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

TWENTIETH CONGRESS
First Regular Session

HoUSE BILL No._578

Introduced by Honorable Representatives
ANTONIO L. TINIO (ACT Teachers Partylist) and
RENEE LOUISE M. CO (Kabataan Partylist)

THE RICE INDUSTRY DEVELOPMENT ACT
EXPLANATORY NOTE

Food security is a fundamental collective right of the people. It is rooted in the right to food,
land, livelihood, and an adequate standard of living, as enshrined in the Universal Declaration
of Human Rights and the Intemational Covenant on Economic, Social and Cultural Rights. In
the Philippine context, rice is centrat—not only as the staple food of over 96 percent of the
population but as the foundation of livelihood for around 3.8 million farmers. Any threat to rice
production is a direct threat to national food security. Thus, the right to accessible, safe, and
affordable food is a shared aspiration of both rice producers and poor consumers.

The enactment of Republic Act No. 11203 or the Rice Liberalization Law (RL) in 2019 was
promoted as a response to the 2018 rice crisis and aligned with the dictates of the World Trade
Organization (WTO). However, nearly six years on, the law's outcomes are damning: it has
intensified the rice crisis, undermined the livelihoods of farmers, and entrenched profiteering
in the rice trade. The dismantling of the National Food Authority's regulatory powers, reduction
of government procurement, and full liberalization of rice importation have eroded the
country's food sovereignty.

Production stagnated despite increased public spending. From 2018 to 2023, net farm
incomes dropped by over P6,000 per hectare while farmgate prices remained flat at
P18.40/kg. Meanwhile, the cost of production soared, driving farmers deeper into debt and
land abandonment. The share of rice imports rose from 14 percent in 2018 to 23 percent in
2022, peaking at 4.68 million metric tons in 2024, a record high for an agricultural country.

Consumers, contrary to promises, never saw P20-per-kilo of rice. From 2019 to 2024. retail
prices increased by 17 percent. Tariff cuts, including the slashing of rice import tariffs from 35
percent to 15 percent under Executive Order No. 62 issued in October 2024, further worsened
the crisis. These measures enriched favored large trader-importers - now controlling 40
percent of import volumes — while devastating local farmers through depressed palay prices
and heightened production costs.

Government responses ranging from the “Kadiwa ng Pangulo” stalls to price ceilings, raids on
hoarders, and rebranding of rice programs like Nutri Rice and Sulit Rice have proven
ineffective, superficial, or outright deceptive. These initiatives failed to curb profiteering or
ensure affordable rice for Filipinos. The amendments to the RLL merely introduced token
regulatory gestures while accelerating liberalization and subsidy-dependent, input-intensive
models benefiting agrochemical corporations.

The policies of the Marcos Jr. administration reflect continuity with its predecessor Rodrigo


Duterte’s neoliberal framework: privatization, deregulation, and liberalization. Far from
providing relief, these policies aggravated food insecurity, inflation, and land displacement.
The illusion of P20-per-kilo rice has collapsed under soaring costs of living and deepening
rural poverty. The administration's allegiance to World Trade Organization directives and
rejection of protective measures like quantitative restrictions directly violates the Filipino
people's right to food, land, and livelinood

The persisting rice crisis is not an isolated problem — it is a chronic manifestation of a
backward, import-dependent, and landlord-dominated domestic agriculture. Like the Marcos
dictatorship's Masagana 99, the current administration of Marcos Jr. champions exactive,
unsustainable policies under the guise of “competitiveness.” These policies have led to the
shutdown of over a thousand rice mills, reduction of post-harvest support, and worsened land
use conversion and massive displacement of farmers.

The path forward is clear. The Rice Liberalization Law must be repealed. In its place, a national
rice industry policy anchored in food sovereignty, agrarian reform, and genuine rural
‘development must be enacted. The proposed Rice Industry Development Act (RIDA) provides
this alternative, with a three-year public investment of P185 billion for direct production support
and P310 billion for revitalizing the NFA’s procurement and market role it mandates a
minimum palay support price of P20/kg and affordable rice at P25/kg for consumers.

RIDA echoes the long-standing calls of grassroots peasant movements such as the Kilusang
Magbubukid ng Pilipinas, Amihan National Federation of Peasant Women, and consumer
groups like Bantay Bigas. Initially presented in 2019 during the 3rd National People’s Rice
Congress and reaffirmed at the 5th National People’s Rice Summit in January 2025, the
proposal has gamered over 80,000 petition signatures nationwide. It reflects broad-based
Unity on the principles of land rights, food sovereignty, and national industrialization.

In the face of rising hunger, poverty, and monopoly control over food systems, the enactment
of this measure is imperative. It is time to reverse a failed and exploitative policy and uphold
the right of every Filipino to food, land, and a dignified life

In view of the foregoing, the immediate passage of this bill is eamestly sought.

FONIO L. TINIO RENEI ISE M. CO
ACT Teachers Partylist Kabatgan Partylist


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

TWENTIETH CONGRESS
First Regular Session

HOUSE BILLNo._978

introduced by Honorable Representatives
ANTONIO L. TINIO (ACT Teachers Partylist) and
RENEE LOUISE M. CO (Kabataan Partylist)

THE RICE INDUSTRY DEVELOPMENT ACT

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

CHAPTER |
Title, State Policies and Objectives
SECTION 1. Title. - This Act shall be known as The Rice Industry Development Act of 2025.

SECTION 2. State Policies and Principles. - The State holds that food security forms part
of the fundamental rights of the Filipino people.

Upon this principle, itis the policy of the State to give the highest priority to the development
of the national rice industry and, in ine with such prioritization, to allocate the public resources
and funds necessary to enhance to the fullest the productive capability of the rice industry,
restructure its distribution and marketing linkages in order to make the industry sustainable,
achieve for the country food security based on food self-reliance and self-sufficiency, increase
the income of rice farmers and improve their living conditions, and ensure the accessibility and
affordability of rice to the consuming population.

Rice importation is injurious to our rice farmers, weakens our rice industry, undermines our
collective efforts to attain food security, and harmful to the national economy in the long run.
To avert these negative effects, the State rejects any policy of giving first preference to rice
importation in fulfiling the needs of the domestic market. In lieu thereof, itis the policy of the
State to fulfill domestic consumption requirements by nurturing our rice farmers towards
enhancing their productive capability

The State sees land use conversion as a serious threat to the sustainability of our agricultural
food base and a clear and present danger to our food security. To protect our rice industry
and to remove the danger to our food security and in orderto align all efforts towards achieving
food self-reliance, itis the policy of the State to prohibit the conversion and reclassification of
rice lands to other uses.


‘The State recognizes the indispensable role of our rice farmers in attaining food security based
on food self-reliance and self-sufficiency. It is therefore the policy of the State to uphold and
promote their welfare and to protect their security of tenure and other rights as farmers.

Finally, it is the policy of the State to develop a national industry that is responsive to the
welfare and interest of rice farmers and consumers and complements the well-rounded
development of agriculture and the local rice industry

SECTION 3. Objectives. - This Act has the following objectives:

a) To develop within a mandated fixed schedule the domestic rice industry and increase its
productivity toward attaining food security based on food self-reliance and self-sufficiency
through:

1. the institutionalization of the provision of necessary and auxiliary production support
program and services to rice farmers;

2. the completion of the infrastructure and facilities requirements for developing the rice
industry; and

3. the creation of a policy and legal environment for the protection of rice farmers and the
rice industry;

b) To increase the income of rice farmers, alleviate their poverty and empower them through:

1, the implementation of transitional measures for poor-focused government support
program for the poorest rice farmers;

2. the institutionalization of viable and enhanced government price support program for
the produce of rice farmers;

3. the creation of structures that will enhance the participation of rice farmers in decision
making on matters related to the rice industry; and

4. the creation of transitory mechanisms for the eventual transfer of production and post-
harvest facilities to the control of rice farmers; and

©) To develop the rice distribution system within the framework of establishing closer linkages
between the rice farmers and consumers to ensure rice affordability for the general public.

CHAPTER II
Definition of Terms

SECTION 4. Definition of terms. - Unless the context provides otherwise, the foliowing
terms are used in this Act to mean as follows:

a. Agrarian reform beneficiaries are farmers who possess the qualifications of the
beneficiaries of the land distribution and tenurial improvement programs of Republic Act
6657 otherwise known as the “Comprehensive Agrarian Reform Law of 1988".

b. Cartel is any group of business entities that should be otherwise in competition with one
another but combine with one another by acting in a way that one act complements or
‘supports the similar acts of others in the combination, enabling the group to dominate the
market through controlling supply and fixing the price. It is a form of collectively rigging the


market as it eliminates competition as the instrument for setting the price of goods and
commodities. In this Act, the term is used to refer to rice cartels.

Collateral-free refers to a loan condition which does not require the putting up of fixed
assets as collateral for the grant of the loan.

Credit auxiliaries refers to farmers’ organizations, rural loan associations or rural credit
cooperatives designated and authorized by the Department to act as structural arms to
help the government extend its credit facility to rice farmers.

Credit cooperatives refers to cooperatives extending loans, the majority of whose
members are rice farmers or whose clientele are rura-based

Department refers to the Department of Agriculture (DA).

Engaging in cartel operations refers to entering into combination with others who are
dealing in the same product and same market and performing acts that are uniform or
complementary to the acts of others in the combination that result in artificial shortage and
in the increase of prices. In this Act, the term is used to refer to rice cartel operations

Farmers’ organizations refer to rice farmers’ organizations consisting of farmers who
have associated or organized themselves to achieve a common purpose or serve their
common interest.

Farm inputs include seeds, fertilizers, herbicides, pesticides and farm tools which are
used for rice production.

Farm machines and equipment are mechanized tools such as hand tractors, power
tillers, sprayers, mini-harvesters, and threshers used in the various processes of rice
production and harvesting;

Farmers’ marketing cooperatives are farmers’ cooperatives which specialize in
marketing their palay produce.

Farm production cooperatives are farmers’ associations or cooperatives whose
membership is based on the labor contribution of their members.

Food security refers to a situation in which the food requirements of the people are
secured and sustained by continuous sufficient supply from local production and are
available, accessible and affordable to the consumers. Its essential element is self-reliance
through self-sufficiency in food production.

Hoarding refers to the undue accumulation by a person or combination of persons of any
basic commodity beyond his or their normal inventory levels or the unreasonable limitation
or refusal to dispose of, sell or distribute the stocks of any basic necessity or prime
commodity from the channels of reproduction, trade, commerce and industry. Under this
Act, hoarding refers specifically to rice hoarding.

Land reclassification refers to the legislative act or process of changing the classification
of lands by the local government units (LGUs).

Land-use conversion refers to the process of changing the use of the land.


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Leaseholder is a farmer who works on the land and pays the landowner a fixed lease rate.

Minimum access volume (MAV) refers to the minimum volume of foreign agricultural
products which a country must allow access to its domestic market, the volume constituting
the minimum share of foreign agricultural products in the domestic market based on certain
proportion of the domestic consumption requirements under the rules of the World Trade
Organization (WTO).

Post-harvest facilities refer to farm facilities used in treating and handling palay after the
harvest; these include threshers, dryers, palay silos, warehouses and mils.

Price support refers to a pricing mechanism in which a portion of the price of goods and
services is paid for by the government.

Private commercial banks are commercial banks owned and operated by the private
sector.

Profiteering refers to the sale or offering for sale of any basic necessity or prime
commodity at a price grossly in excess of its true worth

Production support refers to a package of government support to rice farmers to enable
them to procure farm inputs for rice production.

Research Program refers to the Rice Industry Development Research Program.

Rice crisis refers to a situation in which there occurs a sudden increase in the prices of
commercial rice by more than ten percent (10 %) average of the previous average price,
as determined through investigation by the National Rice Supply Secunty Council using
Metro Manila as reference, which make rice unaffordable to the mass of consumers even
though the rice supply is sufficient; or when the actual combined reserved and buffer
stocks of the National Food Authority is down to fifteen (15) days and there is no incoming
procurement delivery within the next ten (10) days and the rice stocks released by the
private sector into circulation in the domestic market fall for five straight days to below
ninety percent (90 %) of the daily consumption requirements and causes a five (5) percent
increase in rice retail prices, as determined by the National Rice Supply Security Council,
using Metro Manila as reference.

Rice farmer refers to a farmer who plants or produces palay.
Rice smuggling is the act of importing rice or bringing any quantity of rice into the country
and transporting, storing and distributing the imported rice in violation of the policy of this
Act on importation as last option.

Rural loan associations refer to associations of farmers or rural residents who contribute
equity shares and loan the shares to its members.

Security of tenure refers to a state of possession or exercising control over a farm land
peacefully and free from actual and potential threats of ejectment.

Self-sufficiency refers to an attribute in which the food production in the country meets
the supply requirement, eliminating the need to import rice from foreign sources.


ee. Small-scale rice farmers refer to rice farmers who own no lands or whose land or produce
is not enough to meet the requirements of maintaining their families.

ff, Social guarantees refer to guarantees issued by farmers’ production cooperatives or rural
credit cooperatives accredited as credit auxiliaries under this Act, local goverment
officials, or priests in local parishes that vouch for the credit-worthiness of a farmer-
borrower of the Rice Production Socialized Credit Fund.

99. Socialized credit fund or facility refers to the credit facility provided by the state as an
assumed responsibility to help rice farmers. The credit facility is to be exclusively applied
for enhancing rice production.

CHAPTER Il
Implementation Schedule

SECTION 5. Time-bound accelerated implementation. - This Act shall be implemented
within a period of three (3) years the start of which shail be reckoned affer its effectivity.

SECTION 6. Implementation plan. - Within thirty (30) days upon the effectivity of this Act,
the Department of Agriculture shall call a Rice Stakeholders Summit. The Summit shall be
participated by all stakeholders of the rice industry. It shall have the sole purpose of
formulating the Three-Year Implementation Plan for this Act based on its objectives, core
programs and implementation schedule. The Department shall ensure the effective
representation of rice farmers in the summit and its workshops.

CHAPTER IV
Beneficiary-targeting for Focused Poverty Alleviation Program

SECTION 7. Focused poverty alleviation program for special beneficiaries. — This Act
shall have all rice farmers as beneficiaries of its component programs. It also targets the
consumers as the end-use beneficiaries of its restructuring program of the domestic rice
market. However, in implementing and dispensing its component programs, the
Department is hereby mandated to give focus to alleviate the poverty of rice farmers who
‘operate farm units of less than three hectares and rice farmers with annual income below
the rural poverty line as periodically determined by the census of the Philippine Statistics
Authority (PSA). Such farmers shall be the special beneficiaries of this Act.

SECTION 8. Identifying the beneficiaries of focused poverty alleviation programs. -
Within ninety (90) days after the effectivity of this Act, the PSA, in coordination with the
Department, shall conduct a census of all rice farmers in the country. The Rice Famers
Census shall yield the following items of information:

Size of farm unit;

Type of soil of the rice farm;

Condition of the irrigation (whether irrigated or not; if irigated, the type of irrigation);
Farm machines used;

Average production cost per hectare;

Source of capitalization;

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Seed variety used and sources;

Fertilizer use and volume per hectare per cropping;
Herbicide use and volume per hectare per cropping;
Number of children;

Participation of children as labor force for the rice farm;
Gross harvest per hectare;

Cash conversion of their harvest;

Monthly family expenditure; and

Net income.

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The PSA shall isolate the data and information conceming the rice farmers mentioned in the
preceding section and reduced them into a report to be submitted to the Department within
thirty (30) days after the conduct of the census. The report shall serve as the basis for the
Department to identify and locate these beneficiaries for the focused poverty alleviation
program of this Act.

SECTION 9. Department database for focused poverty alleviation implementation and
monitoring. - The Department shall make and maintain a database of the information
contained in the PSA report. The database shall serve as the basis for the focused pouring
of resources of the component programs of this Act to alleviate the poverty of the special
beneficiaries. It shall also serve as a basis for monitoring after every harvest the trends of
income of the special beneficiaries during the implementation of this Act. This monitoring
of the income of the special beneficiaries shall form part of the Department's periodic report
to the Congressional Oversight Committee.

SECTION 10. Special beneficiaries as priority in the Production Support Program. - The
Department shall give priority to the special beneficiaries in dispensing the benefits of the
Rice Production Socialized Credit Program and the Farm inputs Support Program
components of this Act.

SECTION 11. Organizing the poorest rice farmers into special beneficiaries farmers’
associations. - The Department shall organize the special beneficiaries on barangay or
cluster of barangay basis into farmers association. Such associations shall serve as
conduits for the delivery of program services and as partners of the Department in
implementing the focused-intervention program of this Act for the special beneficiaries.

SECTION 12. Appropriate DA personnel organization for special beneficiaries. - The
Department shall form the appropriate organization of personnel that will specialize in
attending to the needs and concems of special beneficiaries during the course of
implementing this Act.

CHAPTER V
Rice Development Zones and Rice Industry Development Councils

SECTION 13. Rice Development Zones. - To more effectively deliver the core programs of
this Act and to attain greatest impact, the Department shall identify the rice areas in the
country with the proven capability to produce above the national average or above the
requirements of the local population or highest potential for increasing rice production and
cluster them into Rice Development Zones. The clustering shall be made up of
municipalities or provinces or inter-regions and on the basis of contiguity and connectivity.


Provided, That there shall be at least two Rice Development Zones in Luzon, Visayas and
Mindanao.

SECTION 14. Rice Development Zones as centers of delivery of core programs. - The
Rice Development Zones shall serve as centers of the convergent and synergized delivery
of the core programs of this Act

SECTION 15. Rice Industry Development Councils and functions. - There shall be in
each Rice Development Zone a Rice Industry Development Council which shall have the
principal function of synergizing the delivery of the core programs of this Act. For this
purpose, it shall convene at least twice a year.

SECTION 16. Composition of RIDCs. - The Rice Industry Development Council shall be
composed of the following:

a. A representative of the Department, preferably the Regional Director or any of its
experts on the rice industry;

A representative of special beneficiaries;

A representative of farmers’ marketing cooperatives;

A representative of rural development civil society:

A representative of rural credit cooperatives or credit unions;

A representative of rural rice women farmers;

A representative of the National Rice Food Security Council;

A representative of the National Food Authority;

‘A representative of the National Irrigation Administration;

A representative of the Department of Public Works and Highways;

A representative of Department of Science and Technology;

A representative of the Department of Interior and Local Government;
A representative of the Local Goverment Unit;

A representative of the Land Bank of the Philippines;

A representative of Philippine Rice Research institute; and

A representative of State Colleges and Universities.

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The Rice Industry Development Councils shall be chaired by the representative of the
Department.

SECTION 17. Rice Development Indicators in Rice Development Zones and reporting.
= The Rice Industry Development Councils shall periodically monitor the implementation
of the core programs of this Act by maintaining for each Rice Development Zone a Rice
Development indicators Profile. The Profile shall be submitted bi-annually to the Secretary
of the Department. The Rice Development indicators shall include the following items of
information:

a. Total number of rice farmers and the actual size of their rice farms;
b. Total hectarage of rice farms;

c. Number of cropping seasons;

d. Total hectarage of rice farms actually planted in the current cropping season;
e. Current production costs per hectare as against previous production costs;

f. Indicative production target per hectare for the cropping season;

g. Current total harvest as against the previous harvest;

h. Current average harvest per hectare as against the previous average:

i. Indicative production shortfall as against the indicative production target;


j. Segregated usage rate among rice farmers, farmers’ organizations and accredited
credit auxiliaries of the RPSCF;

k. Number of private commercial banks which participated in the socialized credit
program;

|. Actual number of farm inputs distributed, segregated as to organic and non-organic,

and actual number of rice farmer-recipients,

Actual number of irrigation facilities segregated as to old and new;

Actual number of post-harvest facilities segregated as to old and new;

Actual number of rice farmers with access to irrigation;

Actual number of rice farmers with access to threshing, drying and rice storage and

other common service facilities;

Accomplishment status of irrigation and post-harvest facilities development projects;

Number of cooperatives actually organized and their operational status;

Forms of extension services and the number of participating state colleges and

universities and actual beneficiaries;

Price set by the NFA in accordance with Section of this Act;

Comparative prevailing price of private grain traders;

Total number of rice farmers who sold their palay to NFA; and

Current per capita income of rice farmers as against the previous.

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The Secretary of the Department shall consolidate the Profiles submitted by the Rice Industry
Development Councils and reduce them into an executive report to be submitted to the
Congressional Oversight Committee and the Office of the President within fifteen (15) days
from the submission from the Rice Industry Development Councils, with copy fumish for the
National Rice Supply Security Council as created under Section 98 hereof. The Department
shall attach the Profiles of each Rice Development Zone to the executive report

CHAPTER VI
Core Programs and Components

SECTION 18. Core programs. - To attain the objectives of this Act, it shall have the following
core programs:

a. Production support program;
b. Focused-poverty alleviation program for the poorest rice farmers

c. Accelerated infrastructure development program for irrigation and post-harvest
facilities;

Research and development and auxiliary support and extension services program;
Rice lands and rice industry protection program;

Strengthening of the NFA for the implementation of enhanced govemment price
support program for farmers and consumers; and

g. Rice farmers empowerment program;

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CHAPTER Vit

Production Support Program


SECTION 19. Institutionalization of production support program. - This Act hereby
institutionalizes a holistic production support program for rice farmers. The production
support program shall consist of the following:

Rice Production Socialized Credit Program;
Farm Inputs Support Program;

Provision of power tillers and threshers; and
Crop insurance.

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SECTION 20. Rice Production Socialized Credit Program (RPSCP). — A socialized credit
program is hereby established for rice farmers to enable them to have access to economic
resources necessary for rice production.

For this purpose, the amount of Twenty-Five Billion Pesos (P25 B) is hereby appropriated and
constituted into a fund which shalll be called Rice Production Socialized Credit Fund (RPSCF).

The RPSCF shall be made available to farmers and farmers’ organizations or farm production
cooperatives as a credit facility for the exclusive purpose of rice production and rice
production-related undertakings.

SECTION 21. RPSCF beneficiaries. - The loan program of the RPSCF shall be extended
only to the following:

a. Rice farmers;
b. Farmers’ organizations engaged in rice production or marketing; and
¢. Farmers’ cooperatives engaged in rice production or marketing

In extending loans to individual rice farmers, the RPSCF shall give priority to the special
beneficiaries mentioned in Section 7 of this Act, the poorest rice farmers as determined by the
Rice Farmers Survey. The amount of Ten Billion Pesos (P10 B) ofthe RPSCF shall be devoted
for this purpose.

It shall also give priority to rice farmers who intend to use the loan for organic rice farming,

In no case shall the loan amount for each farmers’ organization or farmers’ cooperatives
exceed Ten Million Pesos (P10,000,000.00).

SECTION 22. Application of RPSCF loan. - Rice farmers, farmers’ organizations and
farmers’ production cooperatives shall apply the loan they availed of from the RPSCF to
the following undertakings:

a. Purchase of seeds and other farm inputs;

b. Purchase of draft animals;

¢. Purchase of farm equipment and machines such as power tillers, hand-held
harvesters, threshers, and other similar equipment;

d. Purchase or construction of irrigation equipment such as water pumps and tube wells;
and

‘@. Construction of dryers or purchase of drying machines.

In the case of farmers’ organizations and farm production cooperatives, the loans may also
be applied to the following:

a. Purchase of farm machinery for cooperative use;


Construction of water impounding systems for irrigating rice farms;
Construction of drying facilities;

Construction of cooperative palay warehouse;

Seed capital for establishing cooperatives for marketing of palay,
Construction of communal compost pit for making organic fertilizers; and
Financing the putting up of industries that produce palay-derivative products.

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In no case shall the RPSCF be extended to borrowers for purposes not related to rice
production.

The RPSCF shall be deposited with and administered by the Land Bank of the Philippines
(LBP). All repayments from farmer-borrowers, interest earnings and income on the deposit
shall accrue to the RPSCF.

SECTION 23. Interest Rate on Loan. - The interest rate for the loans to be made available
to rice farmers under the RPSCF shall not be more than five percent (5 %) of the principal
amount.

SECTION 24. Collateral-free loan and provision against foreclosure. - The loans to be
made available to individual rice farmers under the RPSCP shalll be collaterafree. The
LBP shall make use of social guarantees as defined in Section 4, (ff) hereof. In cases when
the farmer-borrowers fail to pay their loans, the LBP shall observe the provisions of Section
28 hereof,

SECTION 25. Farmers’ organizations, rural loan associations, and credit cooperatives
as credit auxiliaries of the RPSCF. - The Department shall have the authority to accredit
farmers’ organizations, rural loan associations or credit cooperatives as credit auxiliaries
of the RPSCF: Provided, that such farmers’ organizations, rural loan associations, and
credit cooperatives are duly registered with the Cooperative Development Authority (CDA).

Farmers’ organizations, rural loan associations and credit cooperatives accredited as credit
auxiliaries of the RPSCF can access the RPSCF for the maximum amount of Ten Million
Pesos (P10,000,000.00) at three percent (3 %) interest rate for extending credit to their
members who are rice farmers: Provided, that they shall not charge their members more than
Eight percent (8 %); Provided further, that the amount from the RPSCF to be made accessible
to credit auxiliaries shall not exceed Twenty per cent (20 %) of the RPSCF

The Department, in consultation with the LBP and representatives of farmers’ organizations,
tural loan associations and credit cooperatives, shall formulate the criteria, standards and
procedures for the accreditation and participation of farmers’ organizations, rural loan
associations and credit cooperatives as credit auxiliaries of the RPSCF.

The interest collected from the credit auxiliaries shall accrue to the RPSCF and not to the
capital fund of the accredited credit auxiliaries.

Farmers’ organizations, rural loan associations and credit cooperatives accredited as credit
auxiliaries of the RPSCF may extend loans under the RPSCF to non-members as long as the
applicants are rice farmers.

SECTION 26. Simplifying the procedure for loan dispensation. - The RPSCP shall have
a simplified procedure for filing, processing and approval to make it accessible, easy,


quickly available and at minimum costs to rice farmers. The LBP, in consultation with the
Department, shall formulate the guidelines for this purpose.

SECTION 27. Incentives for participating private commercial banks. - Private
commercial banks which extend production loans to rice farmers with interest rate provided
in Sections 10 and 11 hereof shall be entitled to tax credits of fifteen per cent (15 %) of the
amount of the capital they devoted to rice production loans. Private commercial banks
which continue to extend production loans to rice farmers after the end of the three (3)
year implementation period of this Act shall continue enjoying tax credits at ten per cent
(10 %) of the amount of the capital they devoted to rice production loans.

SECTION 28. Non-payment of loans. — In case of failure of an individual rice farmer to pay
the Joan, the LBP or the credit auxiliaries from which the farmer incurred the loan shall
automatically renegotiate or restructure the loan of the indebted farmer until the loan is
fully paid. The LBP shall formulate the guidelines for this purpose: Provided, that in no
case shall the restructuring operate to effect the loss or foreclosure of the land of the
indebted farmer nor shall it give effect to the blacklisting or disqualification of the indebted
farmer from being a beneficiary of the RPSCP.

Credit auxiliaries from which the farmer incurred the loan may also extend assistance to the
indebted farmer so that the indebted farmer can pay the loan without affecting his necessary
family expenses. The assistance shall include, but shall not be limited to, allowing at reduced
cost the indebted farmer to use the farm implements, working animals and farm inputs
belonging to the credit auxiliaries.

SECTION 29. Automatic moratorium. - In times of natural or man-made calamities, the LBP,
the credit auxiliaries and private commercial banks who extend rice production loans to
farmers shall automatically extend a moratorium of six (6) months on the payment of loans
and their interests. Excepting the interests, they shall not impose any other penalties and
charges. The moratorium shalll cover the entire area declared as under a state of calamity
by the President.

SECTION 30. Farm Inputs Support Program. - Upon the effectivity of this Act, the
Department shall institutionalize a Farm Inputs Support Program that shall consist of
distributing to rice farmers, farmers organization and farmers producers cooperatives farm
inputs at discounted prices. The farm inputs shall include seeds, fertilizers, herbicides,
farm tools and other necessaries for rice production.

SECTION 31. Organic rice farming. - In implementing the Farm Inputs Support Program,
the Department shall give emphasis to procuring and distributing the farm inputs with the
primary consideration of promoting organic rice farming in progression. It shall conduct
massive training of rice farmers on the technology of organic rice farming.

Each Rice Development Zone shall have at feast one (1) pilot area for organic farming

SECTION 32. Schedule of discount for seeds and other farm inputs. - The seeds and
other farm inputs procured by the Department shall be:

a. distributed free to the special beneficiaries as a measure of full subsidy; and
b. sold to all other farmers at less twenty-five per cent (25%) of their purchase price.


The Department shall ensure that the distribution of seeds and other farm inputs to rice
farmers shall be made thirty (30) days before the start of cropping season.

SECTION 33. Seed selection and fertilizer distribution. — In the purchase and distribution
of seeds, the Department shall ensure that rice farmers shall have a wide selection of seed
varieties in accordance with the knowledge and farm practices developed or existing in
their communities.

The Department shall make full use of its database and mapping of soil types as basis in
distributing fertilizers to rice farmers, As much as practicable and according to adaptability to
the knowledge and farm practices prevalent in different areas of the country, the distribution
shall be based on the best applicability to the soil types in the area.

‘SECTION 34. Incentives for use of traditional varieties, organic farming and indigenous
rice farming practices. - The Department shall formulate an incentives scheme for rice
farmers who shall use traditional varieties, organic farming, and indigenous rice farming
practices.

SECTION 35. Provision of power tillers and threshers. - The Department shall
institutionalize a distribution program of power tillers and threshers to rice production
cooperatives or organizations.

SECTION 36. Crop insurance. — A portion of ten percent (10 %) of the principal amount of
the loan extended to rice farmers under the RPSCF shall be charged each rice farmer for
the full insurance coverage of his crops with the Philippine Crop Insurance Corporation;
Provided, that full crop insurance coverage shall be extended to the special beneficiaries
of this Act.

CHAPTER Vill
Accelerated Infrastructure Development Program

SECTION 37. Accelerated Infrastructure Development Program. — The Accelerated
Infrastructure Development Program shall consist of the irrigation development program
and post-harvest facilities development program. The concemed government agencies
responsible for implementing these programs are hereby mandated to complete their
construction and development within three (3) years as provided in Section 5 hereof and
ensure their operational sustainability, including the provision for maintenance.

A. Accelerated Irrigation Development Program

SECTION 38. Accelerated completion of irrigation requirement. - Within ninety (90) days
upon the effectivity of this Act, the National Irrigation Authority (NIA) shall have drawn up
a Program of Implementation for the accelerated completion of the construction of
irrigation facilities and the rehabilitation of existing irrigation facilities based on an inventory
and parallel assessment of existing irrigation system of the country and taking into account
the preservation of natural ecosystems, appropriate technology and the requirements for
attaining rice self-sufficiency. At the end of three (3) years, the NIA Program of
Implementation shall achieve a one-hundred percent (100 %) irrigation of all rice lands of
the country and shall include a maintenance program and incorporate the inventory and
parallel assessment.


SECTION 39. identifying priority areas. — In identifying priority areas for the accelerated
completion of the construction of irrigation facilities, NIA shall take into account the
following factors:

Areas designated as Rice Development Zones;

Provinces with low irrigation development;

Municipalities and areas with high density of rice farmers,

Municipalities and areas with low rice productivity; and

Rice areas recommended by rice farmers or farmers’ organizations or farmers’

cooperatives, agrarian reform beneficiaries who are rice farmers, farmers irrigators’

association and indigenous peoples.

paege

SECTION 40. Project criteria. — For NIA to be able to complete the construction of irrigation
facilities requirement within the mandated schedule, its Program of Implementation shall
give focus on constructing medium and small-scale irrigation facilities, small water
impounding projects and communal-type irrigation or similar facilities with low social costs
but high benefits and the technical preparation of which can be done within ninety (90)
days and the construction of which can be completed in one-hundred eighty (180) days or
less.

SECTION 41. Management and administration. - The management and administration of
small-scale irrigation projects shall be tured over to the farmer-beneficiaries through their
farmers’ associations, irrigators’ associations or farmers’ cooperatives upon project
completion: Provided, that the NIA shall shoulder the maintenance cost and provide
continuous technical support to the farmer-beneficiaries to whom the projects would be
tumed-over; Provided further, that the recipients of the turn over shall make the facilities
available to rice farmer-beneficiaries in accordance with Republic Act 10969 or the Free
Irrigation Services Act.

SECTION 42. Budget allocation for accelerated irrigation infrastructure development. —
Of the funds appropriated under this Act for the accelerated irrigation development
program, eighty percent (80 %) shaill be used for the construction of new irrigation projects
while the twenty percent (20 %) shall be earmarked for rehabilitation and repair works of
existing irrigation facilities.

B. Post-Harvest Facilities Development Program

SECTION 43. Development of post-harvest facilities. - In coordination with local
‘government units (LGUs), the National Food Authority (NFA) and the Department, through
its Philippine Center for Post-Harvest Development and Mechanization (PhilMech), shall
draw up an integrated three-year Program of Implementation for completing the
construction of dryers, rice storage and other common service facilities that are needed in
the rice producing municipalities and barangays and the construction of warehouses that
are needed in the Rice Development Zones and other rice producing provinces and
regions. At the most practicable, the Program of Implementation shall see to it that the
facilities are based on appropriate technology, strategically optimized project siting and
cost-benefit analysis and will holistically form a national post-harvest chain that will
address issues of post-harvest losses, high transportation costs and deterioration of
product quality

The Program of Implementation to be crafted jointly by the Department and the NFA shall
integrate the post-harvest facilities projects undertaken by LGUs.


The PhilMech shall provide the research and advisory requirement for determining the
appropriate technology of the post-harvest facilites.

SECTION 44. Roles of the Department and the NFA. - The Department shall have the
primary role of implementing the construction of post-harvest facilities in rice producing
municipalities and barangays. For this purpose, it shall have supervisory function over
post-harvest facilities projects undertaken by the LGUs.

The Department, through its PhilMech, shall launch a nationwide training program that will
disseminate the appropriate technology down to the rice farmers and build the institutional
capability of their organizations or cooperatives to operate and maintain these post-harvest
facilities.

The NFA shall have the primary role of implementing the construction of warehouses in Rice
Development Zones and other rice producing provinces and regions.

Both agencies shall ensure the completion of all the component projects of their integrated
Program of Implementation within three (3) years.

SECTION 45. Administration of municipal and barangay post-harvest facilities. - Upon
completion of the construction of municipal and barangay post-harvest facilities, the
Department shall turn them over for administration and maintenance to concemed LGUs
where the facilities are located

The concemed LGUs may opt, or upon application by a barangay-LGU, a farmers’
‘organization or a farmers’ cooperative, to turn over these post-harvest facilities to qualified
barangay-LGU, farmers’ organizations or farmers’ cooperatives: Provided, that the barangay-
LGU, farmers’ producers organization or farmers’ cooperative has been certified by the
PhilMech to have undergone the knowledge-transfer training and have acquired the
institutional capability to operate the post-harvest facilities.

All municipal and barangay post-harvest facilities tumed over to barangay-LGUs, farmers’
organizations or farmers’ producers cooperatives shall be under the supervision of the Local
Rice Supply Security Councils as created under Section 90 hereof.

SECTION 48. Mechanisms for maintenance of post-harvest facilities. — To help defray
the maintenance costs of the municipal and barangay post-harvest facilities, the LGUs or
the farmers’ organization or farmers’ producers cooperative to which they are tumed over
shall be allowed to collect reasonable fees for the use of the facilities: Provided, that no
collection or increase of service fees shall be imposed without:

a. In the case of the municipal LGU, the approval of the Sangguniang Bayan through a
resolution that has undergone wide public hearing;

b. In the case of a barangay-LGU, the approval of the majority of the farmers in the
barangay; and

c. In the case of a farmers’ organization and farmers’ cooperative, the approval of the
majority of its members and the concurrence of the Local Rice Supply Security Council

The fees on the use of municipal and barangay post-harvest facilities shall be used exclusively
for the maintenance of these facilities and in no case shall any fee be collected other than for
defraying the maintenance costs for the facilities.


SECTION 47. NFA inventory of its post-harvest facilities. - Within thirty (30) days after the
effectivity of this Act, the NFA shall make an inventory of its dryers, warehouses and other
post-harvest facilities and ensure that they are operational and viable. For deteriorating
post-harvest facilities under its contro! and administration, the NFA shall integrate, where
practicable, their repair and rehabilitation into the integrated Program of Implementation.

SECTION 48. Authority of NFA to dispose non-productive post-harvest facilities. - The
NFA shall have the authority to dispose, sell or lease to private entities any of its post-
harvest facilities that the inventory has found to be performing below fifty percent (50 %)
of their capacity or beyond repair and rehabilitation.

If the NFA decides to sell or lease out these facilities, it shall make the offer first to farmers’
‘organizations or farmers’ producers cooperatives.

SECTION 49. Regulating dryer and warehouse fees operated by private entities. —
Dryers and warehouses operated by private entities, including farmers’ organizations or
farmers’ producers cooperatives which rent out these facilities to non-members, shall be
regulated by the concemed LGUs. If the regulating LGU is the barangay-LGU, the
regulation must be supported by a barangay resolution approved by a majority of the
farmers in the barangay. If the regulating LGU is the municipal-LGU, the regulation must
have the approval of the Sangguniang Bayan through a resolution that has undergone
wide public hearing;

SECTION 50. Responsibility of LGUs. - For a period of three (3) years, LGUs in rice
producing provinces and municipalities shall annually allocate a portion of their budget as
their contribution for the construction of post-harvest facilities in their jurisdictions, three
percent (3 %) in the case of provinces and two percent (2 %) in the case of municipalities.

CHAPTER IX
Research and Development and Extension Services Program

SECTION 51. Research and development of appropriate technology for different rice
production systems. — The Philippine Rice Research Institute (PhilRice) shall add to its
Research and Development Structure and devote a considerable portion of its resources
and efforts to the development of multi-disciplinary, ecosystem-based and ecosystem-
friendly appropriate technology and technical support systems for the different rice
production systems in the country.

{ts research program shall promote organic rice farming and such other production technology
based on indigenous materials, resources, knowledge and skills with the end view of reducing
costs and attaining self-reliance in terms of sourcing rice farming inputs.

SECTION 52. Extension Services Program. - The Department, in coordination with state
colleges and universities, and in consultation with farmers and their farmers’ organizations
and production cooperatives or the Local Rice Supply Security Councils of LGUs, shall
formulate an extension services program focused on enhancing the production skills and
knowledge of rice farmers and in building their capability through their farmers’
organizations, production and marketing cooperatives. The program shall strengthen the


direct complementary role of the national government in the delivery of extension services
by LGUs to rice farmers.

SECTION 53. Areas of Extension Services. — The extension services program shall have
the following major areas of services:

a. Training and education services: this shall include the provision of trainings to help rice
farmers organize cooperatives and other forms of mutual-aid and self-reliant societies,
including trainings on cooperative management, project management and monitoring,
finance administration, accounting, capability building, project feasibility analysis and
fund sourcing:

b. Production technology consultancy and advisory;

¢. Consultancy and advisory on cooperative development and related matters; and

d. Marketing information and communication.

The extension services shalll include the periodic upgrading of the technical skills, knowledge,
and professional competence of extension service workers

SECTION 54. Pooling and networking of extension services. — The Department shall
establish linkages with the agricultural extension programs of state colleges and
universities and private schools with rural development extension programs, to hamess
their extension service capabilities and programs for rice farmers. it shall use such linkages
for recruiting agricultural students for volunteer extension service, programmed rural
immersion, and apprenticeship in the major areas of services mentioned in the preceding
section

‘The Department shall also tap non-government agricultural resource centers and institutions
in the rice areas of the country and establish linkages with them to avail of their resource and
‘extension services and programs.

Upon the approval of concerned state colleges and universities and private schools with rural
development extension programs, an agricultural or community development student who has
rendered a one-year volunteer extension service, immersion or apprenticeship in any of the
major areas of extension services mentioned in Section 53 hereof shall be credited with having
completed the thesis requirement of his or her course.

SECTION §5. Capability-building for rice farmers. - The Department shall ensure the
participation of rice farmers and their organizations in extension services. It shall ensure
through education, training and seminar workshops the formation of technicians and
production advisers from among rice farmers and members of farmers’ organizations and
farmers’ producers cooperatives. It shall complement the training and seminar workshops
with a program for the periodic and continuous upgrading of their technical skills and
knowledge.

SECTION 56. Information network for rice farmers. - The Department in coordination with
the Department of Science and Technology (DOST), Department of Information and
‘Communication Technology (DICT), NFA, LGUs, and other appropriate government
agencies, shall establish a computerized national network of information from the national
to the provincial and municipal levels. The information network shall serve as resource
procurement and marketing support services for rice farmers. It shall include, but not
limited to, the following:


a. Directory of non-government organizations and institutions that provide resource
dissemination, management, technical, organizational or legal services to rice farmers;
‘Supply and comparative price trends of rice production inputs;

Rice demand data;

Rice supply data;

Timely advisory and forecasts on palay prices of the NFA and private traders; and
Directory of trading centers, including listing of traders and farmers marketing
cooperatives.

seas

‘The Department shall make the information network available on its websites.

SECTION 57. Promoting computer literacy among rice farmers. - The Department shall
Promote the computerization of the operation of farmers’ organizations and their
production cooperatives, rural loan associations and credit cooperatives. Its training and
education services shall include basic computer literacy for rice farmers.

CHAPTER X
Rice Lands and Rice Industry Protection Program
A. Protection of Rice Lands

SECTION 58. Rice lands as zones of special protection. — As the primary food base of the
country and consistent with the state policy of protecting our rice industry, all rice lands in
the country are hereby declared as zones of special protection.

SECTION 59. Prohibition against reclassification. — In pursuance of the preceding
Section, the reclassification by municipal-LGUs of agricultural lands devoted to rice
production shall be strictly prohibited.

SECTION 60. Prohibition against conversion of rice lands into other uses. ~ Similarly,
the conversion of rice lands into other uses shall be strictly prohibited and is hereby made
a criminal offense.

SECTION 61. Prohibition against destruction of rice lands and diminishing their
sustainability, economic viability or ecological soundness. — It is likewise strictly
prohibited for any person to perform such acts that cause the diminution of the economic
Viability or productivity of existing rice lands, or such acts that destroy or undermine the
sustainability of rice production in rice lands, including the destruction of their ecological
soundness. Such acts include the following:

a. Destroying water systems, whether natural or man-made, or diverting or impeding their
flow that causes rice lands to lose their sources of irrigation, making i appear that the
affected rice lands are no longer economically viable;

b. Large-scale cutting of trees that destroys the biodiversity of rice lands;

Quarrying that will have the same effect of destroying the biodiversity of rice lands;

d. Contaminating rice paddies or water systems that irrigate rice fiekis with mercury and
other similar harmful elements or chemicals; and

@. Failure to prevent the spill of mine wastes to rice fields


SECTION 62. Prohibition against crop conversion. ~ The conversion of rice lands into
other crops is also prohibited.

SECTION 63. Land reclassification review mechanism. - The Local Rice Supply Security
Council is hereby mandated to review all reclassification ordinances and resolutions
passed by LGUs before the effectivity of this Act. Where the ordinance or resolution has
covered rice lands and the rice lands have remained productive or have not been
physically converted for more than three (3) years after their reclassification, the Local
Rice Supply Security Council shall make the proper recommendation on the viability of
reverting the rice lands to their former agricuttural classification.

If the Local Rice Supply Security Council recommends reversal and the recommendation is
supported by a signed petition of a majority of the farmers who are legitimate voters or
residents of the city or municipality, the Local Rice Supply Security Council shall submit its
recommendation and the signed petition to the sanggunian or the legislative council of the
concemed LGU. If, after thirty (30) days from the receipt of the recommendation and the
signed petition, the sanggunian fails to act on the recommendation and signed petition of the
majority of farmers, the Local Rice Supply Security Council shall submit the recommendation
and the signed petition to the provincial office of the Department of Interior and Local
Government.

The DILG Provincial Director or any DILG official designated for the purpose shall then, within
thirty (30) days from the receipt of the recommendation and the signed petition, verify the
residency of the signatories, the authenticity of the signatures and as to whether the number
of signatories constituted a majority of the farmers in the concemed LGU. if the DILG
Provincial Director finds the petition valid as to the residency of the signatories, the authenticity
of the signatures and the authenticity of claimed majority, it shall issue a certification to that
effect, register the petition in the municipal registry of ordinances and cause its publication in
three (3) newspapers of local circulation. After fifteen (15) days from the date of publication,
the petition shall be deemed to have become an ordinance and the rice lands shall be deemed
to have been reverted to their former agricultural classification

B. __ Protection of the Rice Industry From Harmful Effects of importation

SECTION 64. Policy of local production preference to meet the buffer stock
requirement of the NFA. -{n cases when its actual reserves and buffer stocks combined
are below one hundred-five (105) days, the NFA is hereby mandated to fill the shortage
from local production. In no case shall it resort to importation when the locai rice production
can fill the shortage.

SECTION 65. Policy against rice importation. - As a general rule, rice importation is hereby
prohibited. As an exception, it shall only be resorted to upon recommendation of the
National Rice Supply Security Council, as created under Section 98 hereof, after it has
determined through investigation the existence of a rice crisis. The decision to import rice
shall be made in accordance with the next Section

SECTION 66. Steps to be taken before resorting to rice importation during the rice
crisis. — At the first sign of an apparent sudden increase of rice prices or a critical
inadequacy of rice supply in the domestic market, the National Rice Supply Security
Council shall conduct an investigation to determine if the extent of the price increase or


‘supply inadequacy constituted a rice crisis as defined in Section 4 (y) hereof. If a rice crisis
exists, it shall include in its report the following

a. Adeclaration of the existence of rice crisis;

b. A determination if the rice crisis is caused by hoarding or by manipulation of the local
supply in which case the National Rice Supply Security Council shall recommend to
the President measures for compelling the manipulators to release the rice supply in
their hands;

¢. Adetermination ifthe rice crisis is local or national, Ifthe rice crisis is local, the National
Rice Supply Security Council shall recommend measures on how the national supply
may be distributed to address the local crisis; and

d._ If the rice crisis is national, the National Rice Supply Security Council shall certify that
local food production cannot fill the inadequacy. Only in such a situation may it
recommend the resort to rice importation.

The National Rice Supply Security Council shall have three (3) days to finish and submit its
investigation report and recommendations to the President.

If the President finds from the report of the National Rice Supply Security Council that possible
criminal acts were committed by private individuals or government officials in the course of the
existence of the crisis, he shall direct the Department of Justice to investigate the case and to
file the appropriate criminal charges thereon.

SECTION 67. Price Ceiling on Rice. - In the conduct of investigation for determining the
existence of the rice crisis to be made at the first sign of apparent inadequacy of rice supply
in the domestic market, the National Rice Supply Security Council shall have the authority
to implement measures to arrest the skyrocketing of rice prices. It shall have the authority
to order the freezing of rice prices or a return to the price status quo ante. If there is prima
facie evidence of manipulation of prices during the period of investigation, the National
Rice Supply Security Council shall set a ceiling of rice prices which shall not be more than
two percent (2 %) of the price prevailing before the inadequacy situation. The order of the
National Rice Supply Security Council freezing the rice prices, reverting the rice prices to
status quo ante or setting a ceiling to rice prices shall remain in force until reversed by the
President upon recommendation by the National Rice Food Security Council

CHAPTER XI

Strengthening the NFA, Enhancing its Palay Procurement Program
And Price Support Program for Consumers

SECTION 68. Mandate and Role of the National Food Authority. - The National Food
Authority is an integral pillar in the national effort to attain food security for the country
based on tice self-reliance and self-sufficiency, increase the income of rice farmers,
stabilize the supply and price of rice in the domestic market, and ensure the accessibility
and affordability of rice to the public, especially the poor among the consumers. These
national goals are hereby incorporated into its mandate. The authority and functions of the
NFA are likewise hereby reoriented towards attaining these national goals.


In consonance with the provision of this Section and with the State Policies of this Act, the
NFA shall be the sole authority to import rice upon the recommendation of the National Rice
Supply Security Council.

SECTION 69. Forty-five days Rice Reserve and Sixty days Buffer Stocking. - Consistent
with the expanded mandate of the NFA as provided in the preceding Section, the NFA is.
hereby mandated to maintain a Reserved Stock good for forty-five (45) days continuing
and a Buffer Stock good for sixty (60) days continuing to be exclusively sourced from local
Production except when ordered by the President to import rice in accordance with Section
66 hereof.

The Reserved Stock shall be the NFA’s stocks for calamities and the marginalized
sectors while the Buffer Stock shall be its strategic stocks for market participation.

SECTION 70. Condonation of all existing loan obligations. ~ So it can better fulfil its
expanded mandate and functions and start afresh on sound and stable financial footing,
the NFA is hereby relieved from payment of alt its loan obligations, including interests due
thereon, with the LBP and the Development Bank of the Philippines.

SECTION 71. Procurement of palay at farm gate price. — The NFA shall procure at least
twenty-five percent (25%) of the total palay production at farm gate price that guarantees
rice farmers a reasonable rate of returns.

To achieve this procurement target, it shall establish a system that will bring its procurement
closest to rice producing areas and communities.

SECTION 72. Schedule of support-pricing on farm gate and establishment of
procurement centers. - The NFA shall purchase palay from rice farmers using the
following price schedule:

a. At Twenty Pesos (P20.00) per kilogram for the calendar year 2018 or upon effectivity
of this Act; and

b. After the initial year, the NFA shall review the farm gate price every year taking into
Consideration the impact of inflation rate on fuel and rice production. Ifthe review finds
the cost of rice production to have increased by one point five percent (1.5 %) of the
Previous production cost, the NFA shall adjust the farm gate price accordingly, using
as reference the national average farm gate price of the preceding year as posted by
the Philippine Statistics Authority.

SECTION 73. Setting of farm gate price prior to every cropping season. - The NFA shall
review, set and announce the farm gate price prior to every cropping season, not later than
the months of May and October.

SECTION 74. Strengthening linkage between NFA and rice farmers at the farm gate. -
In purchasing palay from rice farmers, the NFA shall promote the cooperative marketing
of palay among rice farmers, particularly small-scale rice farmers, as a mode for tightening
the procurement linkage between the NFA and the rice farmers at the farm gate. For this,
purpose, the NFA shall devise a scheme for enrolling farmers’ organizations or their
marketing cooperatives as its procurement arm. The scheme shall have an incentives
package for participating farmers’ organizations or cooperatives.


SECTION 75. NFA authority to requisition the rice supply of the private sector and
dispose it to address rice crisis or state of calamity. — During rice crisis as declared
by the National Rice Supply Security Council in accordance with Section 66 hereof or when
a state of calamity has been declared over the entire country or over a specific region or
province, the NFA shall have the authority to requisition the rice stocks in the control of
private traders to strengthen its response capability to such exigencies. The requisition
cost shall be the price at which the rice has been bought from the farm gate by the private
traders. In the National Capital Region and other metropolitan cities, the requisition cost
shall take into consideration and include the actual transportation cost incurred in hauling
the rice stocks from their origin.

For this purpose, all rice traders who operate warehouses, storage facilities for rice or other
similar structures used for volume stocking of rice, are hereby required to monthly submit to
the NFA, copy furnish the National Rice Supply Security Council, the appropriate documents,
such as warehouse receipts and a verified inventory of their rice stocks, that will show the
volume of rice stocks in their control or in their warehouse, including incoming stocks and
releases for circulation. The NFA shall make a directory of such warehouses and their
operators as well as a monitoring system based on those documents that will give information
on where the volume of rice can be found in real time.

The NFA shall make use of available communication and information technology to place its
requisition: Provided, that any requisition using such technology shail be formalized through
official documentation within forty-eight hours.

SECTION 76. Effect of refusing NFA requisition. - The act of refusing NFA requisition is
hereby considered as abetting the rice crisis or the state of calamity which shall be a
ground for canceling the rice trade or warehouse permit of the private trader or operator.

SECTION 77. Subsidized-pricing for retail rice. - The NFA shall ensure that its marketed
fice is available, accessible and affordable to the consuming public, especially the
marginalized and poorest sectors. It shall sell it at retail prices not higher than twenty-five
percent (25 %) of the procurement price at farm gate.

SECTION 78. Separate budget for NFA procurement program. ~ Using simulated
forecasts of consumption requirements and such other necessary information, the NFA
shall craft a palay procurement program that is good for three (3) years upon which its
procurement budget shall be based. Such a budget shall be entirely released to the NFA
0 it can have financial flexibility in pursuing its procurement program which it shall renew
or revise at the end of the second year and submit to Congress. The Department of Budget
and Management shall make a special account and procedure for the releases of the
three-year procurement budget of the NFA.

For the first three (3) years upon the effectivity of this Act, the NFA shall have an annual
procurement budget of One Hundred Three Billion Three Hundred Thirty Million Pesos
(P103.33 B) which shall be immediately released to the NFA afer it has submitted a
three (3) year procurement plan.

CHAPTER Xil

Rights of Rice Farmers


SECTION 79. Security of tenure of rice farmers. - Consistent with the state policy affirming
the indispensable role of rice farmers in developing the rice industry towards achieving
food security for the country, rice farmers shall have the right of security of tenure over
their farm land. They shall not be ejected from their farm holdings or their homes, crops
and farm structures demolished unless directed by a final decision or order of the court.

SECTION 80. Trial moratorium of ejectment cases against rice farmers during the
implementation schedule of this Act and cooling off period thereafter. - During the
three (3)-year implementation of this Act, in order not to disrupt the delivery of services of
its core programs to the rice farmer beneficiaries, no trial of any ejectment case, or any
similar case that will result in ousting, shall proceed against any rice farmer who is a
beneficiary of any of the core programs of this Act. The judge or court with competent
jurisdiction over the case shall suspend its proceedings upon the submission by the rice
farmer of a certification from the Department that he is a beneficiary of any of the core
programs of this Act.

Thereafter, any writ of execution issued by a court of competent jurisdiction that will have the
effect of ejecting such a rice farmer shall incorporate into the writ a cooling off period of one
(1) year.

SECTION 81. Punishing invalid writ of execution. - In all ejectment cases, or any similar
case that will result in ousting, against rice farmers who are beneficiaries of any of the core
programs of this Act, no court or tribunal shall issue a writ of execution unless all pending
issues, including motions for reconsideration of the rice farmers, have been resolved. The
failure of any judge or court of competent jurisdiction to observe this requirement shall
render the writ invalid and any action of any government official on the basis of such writ
is ilegal and punishable.

SECTION 82. Private acts of ejectment are criminalized. - Any private act of ejecting the
rice farmer who is a beneficiary of this Act or destroying their crops or farm structures that
will have the same effect of ejectment without any valid court order is hereby made a
criminal offense which is separate from other criminal acts that a private person may have
committed in the course of ejecting a rice farmer without a court order.

SECTION 83. Duty of the Department to provide legal services and aid. - The
Department shall have the duty to provide legal services and aid to rice farmers who are
beneficiaries of any of the core programs of this Act but subjected to eject ment cases or
harassment suits.

SECTION 84. DAR AO No. 03-11, Series of 2011 applies when the rice farmer is an
agrarian reform beneficiary. — If the rice farmer subjected to ejectment, or any similar
case seeking to oust him from his farm land, is an agrarian reform beneficiary under the
Comprehensive Agrarian Reform Law and other agrarian reform laws, the judge or court
shall apply the provisions of Department of Agrarian Reform Administrative Order No. 03-
11, Series of 2011, as to the rice farmer. The DAR AO No. 03-11, Series of 2011, is hereby
incorporated as part of this Act.

SECTION 85. Right against unscrupulous land rent. - Rice farmers who are tilling farm
lands under tenancy or leasehold, including farmers’ organizations and farmers’
production cooperatives which lease lands for rice production, shall not be subjected to
land rent that is more than ten percent (10%) of the average net harvest per hectare in the
last three consecutive years. All contracts, whether written or unwritten, that exceed this


threshold, including non-cash charges or other exactions added on top of the rent, are
hereby declared as void and are considered reformed in accordance with this section.

SECTION 86. Right against arbitrary deductions on loans and exorbitant interest rates.
— Rice farmers have the right against arbitrary deductions and exorbitant interest rates on
loans. Rice farmers shall only be charged to pay the principal amount and interest. All
interest rates for loans taken by rice farmers, including farmers’ organizations and farmers’
cooperatives, from private entities shall conform to the provisions of Sections 23 and 24
hereof and are considered reformed in accordance therewith upon the effectivity of this
Act.

SECTION 87. Right against unfair trade practices. — Rice farmers and their organizations
or cooperatives shall have the right against unfair trade. The following are unfair trade
practices:

a. Buying the palay product of rice farmers at prices below the farm gate price set by the
NFA;

b. Tacking into loan agreements the condition that binds rice farmers to sell their palay
product to the creditor at prices lower than the NFA farm gate price and such similar
acts that deprive rice farmers the opportunity to seek better prices for their products;

¢. Tacking into loan agreements the condition that binds rice farmers to procure their farm
inputs and rent farm tools and equipment from the creditor at prices or rates higher
than other suppliers and such similar acts that deprive rice farmers the opportunity to
seek lower prices or rent for their needed farm inputs and equipment; and

d. Charging arbitrary deductions and exorbitant rates in milling, threshing, drying and
other similar services.

SECTION 88. Right of rice farm workers to family living wage. — Agricuttural workers in
rice farms shall have the right to a family living wage. Agricultural workers working under
piece-meal, pakyawan or any other similar arrangement who have rendered eight hours
of work shall be entitled to the payment of living minimum wage set by law.

CHAPTER Xill
‘Strengthening Rice Farmers Towards Self-Reliance

SECTION 89. Promoting cooperatives among rice farmers. — The Department shall make
it part of its extension services the strengthening of the ranks of rice farmers to make them
self-reliant. For this purpose, it shall promote cooperatives and self-reliant organizations
among rice farmers, giving focus on forming cooperatives of small-scale rice farmers or
rice farmers with annual income below the rural poverty threshold. As much as practicable,
it shall promote the following types of cooperatives:

Farm resources procurement and sharing cooperatives;
Credit cooperatives;

Production and labor-sharing cooperatives;

Marketing cooperatives
Irrigation cooperatives; and
Consumers cooperatives.

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CHAPTER XIV
Local Rice Supply Security Councils

SECTION 90. Municipal/City Rice Supply Security Councils and their functions. - LGUs
of municipalities and cities shall create and constitute a rice food security watchdog to be
called the Local Rice Supply Security Council. Such Council shall be constituted within
thirty (0) days from the effectivity of this Act. it shall have the following functions:

a. Gather data for the Household Rice Food Security Index and ensure its in publication;

b. Review the land use and reclassification ordinances and resolutions in their
municipalities and cities and to make the corresponding proper recommendation and
representation to the local legislative council for its action in accordance with the
provision of Section 63 of this Act;

¢. Monitor local legislations that affect the rice industry in their municipalities and cities;

d. Facilitate with the end-view of ensuring the participation of rice farmers in local venues
of decision-making such as their participation in the deliberation of ordinances and
resolutions by local legislative councils on matters related to the rice industry;

. Give the municipal or city chief executive timely and appropriate advise on matters
related to the rice industry:

f. Recommend local legislations for the betterment of the rice industry and its
stakeholders;

g. Monitor the rice supply in their municipality or city and, whenever it finds a critical
supply situation, to make the corresponding proper report to the Provincial Rice Supply
Security Council and the NFA;

h. Monitor possible hoarding activities of rice traders and to make the proper report to the
municipal or city mayor and the chief of the local Philippine National Police; and

i. Monitor the price movement of rice and make the corresponding proper report to the
National Rice Supply Security Council.

The municipavcity Local Rice Supply Security Councils shall meet at least once a month or as
often as necessary.

SECTION 91. Composition of the Local Rice Supply Security Councils. - The
municipaveity Local Rice Supply Security Council shall be composed of the following:

A representative of the rice farmers;

A representative of the irrigators association;

A representative of the marketing cooperatives;

A representative of the rice traders doing business in the municipality or city;
A representative of rural development civil society;

The Municipal Agriculture Officer; and

The Municipal Agrarian Reform officer.

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In municipalities and cities where there are no marketing cooperatives, their representation
slot shall be given to rice producers’ cooperative or farmers’ organizations. Likewise, in the
absence of any rural development civil society in the municipality or city, its representation slot
shall be given to civic societies or to the academic sector.


SECTION 92. Manner of constituting the Local Rice Food Security Council and electing
the Chairperson. — Within the thirty (30) days provided in Section 90 of this Act, the
Municipal Agricutture Officer shall call an assembly of all rice stakeholders in the
municipality or city. He shall ensure the attendance of all sectors from the ranks of which
the representation composition of the Local Food Security Council should come from as
provided in the preceding section. He shail also ensure the attendance of women in the
assembly. The assembly shall then elect their representatives to the Local Rice Supply
Security Council in accordance with the representation prescribed in the preceding
section.

The Municipal Agriculture Officer shall make a report of the results of the elections and submit
it to the chief executive of the municipality or city, copy furnish the provincial offices of the
National Food Authority and the Department.

The Local Rice Supply Security Council shall elect its Chairperson from among its members.

SECTION 93. LGUs responsibility to provide working facilities for the Local Rice
‘Supply Security Council. - The LGUs shall provide office space and make available their
facilities to the Local Rice Supply Security Councils to make them operational.

SECTION 94. Household Rice Security Index. - LGUs shall establish and maintain a
Household Rice Security Index which is the measurement of rice security of households
in each municipality or city. The Local Rice Supply Security Council shall be responsible
for the gathering of data for the Household Rice Security Index and for keeping and
publishing the index the expenses for which shall be shouldered by the concemed LGU.
The publication shall be made at the turn of every calendar year.

SECTION 95. Information contents of the Household Rice Security Index. - The
Household Rice Security Index shall have the following information:

Number of househokis;

number of members of each household segregated as to age and gender;
Rice consumption of each household segregated as to the sources;
Volume of rice supply from the NFA;

Volume of rice supply from private traders;

Point of origin of the rice supply from private traders;

Prevailing stall price of rice;

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SECTION 96. Provincial Rice Supply Security Councils. - Within forty-five (45) days after
the effectivity of this Act, the Provincial Director of the Department shail call to a meeting
all chairpersons of Local Rice Supply Security Councils of municipalities and cities of the
province and the Provincial Agrarian Reform Officer, Provincial Manager of the NFA, and
the Provincial Directors of the Department of Interior and Local Government, Department
of Social Welfare and Development, Department of Trade and Industry and the National
Economie Development Authority. They shall compose the Provincial Rice Supply Security
Council. They shall elect from among themselves a chairperson and such other officers
they deem necessary. The results of such election shall be submitted to the Provincial
Govemor of the concerned province.

The provincial LGUs shall give office space and make available its facilities to the Provincial
Rice Supply Security Counciis to make them operational. tt shall establish a communication
hotline for the primary use of the Provincial Rice Supply Security Council


The Provincial Rice Supply Security Councils shall meet as often as necessary but not less
than once every three months.

SECTION 97. Functions of the Provincial Rice Food Security Councils. - The Provincial
Rice Supply Security Council shail have the following functions:

‘a. consolidate at the provincial level the Household Rice Security Indexes from the
municipalities and cities;

b. Help the Local Rice Supply Security Councils review the land use and reclassification
ordinances of their municipalities and cities;

c. Help the Local Rice Supply Security Councils in making representations with their local
legislative councils for making good their recommendations on land use and
reclassification ordinances or resolutions as provided in Section 63 of this Act;

d. Recommend legisiations and make representations in the provincial legislative council
‘on matters related to the rice industry;

@. Give the Provincial Governor timely and appropriate advice on matters related to the
rice industry;

Help the Local Rice Supply Security Councils in making representation with the NFA
for redisposition of rice supply in times of critical rice supply situation;

g. Make representation with the Provincial Govemor and other concerned enforcement
agencies, including the Provincial Director of the PNP, for quick responses against
hoarding activities and overpricing of rice; and

h. When there is a local critical rice supply situation, immediately submit a report to the
National Rice Supply Security Council with its recommendation as to whether or not
there is a need to declare the existence of the rice crisis and conduct an investigation
covering the province.

CHAPTER XV
National Rice Supply Security Council

SECTION 98. The National Rice Supply Security Council. - There is hereby created a
‘National Rice Supply Security Council which shall be composed of the following:

Secretary of the Department;

Director-General of the National Economic Development Authority
Administrator of the National Food Authority;

Secretary of the Department of Justice;

‘Secretary of the Department of Interior and Local Govemment;
Secretary of the Department of Social Welfare and Development;
Secretary of the Department of Trade and Industry;

Director General of the Philippine Rice Research Institute;

A representative from the Provincial Rice Supply Security Councils;
A representative of the farmers sector (one each from Luzon, Visayas and Mindanao);
A representative of women sector;

A representative of rural development civil society;

A representative of the irrigators sector,

A representative of the consumers sector;

A representative of the rice vendors sector; and

A representative of the rice traders sector.

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The Executive Secretary of the Office of the President shall gather nominees from the
Provincial Rice Supply Security Councils and from the sectors mentioned in enumeration m.
tos. and appoint from among the nominees the representatives for the Provincial Rice Supply
Security Councils and for each sector.

Within three (3) months during which the appointment of representatives of the Provincial Rice
‘Supply Security Councils and the sectors shall have been completed, the Executive Secretary
shall convene the members of the National Rice Supply Security Council and preside its
inaugural meeting until it has elected a chairperson from among the sectoral representatives.

The National Rice Supply Security Council shall meet at least twice a year or as often as it
deems necessary. Its Chairperson shall have the power to call an emergency meeting during
critical situations of rice supply and price movements in the local market.

SECTION 99. Functions of the National Rice Supply Security Council. - The National
Rice Supply Security Council shall have the following powers and functions

a. Ensure that the policies and provisions of this Act on protecting the rice industry from
the harmful effects of rice importation are implemented;

b. Serve as the Advisory Council for the Office of the President on all matters that affect
the rice industry;

c. Declare the existence of a rice crisis after conducting an investigation in accordance
with Section 66 of this Act;

d. Recommend measures for addressing critical situations of the rice supply in the
domestic market;

e. Recommend to the NFA the importation of rice as a last resort after establishing and
certifying that local rice production cannot fil in the supply inadequacy;

f. Set the terms and conditions for the rice importation;

g. Impose price control measures during critical rice supply situations in accordance with
Section 66 of this Act;

h. Recommend legislations for the betterment of the rice industry and its stakeholders
and make representation with both Houses of Congress for the enactment of
recommended legislations;

i. Review the executive report of the Department on the Profiles of implementation of the
core programs of this Act in Rice Development Zones; and

j. Review the periodic report of the Department on the special beneficiaries;

SECTION 100. Office, Secretariat and Budget. - The Department shall provide the
National Rice Supply Security Council office space and equipment, facilities and vehicles
for its operation. It shall also form from among its personne! a staff complement that will
be detailed to the National Rice Supply Security Council to serve as its Secretariat and
perform core functions and services.

The National Rice Supply Security Council shall have an initial annual budget of no less than
Thirty Million Pesos (P30,000,000.00) after which it shall be levelled to no less than Twenty
Milton Pesos (P20,000,000.00) in the succeeding years: Provided, that it may be increased
upon request of the National Rice Supply Security Council but shall not be diminished by the
DBM or Congress.

SECTION 101. Remuneration for sectoral representatives. - The representatives from
the Provincial Rice Supply Security Council and of the sectors shall be entitled to a
remuneration for their attendance of the meetings of the National Rice Supply Security


Council. The amount of the remuneration shall be decided in the inaugural meeting of the
Nationa! Rice Supply Security Council; Provided, that the amount shall not exceed Ten
Thousand Pesos (P10,000.00) per attendance for each representative.

CHAPTER XVI
Appropriations
SECTION 102. Appropriation and Core Programs allocations. - The amount of One

Hundred Eighty-Five Billion (P185 B) is hereby appropriated to fund the Three-Year

Implementation Plan of this Act. Such amount shall be apportioned as follows:

a. Twenty-Five Billion (P25 B) for the RPSCF;

b. Forty-Five Billion Pesos (P45 B) for the Accelerated Irrigation Development Program
and Twenty Billion (P20 B) for the rehabilitation and repair of existing irrigations
systems;

¢. Thirty Billion (P30 B) for the Post-Harvest Facilities Development Program;

d. Fifty Billion (P50 B) for the Farm inputs Support Program to be released each year at
‘Sixteen Billion and Six Hundred Sixty-Six Million Pesos (P16.666 B);

e. Fifteen Billion (P15 B) for Research and Development and Extension Services
Program

Upon the completion of the Three-Year Implementation Plan, the National Govemment shall
appropriate at least Twenty-Seven Billion Pesos (P27 B) to be included in the annual
Government Appropriations Act for sustaining the core programs of this Act. Such amount
shall be apportioned as follows:

a. Ten Billion (P10 B) for the maintenance of constructed irrigation systems;

b. Ten Billion (P10 B) for the continuation of the Rice Production Socialized Credit
Program:

©. Five Billion (P5 B) for the continuation of the Production Support Program;
d. Two Billion (P2 B) for research development and extension services;

SECTION 103. Exemption from election ban. - The projects for the implementation of
the Accelerated Infrastructure Development Program of this Act shall be exempt from
election ban on public works.

CHAPTER XVII

Prohibited Acts


SECTION 104. Criminal Offenses. - The following acts, as defined in Chapter Il, Section
4 of this Act, shall be prohibited and be liable for punishment

a. Rice hoarding — There shall be prima facie evidence of hoarding when:

4. A person has stocks of rice which are not included in his inventory report to the
NFA as mandated in the second paragraph of Section 71 of this Act;

2. A person has documented stocks of rice which is ten percent (10%) higher than
his average level of increase in his inventory in the last six (6) months immediately
prior to the discovery of the questionable increase;

3. Aperson has stocks of rice which exceed the capacity of his warehouse or storage
facility by ten percent (10 %);

4. A person has maintained two or more dummy operators of warehouses which
enable him to contro! stocks of rice higher by more than five (5) percent of his
market share for the last three (3) months;

5. Apperson does not dispose, sell or distribute his stocks to the public for a period of
fifteen (15) days from the warehouse arrival of the stocks; or

6. Apperson takes out his stocks from distribution.

b. Profiteering - There shall be prima facie evidence of profiteering when

1. Aperson selis his rice stocks to the public at a price which is ten (10) percent higher
than the price during the immediately preceding month;

2. Aperson sells his rice stocks during the period of rice crisis the existence of which
has been declared by the National Rice Supply Security Council at a price that
does not conform with the price freeze, status quo ante price, or price ceiling order
of the National Rice Supply Security Council,

3. Apperson buys rice from the NFA at a lower price per kilo and sells it to the public
at a price per kilo which is ten (10) percent higher than the NFA price;

4. Aperson sells rice which is a mixture of commercial and NFA rice or a mixture of
lower grade variety and higher grade variety; or

5. Aperson misrepresents his rice stocks as to variety, weight and measurement.

. Engaging in rice carte! operations — There shall be prima facie evidence of engaging
in rice cartel operations when

1. Two (2) or more persons or business enterprises dealing in rice and competing for
the same rice market perform uniform or complementary acts among themselves
which tend to bring about artificial shortage of rice supply in order to increase the
price; or

2. They simultaneously increase prices on their rice thereby lessening the competition
among themselves;

d. Rice smuggling - Rice smuggling, regardless of volume or value, is hereby declared
as an act of sabotage against the national rice industry, our rice farmers and the
people.

Rice smuggling is committed and the commission is prima facie evidence when:

1. A person buys or procures rice from any source outside of the country and brings
the rice into the country;


2. Aperson transports or stores or sells inside the country the rice bought or procured
from outside the country,

3. A government official issues any document to a private person or entity to give
cover of legality to the act of bringing into the country the rice bought or procured
from outside the country; or

4. Aperson acts as broker or intermediary for the importer in disposing the imported
rice;

CHAPTER XVII
Punishment and Penal Provisions

SECTION 108. For the issuance of an invalid writ execution that violates the security
of tenure of a rice farmer. — For any judge who issued a writ of execution against a rice
farmer in violation of the provision of Section 81 of this Act, the punishment shall be
suspension without pay of not less than six (6) months to two (2) years and a fine of One
Hundred Fifty Thousand Pesos (P150,000.00). For any judge who commits the same
violation a second time, the punishment shall be dismissal from service, perpetual
disqualification from the judicial service, and a fine of Two Hundred Thousand Pesos
(P200,000.00).

For any govemment official, including members of the Philippine National Police and the
‘Armed Forces of the Philippines, who acts upon an invalid writ of execution resulting in the
illegal ejectment or ousting of a rice farmer, the punishment shall be dismissal from service,
Perpetual disqualification from government service and a fine of One Hundred Thousand
Pesos (P100,000.00).

SECTION 106. For ejecting a rice farmer without a valid writ of execution or using an
invalid warrant. - For any person who orders or organizes a demolition activity against a
rice farmer in violation of Section 82 of this Act, if the illegal eject ment is attended with
excessive force and violence, the penalty shall be an imprisonment of not less than six (6)
years but not more than eight (8) years and the payment of moral and exemplary damages
for the moral injury of the rice farmer and actual damages for his destroyed properties.

In all other cases, the penalty shall be an imprisonment of not less than four (4) years but not
more than six (6) years and the payment of moral and exemplary damages for the moral injury
of the rice farmer.

SECTION 107. For land-use conversion and destruction of rice lands. - For any
person who violates Section 60 or commits any of the acts enumerated in Section 61 of
this Act, the penalty shall be as follows:

a. Ifthe conversion or destruction of rice lands is eighty-five (85) to one hundred percent
(100%), the penalty shall be an imprisonment of not less than twelve (12) years but
ot more than fifteen (15) years and a reparation fine equivalent to the total expenses
necessary to restore the converted or destroyed land to its rice production use;

b. If the conversion or destruction is sixty-five (65) to eighty-four percent (84%), the
penatty shall be an imprisonment of not fess than six (6) years but not more than eight


(8) years and a reparation fine equivalent to the expenses necessary to restore the
converted or destroyed portion to its rice production use:

c. If the conversion or destruction is fifty (50) to sixty-four percent (64 %), the penalty
shall be an imprisonment of not less than four (4) but not more than six (6) years and
a reparation fine equivalent to the expenses necessary to restore the converted or
destroyed portion to its rice production use; and

d. If the conversion or destruction is below fifty percent (50 %), the penalty shall be an
imprisonment of not less than two (2) years but not more than four (4) years and a
reparation fine equivalent to the expenses necessary to restore the converted or
destroyed portion to its rice production use;

The reparation fine in each case shall be determined by an independent assessment
commission to be appointed by the court

SECTION 108. For crop conversion of rice lands. — Any person who violates Section 62
of this Act shall be meted the fine equivalent to twice the gross value of the rice that was
lost to crop conversion. The gross value shall be based on the average gross harvest for
the last two cropping.

Any person who induces a rice farmer to convert his rice farm to other crops shall be meted
the fine equivalent to the gross value of the rice that was lost to crop conversion.

SECTION 109. For hoarding, profiteering and engaging in cartel operation. - For any
person who commits any of the acts in enumeration a., b. and c. of Section 104 of this Act,
the penaity shall be not less than eight (8) years but not more than twelve (12) years, a
fine of not less than Five Hundred Thousand Pesos (P500,000.00) but not more than Five
Million Pesos (P5,000,000.00) and the cancellation of his business permit

SECTION 110. For rice smuggling. - For any person who commits any of the acts in
‘enumeration d. of Section 104 of this Act, when the minimum value is less than Ten Million
Pesos (P10,000,000.00), the penaity shail be not less than twelve (12) years but not more
than seventeen (17) years, a fine of twice the value of the smuggled rice and the aggregate
amount of the taxes, duties and other charges avoided and the cancellation of his business
permit.

If the rice smuggled has a minimum value of Ten Million Pesos (P10,000,000.00), as
determined by the Bureau of Customs (BOC), the act shall be deat with in accordance with
the penal provisions of Republic Act 10845 or The Anti-Agricultural Smuggling Act of 2016.

In all cases, in accordance with Section 2530 of the Tariffs and Customs Code, the smuggled
rice and the property used in smuggling shall be confiscated and, without prejudice to Section
2531 of the same Code, shall be forfeited in favor of the Government. The Bureau of Customs
shall tum over the confiscated rice to the NFA to form part of its buffer stock.

SECTION 111. Criminal liability of officers of juridical persons. — When the violator of
any of the prohibited acts is a juridical person, the criminal liability shall attach to its
president, chief operating officer or manager who consents, tolerates or fails to take action
to prevent the commission of the violation.


SECTION 112. Criminal liability of public officials. — Any public official or employee who,
by reason of his office, with or without consideration, conspires in the commission of the
prohibited acts or knowingly conceals the violation, shall likewise be held principally liable
for the violation and shail suffer the additional penalty of permanent disqualification to hold
Public office.

CHAPTER XIX
Congressional Oversight Committee

SECTION 113. Congressional Oversight Committee. - A Congressional Oversight
Committee is hereby created to oversee and monitor the implementation of this Act. It shall
be composed of the Chairpersons and Vice-chairpersons of the Committees on Agricutture
and Food, Agrarian Reform, and Poverty Alleviation of the House of Representatives and
Chairpersons and Vice-chairpersons of the Committees on Agricutture and Food, Agrarian
Reform and Economic Affairs of the Senate.

The Chairperson of the Congressional Oversight Committee shall be rotated among the
chairpersons of the member-committees.

The Congressional Oversight Committee shall meet twice a year.

CHAPTER XX
Terminal Review of Implementation

SECTION 114. Sunset review. — On the third year of the implementation period, the
Congressional Oversight Committee shall conduct a total review of the implementation of
this Act per its component programs, especially its Focused-Poverty Alleviation Program.
If it finds compelling and reasonable grounds to extend the entire program or any of its
components, the extension shall be limited to one year, Provided, that the extension for
the Focused-Poverty Alleviation Program shail be until the special beneficiaries have
successfully transitioned to crossing over the rural poverty threshold one hundred percent
(100 %),

CHAPTER XXI
Miscellaneous Provisions
SECTION 115. Implementing Rules and Regulations. - The Department shall issue the

Implementing Rules and Regulations of this Act within forty-five (45) days after its
effectivity.

SECTION 116. Repealing clause. - All laws, decrees, executive orders, rules and
regulations and other issuances not consistent with this Act are hereby repealed or
amended as to inconsistent parts.

SECTION 117.  Separability clause. - if any provision or part of this Act is declared void,
the remaining parts shall remain in force and effect.


SECTION 118. _ Effectivity clause. - This Act shall take effect immediately after fifleen (15)
days from its publication in the Official Gazette.

Approved.