Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. 
Romero  
 EXPLANATORY NOTE 
The National Food Authority (NFA) was created through Presidential 
Decree No. 4 dated September 26, 1972, under the name National Grains 
Authority, (NGA) with the mission of promoting the integrated growth and 
development of the grains industry covering rice, corn, feed grains and 
other grains like sorghum, mongo, and peanut. 
This decree abolished two agencies, namely, the Rice and Corn Board 
(RICOB) and the Rice and Corn Administration (RCA) but absorbed their 
respective functions. 
On February 14, 2019, the Rice Tariffication Law, fully known as 
Republic Act 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" was approved. 
RA 11203 transforms the NFA from a Trading and Regulatory Agency to 
a Buffer Stocking Agency. The role of the National Food Authority (NFA) 
was refocused on the acquisition, maintenance, and distribution of rice 
buffer stock. The law stipulates that the. 
Effective March 5, 2019, the NFA ceased performing its regulatory and 
licensing functions over the international and domestic trading of rice. 
This House Bill seeks to provide Modernization Funding to the National 
Food Authority (NFA), to maintain an optimal level of national rice
inventory to be sourced solely from local farmers and to distribute rice 
November 7, 2022
10:55 am
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during emergency/calamity situations and sustain the disaster relief 
program of the government during natural or man-made calamities. 
 Thus, the early passage of this bill is earnestly requested.  
MICHAEL L. ROMERO  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
19TH CONGRESS 
First Regular Session 
HOUSE BILL NO. ___ 
Introduced by Representative Michael L. 
Romero  
AN ACT 
PROVIDING FOR MODERNIZATION FUNDINGFOR THE 
NATIONAL FOOD AUTHORITY (NFA), INCREASING AND 
REORGANIZING ITS ADMINISTRATION, TO PROVIDE A 
COST-EFFICIENT CORPORATE ENTITY, CAPABLE OF 
MANAGING THE COUNTRY'S BUFFER STOCK AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 
1. 
DECLARATION OF POLICY – It shall hereby be a 
declared policy of the State to procure palay locally and maintain the 
optimal level of buffer stock at all times strategically located across the 
country.  
The state shall manage efficiently and effectively the acquisition, quality 
maintenance, and disposition of the buffer stock during emergencies and 
calamities.  
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The state shall continually improve the effectiveness of our Quality 
Management System towards equitable development for improved quality 
of life for all. 
The state shall formulate policies for the efficient and effective 
administration 
and 
management 
of 
all 
manpower, 
skills 
and 
competencies to ensure compliance. 
SECTION 
2. 
MODERNIZATION FUNDING. – The amount of 
Five Hundred Million Pesos (Php 500,000,000.00) for the operation and 
administration of the National Food Authority (NFA) shall be chargeable 
against funds for the purpose and other sources recommended by the 
Department 
of 
Budget 
and 
Management 
(DBM). 
Thereafter, 
appropriations for the National Food Authority (NFA) shall be included 
in the budget proposals under the Department Agriculture (DA). 
 
The Department of Budget and Management (DBM) shall rationalize the 
existing organizational structure and staffing pattern of the in accordance 
with the provisions of this Act and relevant compensation and position 
classification laws, rules and regulations. 
Thereafter, the amount needed for the continued implementation 
of the modernization program, shall be included in the annual General 
Appropriations Act (GAA). 
SECTION 
3. 
National 
Food 
Authority 
(NFA) 
MODERNIZATION FUND – There is hereby created the (NFA) 
Modernization Fund to be used exclusively for the (NFA) Modernization 
Program. 


The (NFA) Modernization Fund shall be administered by the Secretary of 
the DA in accordance with existing government budgeting, accounting 
and auditing rules and regulations. 
SECTION 
4. 
PROGRESS REPORT – The Secretary of DA 
shall prepare an annual report on the status of the implementation of the 
(NFA) Modernization Programs which shall be submitted, to the Office of 
the President and to the Chairpersons of the Committee of Agriculture 
and Food of the Senate and the House of Representatives. 
SECTION 
5. 
PERIOD 
OF 
IMPLEMENTATION 
– The 
modernization program under this Act shall be implemented for an initial 
period of two (2) years:  
Provided, that payments for multi-year contract obligations 
incurred under this Act may extend beyond this period:  
Provided, further, That the National Food Authority (NFA) shall 
continue to develop, modernize and constantly update its operational 
capabilities to keep pace with best global practices. 
SECTION 
6. 
POWERS AND FUNCTIONS. – The National 
Food Authority (NFA) shall continue to exercise and uphold the 
following powers and functions; but not limited to: 
The NFA Council has been vested directly by law with the legal capacity 
and authority to exercise all corporate powers, conduct all business, and 
to hold all the properties of the NFA. As a collegial body, it is primarily 
responsible for the governance of the NFA. It is the NFA Council and not 
the NFA Management which is primarily liable to the State for the 
operations and performance of the NFA. 
A. Discretionary powers which cannot be delegated 


1. Certification of a shortage of rice and excess production and/or 
supply as requirement to import and export, respectively, except for 
rice importation under the Minimum Access Volume under the 
World Trade Organization. 
2. Determination of buying prices of palay and com and selling prices 
of rice, corn and other grains. 
3. Determination of rates for the export of rice, corn and other grains 
and/or their substitutes and their by-products. 
4. Determination of fees for the registration of retailers or rice, corn 
and other grains and their substitutes and manufacturers or 
processors of goods where rice or corn or other grains and/or 
substitutes are used. 
5. Contract domestic as well as foreign indebtedness through a 
resolution, stating the purpose for which the indebtedness is to be 
incurred and citing the project study designed for the purpose, 
declare and authorize the NFA's execution or issuance of and 
establish the terms and conditions to be contained in such bonds, 
loan agreements, other evidences of indebtedness necessary 
thereof, such resolution shall become valid and effective upon 
approval by the President of the Philippines and upon prior 
recommendation of the Secretary of Finance. 
6. Sell, lease, mortgage, pledge or otherwise dispose of the property, 
assets or undertaking of the NFA or any party thereof as the NFA 
may deem fit. 
7. Invest its funds or other assets in such undertaking as it may deem 
wise and necessary such as but not limited to investments in any 
and all kinds of securities, stocks, bonds and other secured 
collaterals. 
8. Create and establish subsidiary corporations to undertake the 
related and integrated business operations of the NFA. 
9. Recommend fees, charges and/or surcharges for the approval of 
the President. 
10. 
Determine the need to import or export rice and corn. 
11. 
Establish or cause the establishment of branches or agencies 
domestic or foreign. 
12. 
Establish Provident Fund. 
13. 
Establish sinking fund subject to the approval of the 
Secretary of Finance in consultation with the Monetary Board. 
14. 
Determine rates, fees, charges and/or surcharges to equalize 
the wholesale price or imported grains and their substitutes with 
the prevailing selling price of the equivalent commercial grain in the 
domestic market. 
15. 
Dispose, 
allocate 
and 
utilize 
the 
Development 
and 
Stabilization Fund. 


B. Duty to properly select and provide independent check on 
Management 
1. Elect Administrator from among their ranks. 
2. Appoint other officers of the NFA. 
3. Elect and/or employ Executive Officers who are fit and proper to 
hold such offices with due regard to their qualifications, 
competence, experience and integrity 
C. Mandate and responsibility for NFA's performance 
1. Provide the corporate leadership of NFA subject to the rule of law, 
and the objectives set by the National Government through the Office 
of the President and the GCG. 
2. Establish NEA's vision and mission, strategic objectives, policies 
and procedures, as well as defining the NFA's values and standards 
consistent with Charter Statements, Strategy Maps, Philippine 
Development Plan for Agriculture and other control mechanism 
mandated by best business practices. 
3. Determine important policies that bear on the character of NFA to 
foster its long-term success, ensure its long-term viability and 
strength, and secure its sustained competitiveness. 
4. Determine the organization structure of NFA, defining the duties 
and responsibilities of its Executive Officers and employees and 
adopting a compensation and benefit scheme that is consistent 
with the GOCC Compensation and Position Classification System 
(CPCS) developed by GCG and formally approved by the President 
of the Philippines. 
5. Ensure that personnel selection and promotion shall be on the 
basis of merit and fitness and that all personnel action shall be in 
pursuit of the applicable laws, rules and regulations. 
6. Provide sound written policies and strategic guidelines on NFA's 
operating budget and major capital expenditures and prepare the 
annual and supplemental budgets of NFA. 
7. Comply with all reportorial requirements, as required in the 
Charter, as well as applicable laws, rules and regulations. 
8. Formally adopt and conduct annually the mandated Performance 
Evaluation System (PES) and the Performance Scorecard and timely 
and accurate report the results to the GCG. 
9. Enhance NFA's relations with its Stakeholders. 
D. Specific functions 
1. Meet regularly, ideally at least once every month, to properly discharge 
its responsibilities, with independent views expressed during such 
meetings being given due consideration, and that all such meetings 
shall be properly documented or minuted. 


2. Determine NFA's purpose and value, as well as adopt strategies and policies, 
including risk management policies and programs, in order to ensure that 
NFA survives and thrives despite financial crises and that its assets and 
reputation ar adequately protected. 
3. Monitor and evaluate on a regular basis the implementation of corporate 
strategies and policies, business plans and operating budgets, as well as 
Management's overall performance to ensure optimum results. 
4. Adopt a competitive selection and promotion process, a professional 
development program, as well as a succession plan to ensure that the Officers 
of NFA have the necessary motivation, integrity, competence and 
professionalism. 
5. Monitor and manage potential conflicts of interest of Council Members, 
Management,  and shareholders, including misuse of corporate assets and 
abuse in related party transactions. 
6. Implement a system of internal checks and balances, which may be applied 
in the first instance to the Council and ensure that such systems are reviewed 
and updated on a regular basis. 
7. Ensure the integrity of NFA's accounting and financial reporting systems, 
including independent audit, and that appropriate systems of control are in 
place, in particular, systems for risk management, financial and operational 
control, and compliance with the law and relevant standards. 
8. Identify and monitor, and provide appropriate technology and systems for the 
identification and monitoring of key risks and performance areas. 
9. Adopt, 
implement 
and 
oversee 
the 
process 
of 
disclosure 
and 
communications, and conduct and maintain the affairs of the NFA within the 
scope of its authority, as prescribed in its Charter and applicable laws, rules 
and regulation. 
 
SECTION 
7. 
INCREASE OF PERSONNEL. – The National Food 
Authority (NFA) shall maintain the sufficient staffing pattern. Hence, it is 
authorized to increase its manpower to meet such required and may continue to 
increase personnel per percentage rate increase of committed mandates 
annually or as the need arises. 
SECTION 
8. 
TRANSITORY 
PROVISION – 
Existing 
industries, 
businesses and offices affected by the implementation of this Act shall be given 
six (6) months transitory period from the effectivity of the IRR or such other 
period as may be determined, to comply with the requirements of this Act. 


SECTION 
9. 
IMPLEMENTING RULES AND REGULATIONS. – The 
departments and agencies charged with carrying out the provisions of this Act 
shall, within sixty (60) days after the effectivity of this Act, formulate the 
necessary rules and regulations for its effective implementation. 
SECTION 
10. 
REPEALING CLAUSE. – All laws, decrees, executive 
orders, rules and regulations, or parts thereof inconsistent with the provisions 
of this Act are hereby repealed or modified accordingly. 
SECTION 
11. 
SEPARABILITY CLAUSE. – If, for any reason, any 
section or provision of this Act is held unconstitutional or invalid, the other 
sections or provisions hereof shall not be affected thereby. 
SECTION 
12. 
EFFECTIVITY CLAUSE. – This Act shall take effect 
after fifteen (15) days from its publication in the Official Gazette or in at least two 
(2) national newspapers of general circulation whichever comes earlier. 
Approved,