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Republic of the Philippines | a ie
HOUSE OF REPRESENTATIVES aie

Quezon City, Metro Manila e &

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SEVENTEENTH CONGRESS
First Regular Session

4806

House Bill No.

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay — Villar

EXPLANATORY NOTE

Abaca plant (Musa textiles) is indigenous to the Philippines. Long before the Spaniards came here,
abaca fiber, known worldwide as the Manila hemp, were already being woven into breathable
fabrics and made into sturdy sandals in different parts of the country.

Abaca fiber is considered the strongest among other natural fibers, which gained high demand in
global trade. Abaca fiber has remarkable superior tensile strength and resistance especially to salt
water decomposition, which boasts of high demands all over the world as raw material for ropes
and other cordage products; textile and fibercrafts, such as bags, hats, place mats and the likes;
handicrafts; abaca pulp; and specialty papers. The global demands for abaca continue to expand
due to the increasing number of its uses. It is now setting its place in the automobile industry being
used as the strongest natural fiber material for dashboards and car interiors.

At present, Philippines is the top exporter of abaca with an average annual export earnings of
US$80 million. However, despite our dominance in the world market, the country's abaca
industry is confronted by challenges including poor technology adoption of farmers; lack of high-
yielding and virus-resistant planting materials; prevalence of pest and diseases pressures; and
typhoon devastation and other natural calamities. In addition, the meager income from abaca
farming that is not sufficient to sustain the needs of small farmers compel them to shift to other
viable crops.

The global demand for abaca increases but with the many industry problems and challenges, our
abaca production shows trifling growth in the past years. As compared to other abaca producing
countries — Ecuador, Indonesia and other Southeast Asian countries ~ which aggressively develop
plantations for abaca production, abaca farmers in the Philippines are in dire need of more
government support on the production side. If the serious concerns of our abaca farmers are not
immediately addressed, we are at risk of losing our leadership in the abaca global scene in the
years to come.

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_weaving-more-opportunities-into-farmers-lives

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This bill —filed as a counterpart of Senate Bill No. 717 with the support of its author, Senator
Cynthia Villar seeks to revive the Philippine abaca industry to make it more competitive in the
international market and to sustain and retain our global leadership in abaca production.
Institutionalizing the abaca industry in the Philippines will enhance and ensure the formulation
and implementation of plans, projects, programs, and policies for the scientific propagation,
processing, utilization resources and technologies, and expansion of market.

a rs
EMMELINE Y. AGLIPAY - VILLAR
Representative, DIWA Party-list

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

SEVENTEENTH CONGRESS
First Regular Session

House Bil No, 4806

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay — Villar

AN ACT
INSTITUTIONALIZING THE PHILIPPINE ABACA INDUSTRY DEVELOPMENT
PROGRAM, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the “Philippine Abaca Industry
Development Program of 2016".

SECTION 2, Declaration of Policy. - It is hereby declared the policy of the State to protect and
promote the right of the Filipino people to a better quality of life, improve their living conditions,
through programs that provide sustainable livelihood, increase employment and protect the
environment.

SECTION 3. Definition of Terms. - For the purpose of this Act, the following terms shall refer to:

a) Program the Philippine Abaca Industry Development Program designed to promote
competitiveness of the Abaca Industry worldwide.

b) Philippine Abaca Industry Development Council (PAIDC) the Council established
herewith.

c) Secretariat the Secretariat of the PAIDC as contained herewith shall be PhilFida.

SECTION 4, There is hereby created a Philippine Abaca Industry Development Coordinating
Council (PAIDCC), hereinafter referred to as the Council, administratively attached to the
Department of Agriculture, charged with the main function of coordinating the activities of various
agencies and instrumentalities to ensure the accomplishment of the Philippine Abaca Framework
for Development.

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‘The Chairman of the Council shall submit an annual report to both Houses of Congress on the
status of the implementation of this Act.

SECTION 5. Composition. The Philippine Abaca Industry Development Coordinating Council
shall be composed of the following:

a) Secretary of the Department of Agriculture as Chairman (DA);
b) The Executive Director of PhilFIDA as Head of the Council Secretariat;

¢)

Head of the National Abaca Research Center (NARC);
4) Secretary of the Department of Environment and Natural Resources (DENR);
©) Secretary of the Department of Agrarian Reform (DAR)

f) Secretary of the Department of Science and Technology (DOST);

g) Secretary of the Department of Trade and Industry (DTI);

h)

Representative from the League of Municipalities of the Philippines;

i) Representative from the League of Provinces;

i) Representative from a reputable Private Abaca Industry Association;

k) Two (2) Representatives from Abaca Farmers!/Producers/Processors* Associations;
a. One (1) Representative from Non-Governmental Organizations (NGOs).

The Council shall regularly meet every two (2) months and may hold special meetings, whenever
the need arises, to consider urgent matters upon the call of the Chairman or any seven (7) Council
members.

SECTION 6. Institutionalizing the Philippine Abaca Industry Development Program (PAIDP). -
There is hereby established the Philippine Abaca Industry Development Program within the
mandate of the Philippine Fiber Development Authority (PhilFIDA) which shall be a ten (10) year
Framework for Development, to be validated and updated annually. Such Framework shall serve
‘as guide to the formulation and implementation of plans, projects, programs, and policies for the
scientific propagation, processing, utilization, and expansion of trade of Philippine Abaca. The
Framework shall likewise provide for the following:

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a) Site Identification - The Department of Environment and Natural Resources in
coordination with the Department of Agriculture, Department of Agrarian Reform and the
local government units shall identify the broad areas suitable for the planting and
propagation of Philippine Abaca, within six (6) months after the effectivity of this Act.

b)

Scientific Propagation and Development - The Department of Environment and Natural
Resources and the Department of Science and Technology shall establish cultivation and
propagation of Philippine disease free and disease resistant varieties of abaca. The DOST
shall also provide for the transfer and improvement of appropriate technology and
techniques, which will be utilized in the production, processing, marketing and distribution.
Particular emphasis shall also be made on adoption and upgrading of post-harvest
technology;

©) Production Support and Extension - The Department of Environment and Natural
Resources, Department of Agriculture, Department of Trade and industry, and the
Department of Science and Technology in coordination with the Local Government Units,
and Non-Governmental Organizations, Technical Education and Skills Development
Authority (TESDA), Cooperative Development Authority (CDA), state universities and
colleges (SUCs), and other relevant government agencies, shall establish programs which
promote and provide adequate training on adapting technologies to individuals engaged in
propagation, production, processing, marketing and distribution of Philippine abaca,
strengthen farmers’/ producers’/processors’ cooperatives and organizations involved in the
sustainable and viable development of Philippine abaca.

d

Market Promotion and Expansion of Trade - The Department of Trade and Industry, in
coordination with Private Industry Associations, shall link-up agribusiness cooperatives
and organizations directly with consumers‘ cooperatives and organizations, agro-
processing companies, or exporters to provide marketing outlets and assure relatively
higher and stable prices of abaca. This also includes exploring national and international
markets and facilitating the participation of local farmers, growers, and exporters in local
and international conferences, trade fairs, expositions, and exhibits;

e) Infrastructure Development - Access to post harvest facilities, storage and
distribution/transport facilities of existing government agencies shall be facilitated by the
Department of Environment and Natural Resources, Local Government Units, and the
Department of Agriculture.

£) Quality Assurance - To ensure health and proper trading, the Department of Trade and
Industry, Department of Science and Technology, and PhilFIDA, respectively, shall
establish and enforce standards in grading, sampling and inspection, tests and analysis,
specifications, nomenclature, units of measurement, packaging, preservation, conservation
or transportation of Philippine abaca products and byproducts; and

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g) Philippine Abaca Information Center of the Department of Trade and industry in
coordination with Local Government Units shall establish a Philippine Abaca Information
Center in areas where they are abundant.

Section 7. Philippine Abaca Development Fund - To provide for the funding requirements for the
propagation, production, processing, marketing, promotion and distribution of Philippine abaca,
there is hereby created a Philippine Abaca Development Fund (PADF), with an initial amount of
Five Hundred Million Pesos (Php500, 000,000.00) upon the approval of this Act and every year
thereafter, to be provided by the Department of Budget and Management in the PhilFIDA’s budget.

This is in addition to PhilFIDA's existing allocation under the General Appropriations Act for the
development of other fibers and its administrative, regulatory and operational expenses. Of this
amount, Fifty Million Pesos (P50,000,000.00) shall be allocated for the Philippine Abaca Research
Center, Visayas State University in Baybay, Leyte, for the abaca research and development and
extension program.

For the succeeding years, for the next nine (9) years from the approval of this Act, a minimum
amount of not less than Five Hundred Million Pesos (Php500,000,000.00) annually shall be
allocated for the development and sustainability of the Abaca industry. The requirements of
cooperating agencies shall be incorporated in their respective budget from the General
Appropriations fund.

SECTION 8, The Council Secretariat - The Council Secretariat shall be headed by the Executive
Director of the PhilFIDA. The Secretariat and technical staff shall be detailed from their existing
personnel without prejudice to the designation by the Council of such additional staff members as
it may deem necessary for the proper discharge of its function and responsibilities.

SECTION 9. Implementing Rules and Regulations. The Philippine Abaca Industry Development
Coordinating Council shall formulate and prescribe the necessary implementing rules and
regulations to carry out the provisions of this Act.

SECTION 10. Repealing Clause. All laws or parts thereof, decrees, orders, rules and regulations
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SECTION 11. Separability Clause. If any of the provisions of this Act is declare invalid, the other
provisions not affected thereby shall remain in full force and effect.

SECTION 12. Effectivity Clause. This Act shall take effect immediately following its publication
in two newspapers of general circulation or in the Official Gazette.

Approved,

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