NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S. No. 1870
Senate
of thr n P(f,ro
23 FEB 13 P4 23
received BV:
Introduced by: Senator Loren Legarda
AN ACT
STRENGTHENING AND REVITALIZING THE DEVELOPMENT OF THE SALT 
INDUSTRY IN THE PHILIPPINES, APPROPRIATING FUNDS THEREFOR, 
AMENDING REPUBLIC ACT NO. 8550, OTHERWISE KNOWN AS "THE 
PHILIPPINE FISHERIES CODE OF 1998," AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Philippines ranks fifth among countries with the longest coastline and first 
in the highest coastline-to-land area ratio, a geographic feature that makes it prime 
for salt production. The country is endowed with rich and fine salt beds, thus, making 
the country self-sufficient at the height of salt production in the 1980s.
In 1994, the Philippines ratified the General Agreement on Tariffs and Trade 
(GATT) which was believed to have led to the flooding of cheap salt import (industrial 
grade) into our market. The price of locally produced salt could not compete with the 
price of imported salt. Despite the huge potential of the industry, it dwindled to the 
brink of extinction.
In 1995, Republic Act No. 8172, or the ASIN Law was passed which requires 
salt iodization to curb iodine deficiency disorders in the country. However, salt 
iodization requires the use of more sophisticated and costly machinery and 
technology making the industry generally limited to large-scale salt traders, 
marginalizing the small and medium salt farmers who cannot afford the 
corresponding costs. Due to a lack of training, funds, resources, and government 
support for the small producers, the eventual death of the salt industry became 
inevitable.


At present, the Philippine Chamber of Agriculture and Food Inc. reports that 
the Philippines imports up to 550,000 metric tons of salt, which constitutes 93% of the 
country's annual salt requirement. The Philippine Association of Salt Industry 
Networks (PhilAsin) said the number is expected to increase in the coming years due 
to the rapidly growing population.
The decline of the industry is also attributed to urbanization or the conversion 
of salt farms into residential and industrial areas; high repair and maintenance costs 
for salt farm development and exorbitant land rental fees which limit the capacity of 
salt producers to invest in product quality/productivity-enhancing methods and 
technologies; climate change as salt production in the Philippines is highly dependent 
on weather conditions; limited government support services and policies supporting 
the local salt industry as there is no law or policy that protects and charts the direction 
of the local salt industry; prevailing gaps such as the limited data about the Philippine 
salt industry, lack of standard design and process for salt production, and limited 
research and development studies for salt production.
This bill seeks to revitalize the salt industry of the Philippines and address the 
identified challenges and gaps with the end view of making the Philippine salt 
industry competitive in the local and international markets while providing 
opportunities for local employment and establishing salt-based community 
enterprises.
To strengthen local salt production and reduce our dependence on the 
importation, the proposed measure seeks to boost investments in the salt industry by 
providing substantial and attractive incentives to investors, and by pushing 
aggressive trade promotions to expand salt producers' local and international market 
access.
To reinforce government support in the local salt industry, technical and 
financial assistance shall be provided to salt farmers and salt farm registration shall 
also be expedited. Moreover, an inter-agency and stakeholder collaboration shall be


pushed through the creation of a Council that will shepherd the formulation and 
implementation of the Philippine Salt Industry Development Roadmap.
In response to issues corresponding to the mandatory iodization under 
Republic Act No. 8172 or ASIN Law, this bill seeks to exempt from the mandatory 
iodization the exported salt, those to be sold to local gourmet outlets, and those to be 
used for other commercial applications not related to food fortification.
In this regard, the government needs to extend all necessary support to 
strengthen and revitalize the development of the salt industry in the Phihppines.
In view of the foregoing, the approval of this bill is urgently sought.
LOREN LEGARDA


NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
s. No. 1870
Denali:-
of tlj? it-o-mrf
23 FEB 13 P4 23
RECEIVED BY:
Introduced by: Senator Loren Legarda
AN ACT
STRENGTHENING AND REVITALIZING THE DEVELOPMENT OF THE SALT 
INDUSTRY IN THE PHILIPPINES, APPROPRIATING FUNDS THEREFOR, 
AMENDING REPUBLIC ACT NO. 8550, OTHERWISE KNOWN AS "THE 
PHILIPPINE FISHERIES CODE OF 1998," AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in session 
assembled:
1 
Section 1. Short Title. - This Act shall be known as the "PhiHppine Salt Industry
2 
Development Act."
3 
Sec. 2. Declaration of Policy. - It is the policy of the State to promote
4 
industrialization and full employment based on sound agricultural development
5 
through industries that make full and efficient use of human and natural resources,
6 
and which are competitive in both domestic and foreign markets. For this purpose,
7 
the State shall provide support through appropriate technology and research, and
8 
adequate financial, production, marketing, and other support services to revitalize the
9 
salt industry, attain increased income for salt farmers and salt producers, achieve salt
10 
self-sufficiency, and become a net exporter of salt
11 
Sec. 3. Objectives. - This Act aims to make the PhiHppine salt industry
12 
competitive in the local and international markets while providing opportunities for
13 
local employment and establishing salt-based community enterprises by:
14 
a) Promoting the integrated and holistic development of the salt industry in
15 
various aspects of production, processing, marketing, consumption, capacity
16 
building, and regulation;


1 
b) Ensuring that the salt industry has sufficiently identified production areas
2 
through the use of technology;
3 
c) Ensuring cooperation with various government agencies, private entities, and
4 
other relevant sources, to aid in the development of the industry;
5 
d) Promoting investments in the salt by providing substantial and attractive
6 
incentives to investors;
7 
e) Providing skilled labor and manpower through continuous relevant capacity
8 
building;
9 
f) Ensuring the provision of locally manufactured machines with improved
10 
capacity, efficiency, and quality at competitive costs; and,
11 
g) Providing access to markets of local salt locally and internationally through
12 
aggressive trade promotions;
13 
Sec. 4. Definition of Terms - for purposes of this Act, the following terms are
14 
hereby defined as follows:
15 
a) Artisanal Sea Salt refers to unrefined sea salt, derived directly from a living sea
16 
or ocean, harvested and cooked through a natural evaporation process; it
17 
retains natural traces of minerals depending on the source and the manner of
18 
production which is solar-evaporation, cooked or smoked.
19 
b) Food fortification refers to the addition of nutrients to process food at levels
20 
above the natural state.
21 
c) Iodized salt refers to salt artificially spray-coated with iodine.
22 
d) Large-scale Salt Farm/operator/producer shall refer to:
23 
a. An individual owner or leasehold of a salt farm that is more than fifty
24 
(50) but not more than five hundred (500) hectares.
25 
b. An association, cooperative, or corporation that owns or is a leaseholder
26 
of a salt farm that is more than fifty (50) but not more than 1,000 hectares.
27 
e) Medium-scale Salt Farmer/Operator/Producer shall refer to an individual,
28 
association, cooperative, or corporation that owns or is a leaseholder of more
29 
than three (3) hectares but more than fifty (50) hectares of salt farms.
30 
f) Philippine sea salt refers to salt produced from the evaporation of seawater,
31 
brine, or concentrated brine, in any salt farm or refinery within the Phihppines.


1 
g) Salt Farm refers to areas of land, shorelines, or coastal areas, including its
2 
buildings, machinery, and equipment used in salt production.
3 
h) Salt Producer refers to an individual, corporation, cooperative, or association
4 
involved in the production of sea salt.
5 
i) Salt Technology Demonstration Center refers to training facilities where salt
6 
farming, harvesting, cooking, and packaging are done for the purpose of
7 
conducting hands-on training, skills enhancement, and capacity-building.
8 
j) Small-scale salt farmer/operator/producer refers to an individual, association,
9 
cooperative, or corporation that owns or leaseholder of a salt farm of not more
10 
than three (3) hectares.
11 
Sec. 5. Salt as Aquatic Resource. - For purposes of this Act, the following
12 
provisions of RepubUc Act No. 8550, otherwise known as "The Philippine Fisheries
13 
Code of 1998," are hereby amended to read as follows:
14 
(a) Section 4 is hereby amended to read as follows:
15 
"SEC 4. Definition of Terms. - As used in this Code, the phrases shall mean as
16 
follows:
17 
XXX
18 
11. Commercial Scale - A scheme of producing a minimum amount per year of
19 
SALT OR HARVEST OF milkfish or other species including those raised in
20 
pens, cages, and tanks to be determined by the Department in consultation with
21 
the concerned sectors.
22 
XXX
23 
22. Fish and Fishery Aquatic Products - include not only finfish but also
24 
mollusk, crustaceans, echinoderms, marine mammals, and all other species of
25 
aquatic flora and fauna and aU other products of aquatic living resources in any
26 
form, AND SALT.
27 
XXX
28 
28. Fisherfolk - people directly or personally and physically engaged in taking
29 
and/or culturing and processing fishery and aquatic resources INCLUDING
30 
SEA SALT PRODUCED BY SALT FARMERS.
31 
XXX


1 
32. Fishpond - a land-based facility enclosed with earthen or stone material to
2 
impound water for growing fish AND/OR PRODUCING SALT.
3 
XXX
4 
47. Fully developed Fishpond Area - a clean leveled area enclosed by dikes, at
5 
least one foot higher than the highest floodwater level in the locaHty and strong
6 
enough to resist pressure at the highest flood tide; consist of at least a nursery,
7 
a transition pond, a rearing pond, RESERVOIR POND, EVAPORATING
8 
POND, SALT CRYSTALIZER POND, or a combination of any or all said
9 
classes of ponds, and a functional water control system and producing in a
10 
commercial scale."
11 
(b) Section 46 is hereby amended to read as follows:
12 
"SEC. 46. Lease of Fishponds/FISHPOND WITH SALT FARMS - Fishpond
13 
leased to qualified persons and fisherfolk organizations/cooperatives shall be
14 
subject to the following conditions: xxx"
15 
(c) Section 54 is hereby amended to read as follows:
16 
"SEC. 54. Insurance for Fishponds, FISHPONDS WITH SALT FARMS, Fish
17 
Cages, and Fish Pens - Inland Fishponds, INLAND FISHPONDS WITH SALT
18 
FARMS, Fish Cages, and Fish Pens shall be covered imder the insurance
19 
program of the PhiHppine Crop Insurance Corporation for the losses caused by
20 
force majeure and fortuitous events."
21 
Sec. 6. Philippine Salt Industry Development Roadmap (PSIDR). - For the
22 
attainment of the objectives of this Act, there shall be formtdated and established a
23 
Philippine Salt Industry Development Roadmap (Roadmap), which shall include, but
24 
not be hmited to, programs and projects for the development and management,
25 
processing, utihzation, business development, and commerdahzation of Philippine
26 
salt. The Roadmap shall include the following objectives, among others:
27 
a) Expand the number of salt-producing areas;
28 
b) Ensure the sustainable production, management and harvesting, and soil
29 
and water conservation practices in these areas;
30 
c) Encourage salt farming;
31 
d) Ensure the sustainabiUty and viability of the salt industry;
32 
e) Promote investments in the salt industry development programs;


1 
f) Advance market access for Philippine salt products locally and
2 
internationally;
3 
g) Extend technical and financial assistance for the development, processing,
4 
commerciahzation and marketing of the Philippines salt products;
5 
h) Require locally produce salt to be used in the fertilization of coconut farms
6 
by the Philippine Coconut Authority;
7 
i) Develop and distinguish the category of salt areas into artisan salt
8 
production areas, such as gourmet salt-producing areas, iodized salt-
9 
producing areas, salt eco-tourism sites, etc.;
10 
j) Provide continuous training and capacity building in the salt industry
11 
development; and
12 
k) Provide technical and financial assistance in the local design and fabrication
13 
of high-capacity processing equipment and machinery for the salt industry.
14 
Sec. 7. Creation of the Philippine Salt Industry Development Council (PSIDC). - To
15 
ensure the unified and integrated implementation of the PSIDR and accelerate the
16 
modernization and industrialization of the Phihppine salt industry, a Philippine Salt
17 
Industry Development Council (PSIDC) is hereby created with the following
18 
composition:
19 
a) Secretary of the Department of Agriculture (DA), as Chairperson;
20 
b) Secretary of the Department of Trade and Industry (DTI), as Co-
21 
Chairperson;
22 
c) Secretary of the Department of Science and Technology (DOST) as Co-
23 
Chairperson;
24 
d) Director of the Bureau of Fisheries and Aquatic Resources (DA-BFAR), as
25 
Vice-Chairperson;
26 
e) Secretary of the Department of Interior and Local Government (DILG);
27 
f) Secretary of the Department of Health (DOH);
28 
g) Secretary of the Department of Tourism (DOT);
29 
h) The CEO of the Land Bank of the Philippines (LBP);
30 
i) One representative each from the League of Provinces of the Phihppines,
31 
League of Cities of the Phihppines, and League of MunicipaUties of the
32 
Phihppines;


1 
j) One (1) representative each from salt farmers, salt manufacturers, and salt
2 
process associations; and
3 
k) One (1) representative from the private sector involved in a business
4 
belonging to the salt industry.
5 
Sec. 8. Powers and Functions of the Council. - The Coimcil shall have the following
6 
powers and functions:
7 
a) Formulate the Philippine Salt Industry Development Roadmap containing
8 
the short-term, medium-term, and long-term development plan covering a
9 
period of five (5) years;
10 
b) Identify specific and priority programs and projects in support of, and in
11 
line with, the Roadmap;
12 
c) Identify sources of financing and facilitate credit windows with
13 
government banks and the Agricultural Credit Policy Council (ACPC) to
14 
expand the salt industry development;
15 
d) Increase production of local salt by increasing land area devoted to salt and
16 
improving farm productivity;
17 
e) Institutionalize capacity building for salt farmers through the Agricultural
18 
Training Institute;
19 
f) Strengthen Market Linkage and Promotion of Philippine salt;
20 
g) Continual Research and Development such as postharvest technologies
21 
and the establishment of laboratory centers for iodization of food-grade salt;
22 
h) Establish Agri-insurance Program for Salt producers;
23 
i) Submit annual reports, not later than June 30 of each year, to the Office of
24 
the President and to each House of Congress on the status of the
25 
implementation of the Roadmap and the salt industry development in the
26 
countay;
27 
j) Recommend to the Department of Budget and Management the required
28 
yearly appropriations for the plan and implementation of the salt
29 
development programs; and
30 
k) Promulgate such rules and regulations and exercise such other powers and
31 
functions as may be necessary to carry out the objectives of this Act.


1 
Sec. 9. Project Management Office (PMO). - Department of Agriculture thru the
2 
BFAR shall lead in the industry strengthening, expansion, and promotion of the Salt
3 
Industry. Towards this end, a Program Management Office (PMO) is hereby created
4 
under the Office of the Director of the BFAR.
5 
Sec. 10. Department of Science and Technology (DOST) for Research and
6 
Development - The Department of Science and Technology-Forest Products Research
7 
and Development Institute (DOST-FPRDI) shall be tasked to develop and implement
8 
a comprehensive program for the acquisition, design, and manufacture of salt
9 
iodization equipment, and transfer of the salt iodization technology to salt
10 
producers/manufacturers.
11 
Sec. 11. Role of the Local Government Units. - Local Government Units (LGUs) in
12 
cooperation with the DENR, DTI and the DOST-FPRDI, the National Fisheries
13 
Research and Development Institute (NFRDI), and in consultation with the DA and
14 
BFAR shall identify appropriate areas for local salt production in their respective
15 
localities.
16 
Sec. 12. Establishment of Provincial, City, and Municipal Salt Industry Development
17 
Councils and Salt Industry Development Programs. - LGUs shall, as far as practicable,
18 
establish Salt Industry Development Councils in their respective localities. LGUs shall
19 
regularly conduct a survey of existing salt farms and salt enterprises in their respective
20 
localities.
21 
Each local Salt Industry Development Council shall conduct a survey of existing salt
22 
processing enterprises that are operating in the locality.
23 
Sec. 13. Registration of Salt Farms. - The BFAR shall facilitate the prompt
24 
registration of salt farms as well as assist in the design, construction, and development
25 
of small-scale artisanal salt farms either through its own or through a partnership with
26 
the private sector.
27 
Sec. 14. Fishpond Lease Agreements to Include Salt Production. - Fishpond Lease
28 
Agreements (FLAs) shall automatically include salt farming or production as among
29 
the valid activities that may be undertaken by the leaseholder. FLA holders who
30 
intend to venture into salt farming shall be given the same support, training, and
31 
financing given to salt farmers, as provided under this Act.


1 
Sec. 15. Funding for the Development of Salt Farms, Lease of Government Developed
2 
Salt Farms, and Equipment. - The DA-BFAR, in consultation with individuals,
3 
corporations, associations, and cooperatives from the salt industry, will allocate and
4 
provide funding and technical support needed for the maintenance, repair, and
5 
upgrading of existing salt farms and newly constructed government-funded salt
6 
projects. The funds will cover materials, dike and canal repairs, equipment, and other
7 
items specified by industry stakeholders, ensuring the continued productivity and
8 
competitiveness of the salt industry. Government financial institutions such as but not
9 
hmited to, the Land Bank of the Phihppines (LBP) and the Development Bank of the
10 
Philippines (DBP), shall extend financial assistance to viable projects of eligible and
11 
creditworthy salt farmers, cooperatives, and micro, small, and medium enterprises
12 
(MSMEs) for the development, operation, and improvement of salt farms, lease of
13 
government developed salt farms and purchase of salt farming equipment.
14 
Sec. 16. Training/Development Programs. - The DA, together with the DOST, DTI,
15 
FDA, and TESDA, shall provide complementary training programs to
16 
develop/upgrade the skills and competencies of Philippine salt farmers and
17 
producers, ensure product traceability and compliance to food safety, technology
18 
acquisition including product labeling and packaging, conduct continuous training
19 
on market positioning for Philippine artisanal/specialty and industrial salts and such
20 
other skills necessary in the maintenance and development of the local salt industry.
21 
These agencies shall also assist the farmers to be able to effectively comply with the
22 
requirements of Republic Act No. 8172, otherwise known as "An Act for Salt
23 
lodization Nationwide (ASIN)".
24 
Sec. 17. Control Measures. - The BFAR shall adopt measures to ensure
25 
compliance with food safety law guidelines regarding salt intended for human and
26 
animal consumption. Provided that, salt which are not intended for food consumption
27 
shall not be subjected to food safety laws and guidelines;
28 
The BFAR Regional Offices shall ensure that pure, im-iodized salt shall be issued the
29 
necessary transport permits and certification documents for the purposes it is
30 
intended.
31 
Sec. 18. Human Resources Development. - All stakeholders in the salt industry
32 
shall contribute to the development of a sustainable human resource for the industry.
8


1 
Towards this end, the DOLE, in collaboration with the duly recognized salt
2 
associations and salt cooperatives, the Commission on Higher Education, the TESD A,
3 
the Professional Regulation Commission (PRC), and the private sector, shall formulate
4 
and implement a Human Resources Development (HRD) Master Plan for the salt
5 
industry which shall include, but not limited to, the following:
6 
a) Capacity building, skills training, and institutional strengthening of the salt
7 
farm workers, salt farmers, and their organizations to actively contribute to
8 
productivity and competitiveness;
9 
b) Scholarship program for underprivileged but deserving college and
10 
postgraduate students who are taking up courses in relevant fields of discipline
11 
in SUCs which have programs in agriculture, agricultural engineering and
12 
mechanics, and chemical engineering/salt technology; and for vocational
13 
courses and skills development for farmers and farm technicians, and skilled
14 
workers in salt farms; and
15 
c) Conduct capabitity training or attendance to local or international training and
16 
seminars by salt farmers and workers.
17 
Sec. 19. Provision of Incentives to Investors involved in the Salt Development - The
18 
following incentives shall be provided to investors in salt farms development and salt
19 
processing facilities:
20 
a) The Board of Investments shall classify salt farms as preferred areas of
21 
investment under its Investment Priorities Plan (IPP) subject to pertinent rules
22 
and regulations;
23 
b) Salt farm owners, processors, and other related businesses shall be exempt
24 
from the payment of import duties for imported machines and eqmpment
25 
subject to pertinent rules and regulations;
26 
c) Salt farm owners in public lands shall be exempt from the payment of forest
27 
charges that may be imposed by the national government and other fees or
28 
taxes imposed by LGUs;
29 
d) The salt farmers and processors shall be given priority to access credit
30 
assistance and guarantee schemes being granted by GFIs; and


1 
e) Salt farm development and their equipment shall be covered by the
2 
Philippine Crop Insurance Corporation.
3 
Sec. 20. Exemption of Exported Salt and Salt Sold In Local Gourmet Outlets From
4 
Mandatory lodization. - PhiHppine sea salt exported to other countries, those to be sold
5 
to local gourmet outlets, and those to be used for other commercial apphcations not
6 
related to food fortification such as, but not limited to, water treatment, feeds, and
7 
chemical processing shall be exempt from mandatory iodization provided under the
8 
provisions of Repubhc Act No. 8172 or ASIN Law. Food manufacturers, restaurants,
9 
and chefs may also be exempted from the mandatory use of iodized salt on their
10 
specific products under guidelines to be issued by the FDA when the taste or quality
11 
of the product will be significantly altered with the use of iodized salt.
12 
Sec. 21. Congressional Oversight - The Congressional Oversight Committee on
13 
Agriculture and Fisheries Modernization or COCAFM shall see to the full
14 
Implementation of this Act.
15 
Sec. 22. Implementing Rules and Regulations. - Within sixty (60) days from the
16 
effectivity of this Act, DTI, in consultation with the members of the Council and other
17 
relevant stakeholders, shall promulgate the necessary rules and regulations for the
18 
effective implementation of this Act.
19 
Sec. 23. Separability Clause. - Should any provision herein be declared
20 
imconstitutional or invalid, the same shall not affect the vahdity of the other
21 
provisions of this Act.
22 
Sec. 24. Repealing Clause. - AU laws, decrees, orders, rules, and regulations or
23 
other issuances or parts inconsistent with the provisions of this Act are hereby
24 
repealed or modified accordingly.
25 
Sec. 25. Effectivity. - This Act shall take effect fifteen (15) days following its
26 
pubhcation in the Official Gazette or in two (2) newspapers of general circulation.
Approved,
10