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

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL No,_ 9928

Introduced by Representative Shirlyn L. Bafias-Nograles

EXPLANATORY NOTE

This bill seeks to set a ceiling on the prices of different varieties of rice to
ensure the affordability of rice and protect the consumers from rice cartels.

The Philippines is an agricultural country filled with a variety of food
resources. It is even known once as the rice capital of Asia. The International
Rice Research Institute was even established here in the Philippines. Foreign
rice researchers had studied the kind of rice we produced because of the
bountiful harvest of our rice fields.

Nowadays, as the Philippines, along with the rest of the world, is currently
experiencing a national health emergency or pandemic, we are again reminded
of the importance of the basic commodity that is rice. It feels as if something is
missing on our table without this staple. However, because of the massive
development projects that have swept our land, local rice production has
dwindled. We are now dependent on rice importation to maintain our buffer
stock of rice.

For a long time, concerns have been raised on some practices of big rice
importers and traders of manipulating the prices of rice in the market by
controlling the rice supply. Thus, it is imperative to institute measures that will
protect consumers from these unfair practices. At the very least, we need to


establish a ceiling or cap on the prices of rice to protect the people from
unreasonable price increases.

The core principle of this bill is the protection of consumers. It aims to
protect them from corrupt individuals who manipulate the prices of rice in the
land. This measure will also guarantee the affordability of rice in our country.

In view of the foregoing, approval of this bill is highly recommended.

ia
SHIRLYN L. S-NOGRALES,


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

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL NO,_'9023

Introduced by Representative Shirlyn L. Baiias-Nograles

AN ACT
PROVIDING FOR MECHANISMS TO SET A CEILING ON THE
PRICES OF DIFFERENT VARIETIES OF RICE TO ENSURE THE
AFFORDABILITY OF RICE AND PROTECT THE CONSUMERS
FROM RICE CARTELS

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

SECTION I. Short Title. - This Act shall be known as the “Rice
Price Ceiling Act.”

SEC. 2. Declaration of Policy. — It is hereby declared the policy of
the State to ensure the availability of rice at affordable prices and protect the
consumers against unscrupulous practices of rice traders and rice cartels.
Towards this end, the State shall establish measures to regulate the prices of

different varieties of rice and set a ceiling on their prices to ensure their


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affordability and to protect the consumers from unreasonable price increase and

cartels.

SEC. 3. Mandatory Rice Price Ceiling. - The Department of
Agriculture, in coordination with the Price Coordinating Council, shall
determine and set a ceiling on the price of different varieties of rice at the

regional or national level every three (3) months.

The Price Coordinating Council shall cause the immediate dissemination
of the mandated price ceiling and its effective duration through broadcast by
radio, television, social media, and other effective information dissemination
system. The information on the rice price ceiling shall also be disseminated and
posted in public markets, supermarkets, or other public places. If necessary, the
Price Coordinating Council shall cause its publication in a newspaper of general

circulation.

SEC. 4. Determination of Price Ceiling. — In determining the

reasonable price ceiling, the following factors shall be taken into consideration:

(a) The average price of rice in the last three (3) months immediately
preceding the proclamation of the new price ceiling;
(b) The price ceiling in the preceding month;

(c) The supply available in the markets;


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(d) The cost to the producer, manufacturer, importer, distributor, or
seller including:

(1) The exchange rate of the peso to the foreign currency with
which rice commodity or any component, ingredient or raw material
thereof was paid for;

(2) Any change in the amortization cost of machinery brought
about by any change in the exchange rate of the peso to the foreign
currency with which the machinery was bought through credit facilities;

(3) Any change in the cost of labor brought about by a change in
the minimum wage; and

(4) Any increase in the cost of transporting or distributing the rice
to the area of destination.

(e) Such other factors or conditions which will aid in arriving at a just

and reasonable price ceiling.

SEC. 5. Penalties. - Any person who sells rice in violation of the
price ceiling prescribed by the Price Coordinating Council shall be punished
with the penalty of imprisonment of not less than one (1) year but not more than
ten (10) years, or a fine of not less than Fifty thousand pesos (P50,000.00) but
not more than Five hundred thousand pesos (P500,000.00), or both, at the

discretion of the court.


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If the offender is a juridical person, the president, manager or officer who

is responsible for the violation shall be held liable.

SEC. 6. Implementing Rules and Regulations. — The Department of
Agriculture shall, in coordination with the Price Coordinating Council, issue the
necessary rules and regulations for the effective implementation of this Act.

SEC. 7. Repealing Clause. - All laws, decrees, orders, or rules and
regulations which are inconsistent or contrary to the provisions of this Act are
hereby amended or repealed accordingly.

SEC. 8.  Effectivity. — This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation.

Approved,