FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES.
HOUSE BILLNo. 177 5

Introduced by the HONORABLE AGAPITO H. GUANLAO,

EXPLANATORY NOTE

The continuing decline in the support price for paddy rice (palay) in the past has
pushed some farmers to explore the possibility of shifting to other crops so they can
improve their profitability. It was observed that many of them tried planting fruit
crops with a hit-and-miss system. Some relied on other farmers to teach them how to
propagate Philippine fruits without necessarily ascertaining their market potential,

It was observed that even government has a very lax policy on fruits production and
processing, This can be the reason why we have a hard time competing in the world
market. Many of our farmers do not know how. They just rely on traders to tell them
what fruits are in demand not only in the country but most of all in the export
market.

This bill, therefore, seeks to consolidate the efforts of government and the private ,
sector in developing the Philippine fruits industry and trade so that ils full potential
can be realized. There is no question as to the dollar-earning potential of Philippine
fruits in the export market. Big commercial growers of Philippine fruits abouni
Mindanao. It is unfortunate, however, that small farmers/ growers, especially in
Luzon and the Visayas, do not benefit much from this industry.

Indeed, Filipinos boast about the abundance of Philippine fruits, particularly in
summer months. It is just lamentable that there are no enough processing plants to
convert surplus harvest to other by-products like wine and fruit preserves. It is high
time that the State consider the development of the Philippine fruit industry and
trade as part of the country's agriculture and fisheries modernization program. With
the creation of the Philippine Fruits Industry and Trade Authority or PhilFruits
there will be a single government agency tasked to oversee the Philippine fruits
industry and trade. There will be no more reason that production of fruits will be on

1


a hit-and-miss system. This will be afford a better opportunity for the small
farmers/ growers, more importantly the agrarian reform beneficiaries in the
mountainous areas, to maximize the profitability of their land-holdings by
cultivating and producing Philippine fruits.

Definitely, the improved income of Philippine fruits farmers/ growers will translate

to a better life for them. Concomitant with this will be other corollary economic
benefits to the nation. Thus, the approval of this bill is earnestly solicited.

GUANLAO,



FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

HOUSE BILL No. 1775

Introduced by the HONORABLE AGAPITO H. GUANLAO

AN ACT
CREATING THE
PHILIPPINE FRUITS INDUSTRY AND TRADE AUTHORITY,
VESTING IT WITH REGULATORY POWERS AND
APPROPRIATING FUNDS FOR THE PURPOSE

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

SECTION 1. Title. - This Act shall be known as the "Philippine Fruits
Development Act of 2010."

SECTION 2. Declaration of Principles and Policy. — Consistent with the policy
of Government on developing and modernizing agriculture and fisheries as the
comnerstone of the Philippine economy to attain food security and cognizant of the
potential contribution of growing Philippine fruits to food production not only, for
domestic consumption but also for the export market, it is hereby declared a policy
of the State to develop the industry and trade of Philippine fruits, With this, the Siate
shall safeguard the interest of small farmers/growers of Philippine fru’

‘The State shall provide the necessary support to the Philippine fruit industry
development through appropriate services in production, research, extension and
taining, financial assistance and other support services. It shal] prescribe and strictly
enforce regulations and quality control standards needed to safeguard the interest of
Philippine fruit farmers/ growers.’

The State shall fully exploit the industry's potentials to increase the farmers' income,
promote the export market and generate foreign exchange revenues.

SECTION 3. Creation of the Philippine Fruits Industry and Trade Authority ~
There is hereby created a government corporate body that shalll henceforth be
known as the Philippine Fruits Industry and Trade Authority or PhilFruits.


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SECTION 4. Objectives. — The Phill'ruits shall have the following objectives:

‘To improve the quality of life of Filipino farmers through the growing,
production and processing of Philippine fruils in suitable areas;

To ensure the profitability of Philippine fruit farmers through their adoption
of proven farm practices and technology; and

‘To promote the trade of Philippine fruits not only in the country but also in
the export market.

SECTION 5. Powers - The PhilFruits shall have the following powers:

1, To administer and regulate the Philippine fruit industry in the country;

2.

a

To incur any obligation or enter into contract with any person, material or
juridical, domestic or foreign, essential to the proper administration of its
affairs and the accomplishment of its purposes and objectives.

‘To own, purchase, lease., mortgage, encumber or otherwise dispose of real
and personal property in accordance with its purposes and objectives;

To accept and receive financial and othe:
sources for the development and promoti

support from private and other
m of the Philippine fruit industry;

To promulgate and enforce rules and regulations on the production of
Philippine fruits;

‘To impose administrative sanctions and/or penalties for violation of the rules
and regulations ed;

To establish, operate and maintain testing and experimental stations on
Philippine fruits, including the identification and preservation/ conservation
of endangered species;

To register and accredit farmers/ growers, processors, traders/exporters their
associations/ confederations and other associations involved with the
Philippine fruits industry and trade; and

To undertake measures to ensure that small farmers receive a fair price for
their produce.

SECTION 6. Functions— The PhilFruits shall have the following functions:


1. To undertake research studies on all aspects of the industry, including pilot
studies, and to ensure strong and collective linkages between research and
extension;

‘To package and disseminate recommended production technologies to guide
farmers/ growers in the country;

3.

To design and implement a specialized extension program on Philippine
fruits production, and other training and communications program for
manpower development in the various aspects of industry operations;

4, To promulgate and enforce rules and regulations to govern the production,
processing and trade of Philippine fruits, including those on phyto-sanitary
practices and other quarantine measures;

5. To identify suitable areas for the growing of Philippine fruits and promote

production in such areas;

6. To support efforts of Philippine fruits farmers/ growers in organizing
themselves into farmer's association/ cooperatives, thus, registering and
accrediting them;

7. To produce breeder, foundation and registered stocks; set and enforce
standards and procedures for seed production and marketing; supervise
certified seed production by private growers;

8. To provide assistance to small farmers/ growers in the marketing of their
produce and in doing so, to come up with a roster of registered processors,
traders and other participants in the Philippine fruits industry and trade;

9. To design and implement all industry monitoring and information system;
10. To undertake industry manpower development;

11. To assist farmers in sourcing funds for the production of Philippine fruits;

12. To conduct regular consultations with the Philippine fruit farmers, growers,
and all other sectors involved in the industry;

13. To design and administer a package of incentives to promote private sector
investments in the Philippine fruits industry;

14. To develop the full potential of the export of Philippine fruits; and


15. In general, to undertake all other functions as may be necessary to ensure the
success of the Philippine fruits industry and promote they interests of small
farmers/ growers.

SECTION 7. The Governing Board of the Phil Fruits.
governed by a Board of Directors composed as follows:

— The PhilFruits shall be

1. Secretary of Agriculture, as ex-officio Chairman;

2. Executive Director, Philippine Fruits Industry and Trade Authority, as ex-
officio Vice Chaitman;

3. Secretary of Trade and Indust

4. Secretary of Environment and Natural Resources;

ture and Resources Research and

5, Director, Philippine Council for Agi
Development;

6. One (1) representative from among the government financial institutions to be
appointed by the President of the Philippines upon the recommendation of
the Secretary of Agriculture;

7. One (1) representative from among the rural financial/cooperative
institutions to be appointed by the President of the Philippines’ upon the
recommendation of the Cooperatives Development Authority;

8. One (1) representative from among the Philippine corporations in the fruit
industry appointed by the President of the Philippines upon the
recommendation of the DTI Secretary; and

9. ‘Three (3) representatives from the Philippine fruits farmers/ growers, one
each from Luzon, the Visayas and Mindanao, to be appointed by the
President of the Philippines upon the recommendation of farmers associations
in each area.

SECTION 8. Term of Office of the Members of the Governing Board — Unless
sooner removed for cause by their respective associations, appointed members of the
governing Board shall hold office for a period of four (4) years from the date of their
appointments.


SECTION 9. Powers and Functions of the Board. - The Governing Board shall
act as the policy making body of PhilFruits to formulate policies, promulgate
regulations and prescribe rules to attain PhilFruits' purposes and objectives.

SECTION 10. Organization. — An Executive Director who shall be appointed
by the President of the Philippines, upon the recommendation of the Secretary of
Agriculture shall be the Chief Executive Officer of PhilFruits, He shall be assisted by
three (3) Deputy Executive Directors to be appointed by the President upon the
recommendation of the Secretary of Agriculture.

The Board shall determine and create the organizational structure of
PhilFruits to achieve its objectives and shall appoint all the other officers of
PhilFruits.

SECTION 11. Promulgation of Rules and Regulations, ~ The Board of Directors
of PhilFruits shall promulgate rules and regulations for the full implementation of
this Act within six (6) months of its effectivity. Such rules and regulations shall take
effect upon publication in a newspaper of general circulation and shall be amended
by the Governing Board from time to time as it may deem appropriate.

SECTION 12. Penalty Clause. - The following are prohibited in this Act and
shall be penalized accordingly:

1. Punishable by imprisonment of six months and one day to six years and /or
fine of one hundred thousand pesos (Php100,000.00);

a. Non-registration of farms measuring three hectares or more planted to a
single specie of Philippine fruits or three hundred fruit trees of a single
specie planted contiguously regardless of the area;

b, Illegal importation/smuggling of foreign fruits with a quantity of at least
‘one twenty-footer container van;

2. Punishable by imprisonment of one month and one day to
fine of fifty thousand pesos (Php50,000.00):

months and/or

a. Non-registration of a fruits processing plant for commercial purpose;

b. Illegal importation of breeding stocks/sceds of foreign fruits or foreign
varieties of Philippine fruits and illegal export of planting stocks of
Philippine fruits

3. Punishable by imprisonment of one day to thirty days and/or fine of twenty
thousand pesos (Php20,000.00):


a. Illegal trade of Philippine fruits;
b. Ilegal cutting of a Philippine fruit tree.

SECTION 13. Appropriation. - There is hereby authorized to be appropriated
from the Agricultural Competitiveness Enhancement Fund (ACEE) not otherwise
appropriated, the sum of Five Hundred Million Pesos (Php500,000,000.00) necessary
to carry into effect the provisions of this Act: Provided, that thereafter, the budget for
PhilFruits shall be included in the General Appropriations Act.

SECTION 14. Separability Clause. - If, for any reason, any section or provision
of this Act shall be held unconstitutional, other provisions hereof shall not be
affected and shall remain in full force and effect:

SECTION 15. Suppletory Application of Existing Legislation. - All existing
legislations regarding the Philippine fruits industry and trade not inconsistent with
this law shall have suppletory effect.

SECTION 16. Repealing Clause. - All laws, issuances, decrees or parts thereof
inconsistent with the provisions of this Act are hereby repealed.

SECTION 17. Effectivity Clause. — This Act shall take effect upon its approval.

Approved.