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

Seventeenth Congress
Second Regular Session

7369

House Bill No.

Introduced by Honorable Cesar V. Sarmiento

EXPLANATORY NOTE

This bill declares the province of Catanduanes as the Abaca Capital of the
Philippines with the corresponding government support and budget allocation.

Section 1, Article XII of the 1987 Constitution of the Philippines provides that the
State shall promote industrialization and full employment based on sound agricultural
development and agrarian reform, through industries that make full and efficient use of
human and natural resources, and which are competitive in both domestic and foreign
markets. Pursuant to such pronouncement, the State recognizes that one of the means
by which socio-economic advancement can be attained is through agricultural
development.

According to the Philippine Fiber Industry Development Authority (PhilFIDA), the
Philippines has produced a total of 496,069.10 bales (1 bale = 125 kilograms) of abaca
in 2016. Additionally, in the first quarter of 2017, the country has already produced
130,090.30 bales of abaca.' Statistics from the Department of Agriculture (DA) show
that from 2009-2013 the Bicol Region is the top producer of abaca fiber having
produced 22,987 metric tons which comprise 39% of the national produce.”

Furthermore, the province of Catanduanes produces roughly 92.3% of the total
abaca production of the Bicol Region and comprises 34.9% of the total abaca
production of the country.° Reportedly, Catanduanes has a total of over 35,500 hectares
of abaca land and 15,454 Catandunganon farmers use this for their livelihood. Thus,
Catanduanes has earned the title “abaca county” for being the biggest abaca-producing
province in the Philippines.

Not only that, Catanduanes can also be considered as the top abaca producer in
the world, providing 87.17% of global output. By itself, Catanduanes produces 23,540
metric tonnes of abaca. Our small island province even beats Ecuador which only ranks
second in abaca production with a total produce of 8,555 metric tonnes. Our abaca
exports are also worth $114.79 million which is bought by countries such as the United
States, United Kingdom, and Germany.*

Despite being the top producer in the Philippines and of the world and despite
the global demand, very little support is given by the national government to the abaca
industry as a whole, much less to the abaca industry in Catanduanes. For years, the DA
and PhilFIDA have not realized the global potential of abaca and have not prioritized the
development of the local abaca industry.

* Philippine Fiber Industry Development Authority. Fiber Statistics 2016 and 2017.
“Department of Agriculture Region V. Philippine Rural Development Program (PROP) at 14.
>

Id. at 15.
“ PhilFIDA, 2015 figures


What is worse, we do not only fail to promote the said industry but we also have
no mechanisms in place for its protection. In December 2016, abaca plantations in
Catanduanes were heavily devastated by Typhoon Nina. The total damage has
amounted to PhP 206.4 million. The abaca rehabilitation fund, which amounted to a
meager Php 5 million, only came more than a year later in spite of the earnest appeals
for immediate government support.

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

Ser O

CESAR V. SARMIENTO


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

Seventeenth Congress
Second Regular Session

House Bill No._@369

Introduced by Honorable Cesar V. Sarmiento

AN ACT DECLARING THE PROVINCE OF CATANDUANES AS THE ABACA
CAPITAL OF THE PHILIPPINES AND FOR OTHER PURPOSES

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

SECTION 1. SHORT TITLE. - This Act shall be known as “Catanduanes as
Abaca Capital Act.”

SECTION 2. DECLARATION OF POLICIES. - It is hereby declared the policy of
the State to promote and support the abaca industry in the country, especially in the
Province of Catanduanes. As the country's highest producer of abaca fiber, utmost
priority shall be given to increase the quantity, develop the quality and sustain the
production of abaca fiber in Catanduanes in order to adequately meet local and global
market demands.

In addition, measures must be taken to safeguard the country’s abaca industry
from external factors brought about by typhoons, earthquakes, pests and various crop
diseases, and other calamities.

SECTION 3. ABACA CAPITAL OF THE PHILIPPINES. — Pursuant to the
abovementioned public policy, the Province of Catanduanes is hereby declared or
granted the official designation as the Abaca Capital of the Philippines.

SECTION 4. CREATION OF AN ABACA RESEARCH AND DEVELOPMENT
CENTER. - Within a year from the approval of this Act, there shall be created an Abaca
Research and Development Center in Catanduanes which shall be attached to the
Catanduanes State University-College of Agriculture and Fisheries.

SECTION 5.FUNCTIONS OF THE ABACA RESEARCH AND DEVELOPMENT
CENTER. — The Abaca Research and Development Center shall perform the following
functions:

a. Undertake and conduct researches and technical studies on the development,
production, management, and marketing of abaca fiber;

b. Provide technical assistance and support to abaca farmers and other
stakeholders nationwide;

c. Develop appropriate technologies beneficial to the abaca industry;

d. Train faculty members and other research personnel who will undertake research
and development work on abaca;


e. Publish research studies, papers, articles, and other works or writings relating to
abaca R&D on a regular basis with the end goal of benefitting abaca farmers and
other stakeholders nationwide;

f. Coordinate with the Department of Agriculture, the Philippine Fiber Industry
Development Authority, the Provincial Government of Catanduanes, and with the
National Abaca Research Center to consolidate all policies, programs, and
projects on abaca research and development.

SECTION 6. IMPLEMENTING RULES AND REGULATIONS. - The Department
of Agriculture and the Philippine Fiber Industry Development Authority, in collaboration
with the Catanduanes State University, shall issue and promulgate the necessary rules
and regulations to accordingly implement the said Act.

SECTION 7. APPROPRIATIONS. - For the effective implementation of this Act,
the amount of One Hundred Million Pesos (PhP 100,000,000.00) is hereby appropriated
from the unappropriated funds of the National Treasury. Thereafter, such sums as may
be necessary for its continued implementation shall be included in the General
Appropriations Fund.

The amount to be appropriated shall be used primarily to increase the quantity of
abaca plants through planting of more seedlings or increasing hectarage; to develop
abaca fiber quality through the use of technological innovations; to market abaca fiber
and products derived from it; and to support the operation of the Abaca Research and
Development Center in Catanduanes.

SECTION 8. ESTABLISHMENT OF ABACA CALAMITY FUND. —
Notwithstanding and without suspending other fund sources for rehabilitation of abaca
farms, an Abaca Calamity Fund shall be established and shall serve as a special fund
for the purpose of rehabilitation of future damages to the abaca industry in the Province
of Catanduanes caused by typhoons, pests and other calamities.

This fund shall comprise 10% of the total initial appropriation for the
implementation of this Act. Thereafter, 10% of the succeeding annual appropriations for
the implementation of this Act shall be reserved as Abaca Calamity Fund.

SECTION 9. SEPARABILITY CLAUSE. - If any provision of this Act shall be
unconstitutional, any other provision not otherwise affected shall remain in full force and
effect.

SECTION 10. REPEALING CLAUSE. — All laws, decrees, ordinances, rules, and
regulations, executive or administrative orders, and other presidential issuances
inconsistent with this Act are hereby repealed, amended, or modified accordingly.

SECTION 11. EFFECTIVITY. — This Act shall take effect fifteen (15) days after
publication in at least two (2) newspapers of general publication.

Approved,