SEVENTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
)
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: ! ir ] ’
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JUL25 P6:01
S E N A T E
S.B, No. 1514
RECLlVl.ly
Introduced by Senator JOSEPH VICTOR G. EJERCITO
AN ACT
MANDATING 
THE 
ESTABLISHMENT 
OF 
AGRI-FOOD 
TERMINALS AND TRADING CENTERS IN EVERY PROVINCE 
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Tlic Philippines is known as an agricultural country as it devotes 
approximately 32% of its total land area for agriculture. However, 
despite its economic value, the agriculture industry in the Philippines is 
the most neglected sector and became the source of Filipinos whom 
tagged as the poorest of the poor.
Being a member of the Association of Southeast Asian Nations 
(ASEAN), Philippines signed the ASEAN Free Trade Agreement 
(AFTA). Tliis opens the gate of the Philippines to a more liberal policy 
on international trading and held as a key to a farther attraction to 
foreign direct investment.
As a result, the countiy is now facing a questionable capacity of 
competitiveness on the prices of our locally produced agricultural 
commodities against our neighboring countries such as Thailand, 
Indonesia, Malaysia and other signatories of AFTA. This added to the 
growing cases of smuggling of agricultural products in the countiy that 
triggers boundless diminution in farm gate prices of local product 
causing great burden to farmers and apparent imminent death of the 
local agriculture industry.
To protect prices of their produce against unscrupulous traders 
and to facilitate transportation of their local agricultural products, this 
proposed measure seeks the mandatory establishment of Agri-food


terminals and Trading Centers to be considered as the main hubs of 
agricultural product in every province for our farmers.
Considering the Build, Build, Build, infrastructure program of the 
Duterte administration, we are expectant that the railway system in the 
country will be fully developed. We are optimistic that our train system 
will not be limited to LRT 1, LRT2, MRT3 and to one of the oldest 
raiway system in Southeast Asia, PNR. We will have more railway lines 
and train stations that will conveniently serve the riding public 
efficiently.
As such, to maximize the economic potentials of train station, the 
bill mandates that at least one Agri-food Temiinal and Trading Center 
be established adjacent to every train station. Tliis promotes transport 
corridors to be the growth nodes for provinces and other local 
government units similar to the strategies implemented by other 
countries.
More importantly, this bill will increase the income of farmers by 
giving them access to buyers who can offer competitive prices. Tliey 
will be given opportunity to directly sell their products to institutional 
buyers and gain higher profit. Likewise, this endeavor for a liigher 
mobility for locally produced agricultural products to the whole 
country for cheaper cost of transportatioa
In view of the foregoing, the immediate passage of this bill is 
earnestly sought.
■
JOSEPH VICTOR G. EJERCITO


SEVENTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
)
S E N A T E
S.B, No. 1514
;  ' C f f i j r  ijl till 
i 't - i f ] '
•17 
JUL25 
P6-.01
RECLlUt'Ivv.
Introduced by Senator JOSEPH VICTOR G. EJERCITO
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AN ACT
MANDATING 
THE 
ESTABLISHMENT 
OF 
AGRI-FOOD 
TERMINALS AND TRADING CENTERS IN EVERY PROVINCE 
PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES
Be it enacted hi/ the Senate and House of Representatives of the Philippines in 
Congress assembled.
SECTION 1. Short Title. This act shall be known as the "Agri-Food 
Terminal and Trading Centers Act of 2017"
SEC. 2. Declaration of Policies. It is hereby declared the policy of the State 
to give aid to farmers by providing venue to promote and market their 
produce anel giving them access to buyers who can offer competitive 
pr ices. Toward this end, a comprehensive program for the creation of a 
nationwide system of agricultural food terminals & trading centers is 
hereby established.
Tlie goal of these centers is to provide an avenue where farmers 
and livestock raisers can directly sell their products to institutional 
buyers and gain liigher profit; moreover, this endeavor for a higher 
mobility for locally produced agricultural products to tlie whole 
country for cheaper cost of transportation.
SEC. 3. Definition of Terms. For purposes of this Act:
a. "Agri-food terminals and Trading Center or Terminal and 
Center" refers to an establishment where farmers can offer 
their products for sale directly to wholesalers and direct 
consumers thus eliminating middleman in the sale of 
agricultural products.


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b. "Socrctaiy" refers to the Secretary of Department of 
Agriculture.
c. “Department" refers to the Department of Agriculture
SEC. 4. Establishnieut of Agri-food Termimls mid Trading Centers. The 
Department of Agriculture shall establish and manage an Agri-food 
Terminals and Trading Center in eveiy province. Cities and 
Municipalities are hereby encouraged to establish their own Agri-food 
Terminals and Trading Centers.
Agri-food Terminal and Trading Centers shall have the following 
standards for their creation and operation;
a) It shall be mandatory for the province to setup at least one 
Agri-food Terminal and Trading Center adjacent to a train 
station located within the jurisdiction of the province 
concerned.
b) In provinces where no train station has been put up. Agri­
food Terminal and Trading Center shall be set up within 
the jurisdiction of the province concern, and strategically 
located near bus terminals or any transport hub of the 
province.
c) For the first two (2) years from tlie date of operation, 
terminals/centers shall concentrate on the top three (3) 
agricultural products of the province. The list shall be 
expanded to five after this period.
d) Each center shall be equipped with a warehousing center, 
cold storage and any similar facilities necessary to 
accommodate and store agriculture product.
SEC. 5. Work Plan. In line with this act, the Department shall develop 
the following:
a) A plan of bringing the program down to the grassroots, 
utilizing available personnel and facilities on the local level 
and those of LGUs;
b) A pattern of cooperation and mutual assistance with LGUs,
t 
Peoples 
Organizations 
and 
Non-Governmental
Organizations, which will maximize people empowerment


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and participatory approaches to program formulation, 
implementation and monitoring; and
c) A schedule of short-term, medium-term and long-term 
targets on research and development, marketing, trade 
promotion/initiatives, capacity building, among others.
SEC. 6. 
Funding. The amount of Twenty-Five billion pesos 
(P25,000,000,000) is hereby appropriated for the initial year of 
implementation of this act, thereafter, the amount of Ten billion pesos 
(P10,()()0,000,000) shall be included in the budget of the Department for 
implementation and continued expansion of this program. In addition, 
the establishment and operation of terminals and centers will be made 
with the available participatory funding from the national government 
with adequate equity from the Local Government Units.
SEC. 7. Iwpiniicnting Rules umi Rcgulnlious. Within thirty (30) days from 
the effectivity of this Act, the Secretary of Agriculture and the Secretary 
of Interior and Local Government, in consultation with appropriate 
government agencies and t)ther stakeholders, shall promulgate the 
necessary rules and regulations to implement this Act. The 
implementing rules and regulations shall include a template to guide 
the cities and municipalities in the establishment of their own Agri-food 
Terminals and Trading Centers.
SEC. 8. ScfHimhilily Clause. If any provision of this Act is held invalid or 
unconstitutional, other provisions not affected thereby shall continue to 
be in full force and effect.
SEC. 9. Repealing Clause. All laws, decrees, orders, rules, and 
regulations, or parts thereof, inconsistent with the provisions of tliis Act 
are hereby repealed, amended, or modified accordingly.
SEC. 10. Effeetivit}/ Clause. This Act shall take effect after fifteen (15) days 
following its publication in the Official Gazette or in a newspaper of 
general circulation.
Approved,