Republic of the Philippines
HOUSE OF REPRESENTATIVE;
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. __ 4625

EXPLANATORY NOTE

The Philippines has the notorious distinction of being among the world’s
top rice producers and being among the world’s top rice importers. As of 2017, it
was 8" largest rice producer.' Yet, of February 2019, it was also the 2™ largest
rice importer.? This oddity is explained by the fact that local rice production has
been unable to meet the increasing local demand for rice.3 Unfortunately, the
inevitable result is competition between local and imported rice. Implementation
of the Rice Tariffication Law‘ has liberalized rice imports and exacerbated
competition. As a result, rice prices are dropping to the detriment of local farmers.
For example, the average farmgate price of palay, as of last mid-August, was Php
17.62 per kilo, down 21% from last year.5 The average wholesale price of well-
milled rice decreased 8% to Php 39.14 per kilo toward the end of last July.® The
wholesale price of regular-milled rice fell 10% to Php 35.27 per kilo while the
1 See FAOSTAT, hitp://www.fao.org/faostat/en/#data/QC/visualize (last visited Sept. 6, 2019).

2 See STATISTA, htips:/;www.statista.com/statistics/255948/top-rice-exporting-countries-worldwide-201 1/
(last visited Sept. 6, 2019).

9 See Louise Maureen Simeon, “Philippines to import 1.2 MT of rice in 2019,” The Philippine Star (Sept. 14,
2018), https://www.philstar.com/headlines/2018/09/14/1851412/philippines-import-12-mt-rice-
2019#F4JygFgwyjET1SLe.99 (last visited Sept. 6, 2019).

‘See R.A. No. 11203, “An Act Liberalizing the Importation, Exportation and Trading of Rice, Lifting for the
Purpose the Quantitative Import Restriction on Rice, and For Other Purposes.”

5 See J.C, Punongbayan, “Plummeting rice prices: How wal ‘out rice farmers cop?,” Rappler (Sept. 5, 2019).
See Louise Maureen Simeon, “Palay production down 5% on Q2,” The Philippine Star, 2019,

bttps:/;www.philstar. onbasines/201908/171943999 aly production-down-5-q2 (last visited Sept. 6,
2019),


average retail price also decreased by 7.7% to Php 38.38 per kilo.” The drop in
prices threatens the livelihood of local farmers, compelling them to seek
alternative employment. This, in turn, would result in increased dependency on
rice imports and threaten the Philippines’s agriculture-based economy.

To encourage support for local rice farmers and boost demand for locally
produced rice, this bill seeks to require retailers to label locally produced rice as
produced by Filipino farmers. Hopefully, this labeling requirement shall awaken
and grow the sense of patriotism and nationalism among Filipino consumers and
encourage them to prefer locally produced rice. Immediate passage of this bill is

ea
;ERALDINE B. ROMAN

earnestly sought.

7 See Louise Maureen Simeon, “Palay production down 5% on Q2,” The Philippine Star, 2019,
hnttps:/www.philstar.com/business/2019/08/17/1943999/palay-production-down-5-q2 (last visited Sept. 6,
2019).


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

EIGHTEENTH CONGRESS
First Regular Session

House Bill No, _ 4525

Introduced by Representative GERALDINE B. ROMAN

AN ACT
MANDATING RICE RETAILERS TO IDENTIFY LOCALLY
PRODUCED RICE AS PRODUCED BY FILIPINO FARMERS, AND
APPROPRIATING FUNDS THEREFOR

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 “Filipino Farmer First Act.”
See. 2. Declaration of Policy. - It is the policy of the State to ensure the continued viability
and competitiveness of the country’s agricultural sector by fostering patriotism and
nationalism among local consumers and encouraging consumer preference for locally
produced agricultural products. It is also a policy of the State to promote a rising standard of
living and an improved quality of life for all farmers.
Sec. 3. Coverage. — All retailers of rice shall identify any locally produced rice as produced
by Filipino farmers by attaching the label “Taas Noo, Filipino!” to the product.
Sec. 4. Liabilities and Penalties. — For violations of this Act, the following penalties shall
apply to offending retailers:
a. On the first offense, a fine of not more than Twenty thousand pesos (Php
20,000.00);
b. On the second offense, a fine of not more than Fifty thousand pesos (Php
50,000.00);
c. On the third offense, a fine of not more than One hundred thousand pesos (Php
100,000.00) or imprisonment of not less than six (6) months and one (1) day and


not more than six (6) years, or both, at the discretion of the court: Provided, That
the business permits and licenses, in the case of a business entity or
establishment shall be revoked or cancelled.
For business enterprises, the liability shall be borne by the owner or
operator of the business enterprise. Any agreements to the contrary shall be void.
The fine collected shall be remitted to the Department of Agriculture for use in
the implementation of this Act.
Sec. 5. Appropriations. — The amount necessary for the initial implementation of this Act
shall be charged against the appropriations for the Department of Agriculture. Thereafter,
the required budget for continued implementation of this Act shall be submitted to the
Department of Budget and Management for inclusion in the General Appropriations Act.
See. 11. Implementing Rules and Regulations. ~ Within sixty (60) days from the effectivity
of this Act, the Department of Agriculture shall, in coordination with the Department of
Trade and Industry, issue the necessary rules and regulations for the effective
implementation of this Act, including the advertisements and promotions intended to grow
preference for locally produced rice and the production and dissemination of the required
labels,
Sec. 12. Repealing Clause, — All laws, presidential decrees or issuances, executive orders,
letters of instruction, administrative orders, rules or regulation inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.
Sec. 13. Separability Clause. — If any provision of this Act is declared unconstitutional, the
remainder of this Act or any provision not affected thereby shall remain in full force and
effect.
Sec. 14, Effectivity. - This Act shall take effect fifteen (15) days after the publication in the
Official Gazette or in a newspaper of general circulation.
Approved,