Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

4005

HOUSE BILL NO.

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT

ESTABLISHING THE ITARAN MULTIGRAIN CENTER IN THE MUNICIPALITY
OF POLANGUI, PROVINCE OF ALBAY, AND APPROPRIATING FUNDS
THEREFOR

EXPLANATORY NOTE

The agriculture sector continues to suffer from post-harvest losses, poor farm-gate
prices, and lack of access to modern processing and storage facilities. These inefficiencies cut
into farmer incomes and weaken food security.

To address these constraints, the Department of Agriculture ~ Regional Field Office V
approved the establishment of a P250 million Multi-Grain Facility and Storage in Barangay
Itaran, Polangui, Albay. The feasibility study demonstrates that the project is technically,
financially, and economically viable, with a Financial Internal Rate of Return (FIRR) of 27.6
percent, a Benefit-Cost Ratio (BCR) of 2.69, and a positive Net Present Value (NPV) of P487
million.

The Center will directly benefit 5,000 hectares of corn and rice farms in the 3rd
District of Albay, providing drying, milling, storage, and marketing services. Its storage and
processing capacity will help guarantee higher buying prices (at least P1.50 per kilogram more
than traditional traders) and ensure a steady market for farmers.

The project also introduces modern mechanization, reinforced infrastructure against
typhoons, and climate-resilient post-harvest technologies. It will serve as a Common Service
Facility (CSF) managed by the Department of Agriculture in partnership with farmer
cooperatives, with oversight by an inter-agency committee including Bicol University, the
Agricultural Training Institute, and the Local Government Unit of Polangui.

Institutionalizing this facility through legislation ensures sustainable national
government funding, long-term protection of the investment, and a clear governance
framework for farmer cooperatives to maximize its benefits.


The passage of this measure will mark a major step in making Polangui, and the 3rd
District of Albay, a regional hub for grain processing, storage, and value-adding—a vital
backbone of food security and rural development in the Bicol Region.

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



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

‘Twentieth Congress
First Regular Session

4005

HOUSE BILL NO.

Introduced by Representative RAYMOND ADRIAN SALCEDA

AN ACT
ESTABLISHING THE ITARAN MULTIGRAIN CENTER IN THE MUNICIPALITY
OF POLANGUI, PROVINCE OF ALBAY, AND APPROPRIATING FUNDS
THEREFOR

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

SECTION 1. Short Title. This Act shall be known as the Jtaran Multigrain Center Act.

SEC. 2. Declaration of Policy. It is the policy of the State to ensure food security,
reduce post-harvest losses, and promote higher farmer incomes by providing moder, efficient,
and climate-resilient agro-industrial facilities. Toward this end, the State shall establish
multigrain processing and storage centers that serve as common service facilities for farmer
cooperatives and associations.

SEC. 3. Establishment of the Itaran Multigrain Center. There is hereby established a
Multigrain Facility and Storage Center in Barangay Itaran, Municipality of Polangui, Province
of Albay, to serve as a centralized hub for drying, milling, storage, and processing of rice, corn,
and other grains.

SEC. 4. Lead Implementing Agency. The Department of Agriculture (DA), through the
Philippine Center for Postharvest Development and Mechanization (PhilMech), in
coordination with the Local Government Unit of Polangui and accredited farmer cooperatives
and associations, shall oversee the management, operations, and development of the Center.

SEC. 5. Functions. The Center shall:

(a) Provide moder drying, milling, and storage services for rice, corn, and other grains;

(b) Serve as a consolidation hub to guarantee higher farm-gate prices and steady supply
for institutional buyers;

(c) Reduce post-harvest losses and improve grain quality;


(a) Offer processing, packaging, and value-adding services for corn-based feed, rice
by-products, and other agro-industrial products; and
(©) Serve as a demonstration site for advanced mechanization and post-harvest technologies.

SEC. 6. Appropriations. The amount of P250,000,000.00 necessary for the initial
implementation of this Act shall be charged against the funds of the Department of Agriculture.
Thereafter, such sums as may be needed for its continued operation and maintenance shall be
included in the annual General Appropriations Act.

SEC. 7. Implementing Rules and Regulations. Within ninety (90) days from the
effectivity of this Act, the Department of Agriculture shall, in coordination with the Local
Government Unit of Polangui, the Provincial Government of Albay, and concemed
stakeholders, promulgate the rules and regulations to implement this Act.

SEC. 8. Separability Clause. If any provision of this Act is declared unconstitutional or
invalid, the remaining provisions not affected shall remain in full force and effect.

SEC. 9. Repealing Clause. All laws, decrees, executive orders, and regulations
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 10. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in a newspaper of general circulation.

Approved,