Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
EXPLANATORY NOTE 
The Native Abaca, endemic to the Philippines, had already been cultivated as far back 
as pre-Colonial period with its fibers being woven into fabric. At present, the fibers 
have evolved into a number of uses, such as a substitute for synthetic materials like 
plastic. Its high tensile strength and versatility for manufacture into a wide-range of 
products has propelled the Philippines to being the largest producer of Abaca fibers, 
supplying about 87% of the world's requirement for the produce. The Abaca industry 
has recorded an annual average of PhP 4.7 billion in export earnings, per the 
Philippine Fiber Industry Development Authority (PhilFlDA). 
Intonationally known as "Manila hemp", the Abaca continues to be one of the priority 
agricultural commodities of the Department of Agriculture. This legislation intends to 
support the growth of this industry by institutionalizing the Philippine Abaca Industry 
Development Program, a 10-year framework for plans, projects, and policies for 
scientific propagation, processing utilization, and expansion of trade of Philippine 
Abaca. This aims to also help solve problems in the cultivation of Abaca plants and 
ensure its competitiveness. 
Reportedly, demand for the commodity is increasing while production has slowed. In 
addressing this, the bill proposes for the production extension and infrastructure 
development for the industry to provide adequate technologies and facilities for 
production and strengthen the sectors involved in the development of the Philippine 
Abaca. The bill proposed also ensures that this development program is sufficiently 
funded by creating a Philippine Abaca Development Fund for needed technologies 
for the program, in addition to PhilFlDA's allocation under the General Appropriations 
Act. 
The future is filled with opportunities for the Abaca industry, with new hybrid varieties 
being produced and studied by experts in the country1. And with demand not showing 
signs of slowing down, focus on the sustainability of the Abaca plant and the industry 
1 http://www.philstar.com/agricuIture/2017/01 [08/1660512/new-hybrid-varieties-tighten-abaca-industry 
July 11, 2022
5:21 pm
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in general is imperative. The State is here to push this progress forward through 
meaningful legislation and keep the country's place in the world market. 
 
The approval of this bill is earnestly sought. 
 
 
 
 
 
 
 
 
 
 
 
 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.             MIGUEL LUIS R. VILLAFUERTE   
 
 
 
 
 
 
 
 
 
 
 
 
TSUYOSHI ANTHONY G. HORIBATA  
 
 
NICOLAS ENCISO VIII 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.,  
HON. MIGUEL LUIS R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. 
HORIBATA AND HON. NICOLAS ENCISO VIII 
AN ACT 
INSITITUTIONALIZING THE PHILIPPINE ABACA INDUSTRY DEVELOPMENT 
PROGRAM, PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 
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 "Philippine Abaca Industry 
Development Program". 
SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State to 
protect and promote the right of the Filipino people to a better quality of life, improve 
their living conditions, through programs that provide sustainable livelihood, increase 
employment and protect the environment. 
SECTION 3. Definition of Terms. — For the purpose of this Act, the following terms 
shall refer to: 
a) Program — the Philippine Abaca Industry Development Program designed to
promote competitiveness of the Abaca Industry worldwide.
b) Philippine Abaca Industry Development Council (PAIDC) — the Council
established herewith.
c) Secretariat — the Secretariat of the PAIDC as contained herewith shall be
PhilFlDA.
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SECTION 4. There is hereby created a Philippine Abaca Industry Development 
Coordinating Council (PAIDCC), hereinafter referred to as the Council, 
administratively attached to the Department of Agriculture, charged with the main 
function of coordinating the activities of various agencies and instrumentalities to 
ensure the accomplishment of the Philippine Abaca Framework for Development. 
The Chairman of the Council shall submit an annual report to both Houses of 
Congress on the status of the implementation of this Act. 
 
SECTION 5. Composition. — The Philippine Abaca Industry Development 
Coordination Council shall be composed of the following: 
a) Secretary of the Department of Agriculture as Chairman (DA); 
b) The Executive Director of PhilFlDA as Head of the Council Secretariat; 
c) Head of the National Abaca Research Center (NARC); 
d) Secretary of the Department of Environment and Natural Resources (DENR); 
e) Secretary of the Department of Agrarian Reform (DAR); 
f) Secretary of the Department of Science and Technology (DOST); 
g) Secretary of the Department of Trade and Industry (DTI); 
h) Representative from the League of Municipalities of the Philippines; 
i) Representative from the League of Provinces; 
j) Representative from a reputable Private Abaca Industry Association; 
k) Two (2) Representatives from Abaca Farmers'/Producers'/Processors' 
Associations; 
l) One (1) Representative from Non-Governmental Organizations (NGOs). 
The Council shall regularly meet every two (2) months and may hold special meetings, 
whenever the need arises, to consider urgent matters upon the call of the Chairman 
or any seven (7) Council members. 
 
SECTION 6. Institutionalizing the Philippine Abaca Industry Development 
Program (PAIDP). — There is hereby established the Philippine Abaca Industry 
Development Program within the mandate of the Philippine Fiber Development 
Authority (PhilFlDA) which shall be a ten (10) year Framework for Development, to be 
validated and updated annually. Such Framework shall serve as guide to the 


 
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formulation and implementation of plans, projects, programs, and policies for the 
scientific propagation, processing, utilization, and expansion of trade of Philippine 
Abaca. The Framework shall likewise provide for the following: 
a) Site Identification — The Department of Environment and Natural Resources 
in coordination with the Department of Agriculture, Department of Agrarian 
Reform and the local government units, shall identify the broad areas suitable 
for the planting and propagation of Philippine Abaca, within six (6) months 
after the effectivity of this Act. 
b) Scientific Propagation and Development — The Department of Environment 
and Natural Resources and the Department of Science and Technology shall 
establish cultivation and propagation of Philippine disease free and disease 
resistant varieties of abaca. The DOST shall also provide for the transfer and 
improvement of appropriate technology and techniques, which will be utilized 
in the production, processing, marketing and distribution. Particular emphasis 
shall also be made on adoption and upgrading of post-harvest technology; 
c) Production Support and Extension — The Department of Environment and 
Natural Resources, Department of Agriculture, Department of Trade and 
Industry, and the Department of Science and Technology in coordination with 
the local government units and non-governmental organizations, Technical 
Education and Skills Development Authority (TESDA), Cooperative 
Development Authority (CDA), state universities and colleges (SUCs), and 
other relevant government agencies, shall establish programs which promote 
and provide adequate training on adapting technologies to individuals 
engaged in propagation, production, processing, marketing and distribution 
of Philippine abaca, strengthen farmers'/producers'/processors' cooperatives 
and organizations involved in the sustainable and viable development of 
Philippine abaca. 
d) Market Promotion and Expansion of Trade — The Department of Trade and 
Industry, in coordination with Private Industry Associations, shall linkup 
agribusiness cooperatives and organizations directly with consumers' 
cooperatives and organizations, agro-processing companies, or exporters to 
provide marketing outlets and assure relatively higher and stable prices of 
abaca. This also includes exploring national and international markets and 


 
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facilitating the participation of local farmers, growers, and exporters in local 
and international conferences, trade fairs, expositions, and exhibits; 
e) Infrastructure Development — Access to post harvest facilities, storage and 
distribution/transport facilities of existing government agencies shall be 
facilitated by the Department of Environment and Natural Resources, local 
government units, and the Department of Agriculture. 
f) Quality Assurance — To ensure health and proper trading, the Department of 
trade and Industry, Department of Science and Technology, and PhilFlDA, 
respectively, shall establish and enforce standards in grading, sampling and 
inspection, tests and analysis, specifications, nomenclature, units of 
measurement, packaging, preservation, conservation or transportation of 
Philippine abaca products and by-products; and 
g) Philippine Abaca Information Center — The Department of Trade and 
Industry in coordination with Local Government Units shall establish a 
Philippine Abaca Information Center in areas where they are abundant. 
 
SECTION 7. Philippine Abaca Development Fund. — To provide for the funding 
requirements for the propagation, production, processing, marketing, promotion and 
distribution of Philippine abaca, there is hereby created a Philippine Abaca 
Development Fund (PADF), with an initial amount of Five Hundred Million Pesos (Php 
500,000,000.00) upon the approval of this Act and every year thereafter, to be 
provided by the Department of Budget and Management in the PhilFlDA's budget. 
This is in addition to PhilFlDA's existing allocation under the General Appropriations 
Act for the development of other fibers and its administrative, regulatory and 
operational expenses. Of this amount, Fifty Million Pesos (Php 50,000,000.00) shall 
be allocated for the Philippine Abaca Research Center, Visayas State University in 
Baybay, Leyte, for the abaca research and development and extension program. 
For the succeeding years, for the next nine (9) years from the approval of this 
Act, a minimum amount of not less than Five Hundred Million Pesos (Php 
500,000,000.00) annually shall be allocated for the development and sustainability of 
the Abaca Industry. The requirements of cooperating agencies shall be incorporated 
in their respective budget from the General Appropriations fund. 
 


 
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SECTION 8. The Council Secretariat. — The Council Secretariat shall be headed by 
the Executive Director of the PhilFIDA. The Secretariat and technical staff shall be 
detailed from their existing personnel without prejudice to the designation by the 
Council of such additional staff members as it may deem necessary for the proper 
discharge of its function and responsibilities. 
 
SECTION 9. Implementing Rules and Regulations. — The Philippine Abaca 
Industry Development Coordinating Council shall formulate and prescribe the 
necessary implementing rules and regulations to carry out the provisions of this Act. 
 
SECTION 10. Repealing Clause. — All laws, decrees, executive orders and rules 
and regulations contrary to or inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly. 
 
SECTION 11. Separability Clause. — If any provision of this Act is held invalid or 
unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions hereof. 
 
SECTION 12. Effectivity Clause. — This Act shall take effect fifteen (15) days after 
its publication in the Official Gazette or in two (2) newspapers of general circulation. 
 
Approved,