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DATE _July 28, 2022
TIME 4:42 pm

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No. __2707

Introduced by
HON. YEDDA MARIE K. ROMUALDEZ

and
HON. JUDE A. ACIDRE

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

EXPLANATORY NOTE

Abaca, internationally known as Manila hemp, is endemic to the Philippines.
The Philippines dominates the global abaca trade as the country supplies about 86.1
percent of the world’s abaca fiber requirements, and Ecuador and Costa Rica the
remaining 13.7 percent and 0.2 percent, respectively, as of 2019." Itis also considered
as the “strongest natural fiber in the world” by the Philippine Department of Science
and Technology (DOST) and the Philippine Fiber Industry Development Authority
(PhilFIDA). The Philippine abaca has nine grades/classifications of abaca fiber making
it versatile in applications.

Aside from its various uses and its superior strength, the Abaca fiber helps meet
the growing demand for environment-friendly material, being a natural fiber. Waste
materials from Abaca are useful, too, as fertilizer. The Abaca plant is good to the
environment as it helps improve the water holding capacity of the soil, thereby

" The Philippine Abaca Industry Roadmap 2021-2025 by PhilFIDA


preventing soil erosion, floods, and landslides, and addresses sedimentation problems
in coastal areas where sea fishes breed.

Because of these, Abaca continues to be one of the priority agricultural
commodities of the Department of Agriculture.” This legislation intends to support the
growth of the Abaca industry by institutionalizing the Philippine Abaca Industry
Development Program, a 10-year framework for plans, projects, and policies for
scientific propagation, processing, utilization, and expansion of trade of Philippine
Abaca. The framework shall include plans, projects, and policies on planting site
identification, production support and extension, market promotion, infrastructure
development, quality assurance, and information center establishment.

In view of the foregoing, approval of this bill is earnestly sought.

Rep. YEDDA MARIE K. ROMUALDEZ
Representative /Tingog Sinirangan

Rep. JUDE/. ACIDRE
Representative, Tingog Sinirangan

2 According to Department of Agriculture Philippine Rural Development Project (DA-PRDP)


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

NINETEENTH CONGRESS
First Regular Session

House Bill No, __ 2707

Introduced by

HON. YEDDA MARIE K. ROMUALDEZ
and
HON. JUDE A. ACIDRE

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

Be it enacted by the Senate and 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 2022."

Section 2. Declaration of Policy. \t 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. Council refers to the Philippine Abaca Industry Development Coordinating
Council (PAIDCC) established herewith;
b. Program refers to the Philippine Abaca Industry Development Program
designed to promote competitiveness of the Abaca Industry worldwide; and,
c. Secretariat refers to the Secretariat of the PAIDC as contained herewith


and shall be headed by Philippine Fiber Development Authority (PhilFiDA).

Section 4. Creation of the Philippine Abaca Industry Development
Coordinating Council (PAIDCC). There is hereby created a Philippine Abaca
Industry Development Coordinating Council, hereinafter referred to the Council,
administratively attached to the Department of Agriculture (DA), 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.

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 of the Council. The PAIDCC shall be composed of
the following:
a. Secretary of the DA as Chairman;
b. The Executive Director of PhilFIDA as Head of the Council Secretariat;
c. Head of the National Abaca Research Center (NARC);
d. Secretary of the Department of Environment and Natural Resources
(DENR);
. Secretary of the Department of Agrarian Reform (DAR);
Secretary of the Department of Science and Technology (DOST);
. Secretary of the Department of Trade and Industry (DTI);

- oO

so

. Representative from the League of Municipalities of the Philippines;
i. Representative from the League of Provinces;

Representative from a reputable Private Abaca Industry Association:
k. Two (2) Representatives from Abaca Farmers'/Producers'/Processors'
Associations; and,
|. 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. /nstitutionalization the Philippine Abaca Industry Development
Program (PAIDP). There is hereby established the Philippine Abaca Industry
Development Program within the mandate of the 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:

a. Site Identification. The DENR in coordination with the DA, DAR, and
the local government units (LGUs), 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 DENR and the DOST
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.

c. Production Support and Extension. The DENR, DA, DTI, and the
DOST, in coordination with the LGUs and NGOs, 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, and
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 DTI, in coordination
with Private Industry Associations, shall linkup 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 and transport facilities of existing government
agencies shall be facilitated by the DENR, LGUs, and the DA.

f. Quality Assurance. To ensure health and proper trading, the DTI,
DOST, 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 by-products.

g. Philippine Abaca Information Center. The DTI, in coordination with
LGUs, shall establish a Philippine Abaca Information Center in areas
where abacas are abundant.

Section 7. Creation of Philippine Abaca Development Fund (PADF). 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 (Php 500,000,000.00) 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 (Php
50,000,000.00) 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 (Php
500.000.000.00) 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. Head of the Council Secretariat. The Council Secretariat shall be
headed by the Executive Director of the PhilFiIDA. 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. /mplementing Rules and Regulations. The PAIDCC shall
formulate and prescribe the necessary implementing rules and regulations to carry out
the provisions of this Act.

Section 10. Repealing Clause. All laws, decrees, executive orders and rules
and regulations contrary to or inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

Section 11. Separability Clause. \f any provision of this Act is held invalid or
unconstitutional, the same shall not affect the validity and effectivity of the other

provisions hereof.

Section 12. Effectivity Clause. This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,