subsidy program. Under Section 8 of 
Republic Act No. 11203, the NFA is tasked to buy palay from local farmers "for 
the whole year" for the maintenance of a rice buffer stock and can be assigned 
to undertake direct local buying on behalf of the departments.
This bill seeks to help farmers by authorizing the Department of Social 
Welfare and Development (DSWD), in coordination with the National Food 
Authority (NFA), to purchase palay from local farmers in the provinces of 
Pangasinan, Ilocos Norte, Cagayan, Isabela, Nueva Vizcaya, Oriental Mindoro, 
Occidental Mindoro, Tarlac, Nueva Edja, Zamboanga del Sur and Iloilo using 
the rice subsidy as provided under the Pantawid Pamilyang Pilipino Program 
(4Ps) in the General Appropriations Act (GAA) of 2019 and to distribute rice 
subsidy in the form of actual rice, instead of cash assistance, to the qualified 
beneficiaries.
Moreover, local government units (LGUs) are encouraged to purchase 
rice from local farmers to provide for the rice needs of their hospitals, jails, and 
other local institutions, as well as feeding programs and calamity-program 
interventions.
In view of the foregoing, the passage of this bill is earnestly sought.
EN. JUAN MIGUEL F. ZUBIRI


EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
Senate Bill No. 
1 1 9 9
v '^<rS'^ (Pffh? of ( j (- ^ iT f r o r j?
'19 NOV 27 All :12
Introduced by Sen. Juan Miguel F. Zubiri
AN ACT
AUTHORIZING THE DEPARTMENT OF SOCIAL WELFARE AND DEVELOPMENT 
(DSWD), IN COORDINATION WITH THE NATIONAL FOOD AUTHORITY (NFA), 
TO PURCHASE PALAY FROM LOCAL FARMERS USING THE RICE SUBSIDY AS 
PROVIDED UNDER THE PANTAWID PAMILYANG PILIPINO PROGRAM (4PS) IN 
THE GENERAL APPROPRIATIONS ACT (GAA) OF 2019 AND TO DISTRIBUTE 
RICE SUBSIDY IN THE 
FORM OF ACTUAL RICE, 
INSTEAD OF CASH 
ASSISTANCE, TO THE QUALIFIED BENEFICIARIES
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
SECTION 1. S hort Title. - This Act shall be known as the "Mandatory Palay
2 
Purchase Act."
3 
SEC. 2. Declaration o f Policy. - It is hereby declared the policy of the State to
4 
address the plight of farmers in view of the decreasing buying price of local palay to levels
5 
way below the cost of production. Towards this end, the government shall provide
6 
mechanism to help the farmers by purchasing the produce of farmers and shall encourage
7 
other government agencies to buy directly from the local farmers the rice needed for the
8 
institutions under their jurisdiction such as hospitals, jails, and other institutions.
9 
SEC. 3. Source o f Paiay. — The palay to be distributed to 4Ps beneficiaries shall
10 
be primarily purchased from, but not limited to, the local farmers from following provinces:
11 
Pangasinan, Ilocos Norte, Cagayan, Isabela, Nueva Viscaya, Mindoro Oriental, Mindoro
12 
Occidental, Tarlac, Nueva Ecija, Zamboanga del Sur and Iloilo.
13 
SEC. 4. Mandate o f the D epartm ent o f Social Welfare and Developm ent
14 
(DSWD). -  The DSWD is hereby mandated to buy palay from the local farmers from the


1 
covered provinces and distribute rice subsidy in the form of actual rice, instead of cash
2 
assistance to qualified beneficiaries. For this purpose, the DSWD shall be authorized to
3 
use the rice subsidy as provided under the Pantawid Pamilyang Pilipino Program (4PS) in
4 
the General Appropriations Act (GAA) of 2019.
5 
SEC. 5. Local G overnm ent Units (LGUs). -  The Local Government Units (LGUs)
6 
having jurisdiction over the covered provinces are encouraged to purchase the rice
7 
requirement of their local hospitals, jails, and other institutions from local farmers.
8 
SEC. 6. Funding. -The funds needed to implement this Act shall be sourced solely
9 
from the rice subsidy budget provided under the Pantawid Pamilyang Pilipino Program
10 
(4PS) in the 2019 GAA.
11 
SEC. 7. Im plem enting Rules and Regulations. -  Within fifteen (15) days from
12 
the effectivity of this Act, the DSWD and the concerned LGUs, in coordination with the
13 
NFA, shall issue the necessary rules, regulations, procedures, and guidelines for the
14 
effective implementation of this Act
15 
SEC. 8. S eparability Clause. — In case any provision or any part thereof is
16 
declared unconstitutional, the other provisions not so declared and affected shall remain
17 
in force and effect.
18 
SEC. 9. Repealing Clause. -  All laws, presidential decrees, proclamations,
19 
executive orders rules and regulations or parts thereof, inconsistent with the provisions
20 
of this Act are hereby repealed or amended accordingly.
21 
SEC. 10. Effectivity. — This Act shall take effect fifteen (15) days following its
22 
complete publication in at least two (2) newspapers of general circulation.
Approved,