THIRTEENTH CONGRESS OF THE mwmrc 
OF THE PHILIPPINES 
FIRST REGULAR SESSION 
Introduced by Senator Magsaysay, Jr. 
EXPLANATORY NOTE 
Rice is life. 
For the Filipinos, rice is not simply the staple food, but is the 
very lynchpin of the country’s agricultural development. 
Thus, when it was stated by 
President Gloria Macapagal- Arroyo sometime ago that, 
“farmyr organizations shall be 
accorded the privilege to import rice 
to end the monopoly of the National Food 
Authority” , the message cuts across. 
The farmers are given the assurance of their 
role as premier active partners of national progress. 
The farming sector has always been at the receiving end of any rice importation as 
this tend to dampen or lower the price of palq resulting in no or lower income for our 
farmers. 
It is therefore an opportunity to let importation be an advantage or an 
opportunity for them to e m  additional income. 
This bill seeks to institutionalize the pronouncement of the present leadership to 
end the monopoly of the National Food Authority to import rice for the country. 
This 
bill seeks to give the privilege to import rice to farmer’s organization only as they are the 
most affected by such bringing in of rice fiom other countries and that the procurement 
knds of the National Food Authority be utilized only to purchase locally produced palay 
or farmer imports for food security requirements of the country. 
This bill likewise mandates NFA to use its hnds to procure locally- produced 
palay from our farming community to hrther motivate fanners to increase their 
productivity. A regay-market for their produce is a critical key factor in increasing 
productivity in the farms. 
Early enactment of this policy measure is earnestly sought. 


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THIRTEENTN CONGRESS OF THE REPUBLIC 
OF THEPHILIPPINES 
FIRST REGULAR SESSION 
SENATE 
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S.B. No. 
118 
AN ACT 
AUTHORIZING FARMER ORGANIZATIONS TO UNDERTAKE RICE 
IMPORTATIONS, 
PROMDING FUND ASSISTANCE AND FOR OTHER 
PURPOSES 
Be it enacted by Senate and the House of Representative of the Philippines. in 
Congress Assembled: 
SECTION 1. Declaration of Policy - 
It is hereby declared the policy of the 
State: 
1.1. The State recognizes the need for our country to attain food security. To this 
end as long as we are still under quantitative restrictions, it shall authorize farmer 
organizations to be the sole importer of rice in the country and at the same time authorize 
the National Food Authority to use its fhds to purchase locally produced palay only. 
1.2. The State recognizes the need for farmers organizations to gain training and 
expertise in international trade in anticipation of the lifting of restrictions on importation 
of agricultural products under the World Trade Organization-General Agreement on 
Tariffs and Trade. 
1.3. The State believes that the funds of the National Food Authority (NFA) shall 
be used for our own farmers especially those that need NFA service the most e.g. upland 
farmers, areas of less trades, areas with less post harvest facilities, etc. provide significant 
impact to local farmers. 
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f%C. 2. Administration - The National government through the National Food 
Authority or an agency designated by the President of the Philippines shall: 
2.1. 
determine the volume to be imported and for this purpose, 1 issue the 
implementing rules and conditions for the rice importation; 
give authority to import rice and transfer such authority to authorized 
farmer organizations only. 
2.2. 
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2.3. 
2.4. 
2.5. 
fund allocated by NFA for its rice procurement shall be utilized in the 
purchase of locally produced palay and imported rice for the maintenance 
of its rice reserve requirements. 
determine the rice quality to be imported in consultation with importing 
farmers organization based on market requirements. 
keep an inventory of rice and grain supplies for 90 days. 
SEC. 3. Determination of Authorized of Farmer Organizations - Farmer 
Organizations shall be accredited and certified by the National Food Authority and the 
Cooperative Development 
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Authority based on a guideline tu be issued for this purpose. 
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The NFA will play a catalytic and supportive role recognizing the autonomy and 
independence of the internal affairs of the farmers organization. 
For this purpose, farmer organizations shall refer to associations whose majority 
owners are palay farmers. 
SEC. 4. Monitoring - The Department of Agriculture shall oversee the 
national palay and rice situation to determine the amount. of rice importation. 
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SEC. 5. Implementing Rules and Regulations - The NFA in consultation with 
concerned sectors shall issue the implementing rules and regulations within thirty (30) 
days from the effectivity of this Act. 
SEC. 6. Effectivity Clause - This Act shall take effect after fifteen (15) days 
after it's complete publication in at least (2) publications of general circulation. 
Approved,