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RFESTPATION UNIT
BILLS AND iNDEX SERVICE

Republic of the Philippines
HOUSE OF REPRESENTATI
Quezon City

SEVENTEENTH CONGRE

First Regular Session

te
House Bill No, 1745

Introduced by HON. ROZZANO RUFINO B. BIAZON

EXPLANATORY NOTE

ict that rice is the basic staple of Filipinos gives credence to the sensitivity of
our people in cases of shortage or even a slight increase in the price of rice. This scenario, as
our experience would show, has staggering economic and political ramifications. It no
longer matters if the cause is due to: 1. the absence of a mechanism that requires the
government to maintain a minimum buffer stock level; 2. the lack of foresight of government
planners; and 3. hoarding or inefficient distribution.

To obviate future rice shortages and to ensure an adequate, stable, continuous and
affordable rice supply for our people especially during times of emergencies and calamities,
this bill seeks to establish a strategic food security and rice reserve. A minimum rice reserve
equivalent to the 15-day national rice consumption is 10 be established, maintained, and
controlled by the government through the National Food Authority (NFA), the agency
mandated to assure the food security of the country especially during times of emergencies
and calamities, and stabilizing the supply and price of grains. With a fifteen (15) day buffer
stock, the government can unload or distribute anytime there is a noted gap in the supply of
rice in the market in any part of the country to effectively stabilize the price of this staple.

In view of the foregoing and with the primordial objective of assuring a steady and
ample supply of rice at affordable prices to our people, especially in times of disaster and
calamities, the passage of this bill is strongly recommended.

0 RU a B, BIAZON
Representative
Lone District, Muntinlupa City


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

—
House Bill No, 2745

Introduced by HON. ROZZANO RUFINO B. BLAZON

AN ACT
ESTABLISHING A STRATEGIC FOOD SECURITY RICE RESERVE AND FOR
OTHER PURPOSES

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

SECTION I. Title. This Act shall be known as the “Strategic Food Security Rice

Reserve Act”.

See. 2. Declaration of Policy. — It shall be the
adequate supply of rice at reasonable and affordable pi
calamities.

olicy of the State to ensure an
ces for the people in times of

Sec. 3. Definition of Terms. — As used in this Act, the following terms shall mean:

(a) Calamities are fortuitous events which include acts of God such as but not limited
to typhoons, floods, droughts, earthquakes, fires, volcanic eruptions, lahar flows,
and acts of man such as political and/or civil disturbances, and wide-spread civil
unrest.

(b) Government Food Security Rice Reserve is the inventory of rice and/or palay by
the National Food Authority (NFA), equivalent to the 15-day average national
daily rice consumption to be maintained as a matter of national policy.

Sec. 4. Administration. - In order for the National Food Authority (NFA) to
effectively perform the functions and responsibilities provided for in this Act, it shall:



(1) Maintain and manage a government rice reserve equivalent to fifteen (15) days of
the national rice consumption for the current year and determine the location and
distribution of such stocks into depots nationwide.

(2) Procure stock from small farmers and farmer's cooperatives and import only
under abnormal conditions determined through consultation with all affected
sectors unless directed otherwise by the President: Provided, that, the quality of
imported rice shall be regular milled rice, thirty-five percent (35%) brokens, or
better; Provided, further, that, in case all or part of the initial reserve is
imported, NFA will have the option to release the imported stocks at a price that
will allow it to procure locally its equivalent volume in palay form to maintain the
fifteen (15) day rice reserve.

(3) Release to the market said government rice reserve upon the declaration of a state
of calamity by the President of the Republic of the Philippines: Provided, that,
such declaration shall specifically state that NFA rice reserve is to be released to
the market upon the recommendation of the Secretary of the Department of
Agriculture: Provided, further, that, the release price of said rice shall be based
on the prevailing market price immediately prior to the occurrence of the
calamity.

Sec. 5. Refill of Rice Reserve. The NFA shall ensure that rice stocks are refilled in
accordance with the provisions of this Act.

Sec. 6. Strengthening Farmers Cooperatives. Net proceeds from the importation of
the rice reserve shall be used to strengthen farmer’s cooperatives in their grains marketing
activities.

Agriculture-based cooperatives shall be strengthened in order to undertake the farm-
business, agri-business such as but not limited to production and post-harvest facilities,
processing and marketing services.

The Cooperative Development Authority (CDA) in coordination with the local
government units, and other government agencies and in cooperation with peoples and non-
government organizations (NGOs) shall initiate the transformation of agriculture-based
Cooperatives into entrepreneurs. The government will play the catalytic and supportive role
without intervention into the internal affairs of the cooperative while ensuring that they will
adhere to sound business principles.

Sec. 7. Appropriation. ~ There shall be appropriated from the funds of the National
Treasury, a seed money of P3.70 billion for the initial operations of the Food Security Fund
which shall be constituted into a revolving fund held in trust by the NFA which shall be used
for funding replenishment and as a depository for funds obtained from the sale/monetization
of food security stocks. Thereafter, all such amounts as may be necessary for the continued
operation of said Fund which shall include the maintenance and/or increase of the Food
Security Rice Reserve, shall be automatically appropriated in the General Appropriations Act
as approved by Congress.

Sec. 8. Monitoring. - The NFA shall regularly review and assess the national palay
and rice situation and, on the basis of the data and information collected, prepare a report to
2


be submitted to the Office of the President and to both Committees on Agriculture of
Congress,

Sec. 9. Implementing Rules and Regulations. ~The NFA Administrator shall, within
ty (60) days from the effectivity of this Act, issue the implementing rules and regulations
of this Act.

Copies of such rules and regulations shall be submitted to both Committees of
Agriculture and Food of the Senate and House of Representatives, within fifteen (15) days
from issuance of the same.

c. 10. Separability Clause. ~ If any provision of this Act shall be deemed
unconstitutional or invalid, the other provisions not affected thereby shall remain in force and
effect.

Sec. 11. Repealing Clause. - All Acts, Presidential Decrees, Executive Orders and
Administrative Orders, Rules and Regulations and other such issuances or parts thereof
which are inconsistent with the provisions of this Act are hereby repealed or modified
accordingly.

Sec. 12. Effectivity Clause. - This Act shall take effect fifteen (15) days after its
complete publication in at least two (2) newspapers of general circulation.

Approved,