Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City IS \
TE DATE 14 AUG 2025 Gy
+ TIME H a
Twentieth Congress \e BY =n fey
First Regular Session Ks aS
<p Y
HOUSE BILL NO. _3732

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
STRENGTHENING FOOD SECURITY BY AUTHORIZING THE USE OF LOCAL
GOVERNMENT UNITS’ QUICK RESPONSE FUNDS AND CALAMITY FUNDS,
AND NATIONAL GOVERNMENT DISASTER-RELATED FUNDS, FOR THE
PURCHASE AND REDISTRIBUTION OF AGRICULTURAL COMMODITY
SURPLUSES TO PREVENT PRICE DEPRESSION, AMENDING FOR THE
PURPOSE SECTIONS 21 AND 22 OF REPUBLIC ACT NO. 10121, OTHERWISE
KNOWN AS THE “PHILIPPINE DISASTER RISK REDUCTION AND
MANAGEMENT ACT OF 2010,” AND FOR OTHER PURPOSES

EXPLANATORY NOTE

The State recognizes the paramount importance of food security as both a right of the
people and a foundation of national stability. Article Il, Section 15 of the 1987 Constitution
declares that the State shall protect and promote the right to health of the people and instill
health consciousness among them, while Article XIII, Section 11 mandates that the State shall
make essential goods available to all at affordable costs. The Intemational Covenant on
Economic, Social and Cultural Rights, to which the Philippines is a party, further affirms the
fundamental right of everyone to be free from hunger.

In agricultural economies such as ours, food security is inseparable from farmgate price
stability. When the market faces periods of surplus production, farmgate prices often fall
precipitously, inflicting economic distress upon farmers and fisherfolk. The lack of timely and
adequate government intervention in such situations leads not only to wasted harvests but also
to reduced future production as farmers are discouraged from planting again, thereby
jeopardizing long-term food supply.

The experience of recent years underscores this vulnerability. Onion farmers in late

2022 were compelled to sell at distressed prices due to oversupply, only for the market to swing
into shortage months later. Tomato growers in 2023 reported dumping harvests as low farmgate

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prices could not cover even the cost of transport. Rice farmers have faced similar challenges in
peak harvest months, when absence of sufficient procurement capacity depressed local prices.

At present, Republic Act No. 10121, or the “Philippine Disaster Risk Reduction and
Management Act of 2010,” allows Local Government Units (LGUs) and the National
Government to use their disaster-related funds for response and recovery. However, these funds
are not expressly authorized for proactive, market-stabilizing interventions during periods of
agricultural surplus, even when such interventions would prevent economic dislocation and
safeguard food security.

This bill amends Sections 21 and 22 of Republic Act No. 10121 to expressly authorize
the use of Quick Response Funds (QRF) and calamity-related allocations — both at the local
and national levels - for the purchase of agricultural commodity surpluses during periods of
oversupply. These surpluses may be stored, processed, or distributed for buffer stocking, relief
operations, supplementary feeding, support to food banks, people’s organizations, and other
not-for-profit entities, for charitable purposes, or sold at cost to private sector entities willing
to distribute them without profiteering.

By enabling LGUs and national agencies to purchase surplus commodities at fair and
remunerative farmgate prices, the bill secks to:

1. Protect farmers and fisherfolk from ruinous price collapses during surplus periods.

2. Reduce post-harvest losses and food wastage by redirecting edible surpluses to
communities in need.

3. Build up government-managed buffer stocks to cushion the impact of future
shortages or emergencies.

4, Expand the capacity of food banks, feeding programs, and charitable distribution
channels.

5. Leverage existing disaster-related funding mechanisms for preventive economic
and food security measures, rather than waiting for crises to fully unfold.

The proposed measure is consistent with the mandate of Republic Act No. 10121 to
integrate risk reduction into development planning. Economic dislocation in the agriculture
sector is itself a form of disaster for rural communities. Preventing it is as vital as responding

to typhoons or floods.

In view of the foregoing, the immediate passage of this measure is earnestly sought.

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Twentieth Congress
First Regular Session

HOUSE BILL NO. 3732 _

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
STRENGTHENING FOOD SECURITY BY AUTHORIZING THE USE OF LOCAL
GOVERNMENT UNITS’ QUICK RESPONSE FUNDS AND CALAMITY FUNDS,
AND NATIONAL GOVERNMENT DISASTER-RELATED FUNDS, FOR THE
PURCHASE AND REDISTRIBUTION OF AGRICULTURAL COMMODITY
SURPLUSES TO PREVENT PRICE DEPRESSION, AMENDING FOR THE
PURPOSE SECTIONS 21 AND 22 OF REPUBLIC ACT NO. 10121, OTHERWISE
KNOWN AS THE “PHILIPPINE DISASTER RISK REDUCTION AND
MANAGEMENT ACT OF 2010,” AND FOR OTHER PURPOSES

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

SECTION 1. Section 21 of Republic Act No. 10121 is hereby amended to read as
follows:

SEC. 21. Local Disaster Risk Reduction and Management Fund
(LDRRMF). ~ Not less than five percent (5%) of the estimated revenue from
regular sources shall be set aside as the LDRRMF to support disaster risk
reduction and management activities such as, but not limited to, pre-disaster
preparedness programs including training, purchase of life-saving rescue
equipment, supplies and medicines, for post-disaster activities, and for the
operations of Local Disaster Risk Reduction and Management Offices.

The LDRRMF shall be used to fund activities formulated in the Local
Disaster Risk Reduction and Management Plan as provided in this Act. Any
unexpended LDRRMF shall accrue to a special trust fund which shall be used
solely for disaster risk reduction and management activities within the next
three (3) years. Thereafter, any balance shall revert to the general fund subject
to the auditing rules and regulations of the Commission on Audit.

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Not less than thirty percent (30%) of the LDRRMF shall be allocated
as a Quick Response Fund (QRF) which shall serve as a standby fund for relief,
response, and early recovery programs.

FOR PURPOSES OF MITIGATION, PREVENTION, AND
FOOD SECURITY, THE LDRRMF, INCLUDING ITS QRF PORTION,
MAY BE USED FOR THE PURCHASE OF AGRICULTURAL
COMMODITY SURPLUSES DURING PERIODS OF SURPLUS
PRODUCTION, UPON DETERMINATION BY THE DEPARTMENT
OF AGRICULTURE AND THE CONCERNED LOCAL
GOVERNMENT UNIT THAT SUCH SURPLUS THREATENS TO
DEPRESS FARMGATE PRICES TO ECONOMICALLY
UNSUSTAINABLE LEVELS.

PURCHASES UNDER THIS SECTION SHALL BE AT
FARMGATE PRICES NOT LOWER THAN THE AVERAGE
PRODUCTION COST PLUS A REASONABLE MARGIN AS
DETERMINED BY THE DEPARTMENT OF AGRICULTURE IN
CONSULTATION WITH FARMER AND _ FISHERFOLK
ORGANIZATIONS AND COOPERATIVES, AND SHALL, AS FAR AS
PRACTICABLE, BE PROCURED DIRECTLY FROM PRIMARY
PRODUCERS OR THEIR COOPERATIVES.

AGRICULTURAL COMMODITIES PURCHASED PURSUANT
HERETO MAY BE STORED, PROCESSED, OR DISTRIBUTED FOR
BUFFER STOCKING; RELIEF DISTRIBUTION; SUPPLEMENTARY
FEEDING INCLUDING IN SCHOOLS AND CHILD DEVELOPMENT
CENTERS; SUPPORT TO FOOD’ BANKS, PEOPLE’S
ORGANIZATIONS, AND OTHER INTERESTED PARTIES
OPERATING ON A NOT-FOR-PROFIT BASIS; FOR CHARITABLE
PURPOSES; OR SOLD AT COST TO PRIVATE SECTOR ENTITIES
FOR FURTHER PROCESSING, RESALE, OR DISTRIBUTION,
PROVIDED THAT SUCH AT-COST SALES SHALL NOT RESULT IN
RESALE AT EXCESSIVE PROFIT AND SHALL BE SUBJECT TO
GUIDELINES TO BE ISSUED UNDER THIS ACT.

SEC. 2. Section 22 of Republic Act No. 10121 is hereby amended to read as follows:

SEC. 22. National Disaster Risk Reduction and Management Fund
(NDRRMF). ~ The NDRRMF shall be used to support disaster risk reduction,
preparedness, response, recovery, and reconstruction activities, including
support to agencies with Quick Response Funds.

THE NATIONAL GOVERNMENT, THROUGH THE
DEPARTMENT OF AGRICULTURE, THE DEPARTMENT OF
SOCIAL WELFARE AND DEVELOPMENT, THE NATIONAL FOOD
AUTHORITY, AND OTHER RELEVANT AGENCIES, MAY USE THE

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NDRRMF OR THEIR RESPECTIVE QUICK RESPONSE FUNDS OR
DISASTER-RELATED ALLOCATIONS FOR THE PURCHASE OF
AGRICULTURAL COMMODITY SURPLUSES DURING PERIODS OF
SURPLUS PRODUCTION, UNDER THE SAME CONDITIONS AND
SAFEGUARDS PROVIDED IN SECTION 21 HEREOF.

COMMODITIES PURCHASED UNDER THIS SECTION MAY
BE UTILIZED FOR BUFFER STOCKING, — RELIEF,
SUPPLEMENTARY FEEDING, SUPPORT TO FOOD BANKS,
PEOPLE’S ORGANIZATIONS, AND OTHER NOT-FOR-PROFIT
PURPOSES, OR SOLD AT COST TO PRIVATE SECTOR ENTITIES
CONSISTENT WITH GUIDELINES TO BE ISSUED UNDER THIS
ACT.

SEC. 3. Implementing Rules and Regulations. ~ Within sixty (60) days from the

SEC. 4, Separability Clause. —If any portion or provision of this Act is declared

or unconstitutional, other provisions hereof shall remain in full force and effect.

effectivity of this Act, the Department of Agriculture, the National Disaster Risk Reduction
and Management Council, the Department of the Interior and Local Government, the
Department of Budget and Management, and the Commission on Audit shall
promulgate the rules to implement the provisions of this Act.

jointly

invalid

SEC. 5. Repealing Clause. — All laws, rules, and regulations inconsistent with this Act

are repealed or modified accordingly.

SEC. 6. Effectivity. — This Act shall take effect fifteen (15) days after its publication in

the Official Gazette or in a newspaper of general circulation.

Approved,

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