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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. 4260 
Introduced by Representatives Ferdinand Martin G. Romualdez, Yedda 
Marie K. Romualdez, Andrew Julian K. Romualdez and Jude A. Acidre 
AN ACT 
INSTITUTIONALIZING 
THE 
PHILIPPINE 
ABACA 
INDUSTRY 
DEVELOPMENT PROGRAM, PROVIDING FUNDS THEREFOR, AND 
FOR OTHER PURPOSES 
EXPLANATORY NOTE 
Abaca, internationally known as Manila hemp, is endemic to the Philippines. 
The Philippines dominates the global abaca trade as the country supplies about 86.1 
percent of the world’s abaca fiber requirements, and Ecuador and Costa Rica the 
remaining 13.7 percent and 0.2 percent, respectively, as of 2019.  It is also 
considered as the “strongest natural fiber in the world” by the Philippine Department 
of Science and Technology (DOST)  and the Philippine Fiber Industry Development 
Authority (PhilFIDA) . The Philippine abaca has nine grades/classifications of abaca 
fiber, making it versatile in applications.  
Aside from its various uses and its superior strength, the Abaca fiber helps 
meet the growing demand for environment-friendly material, being a natural fiber. 
Waste materials from Abaca are useful too, as fertilizer.  The Abaca plant is good to 
the environment as it helps improve the water holding capacity of soil, thereby 
preventing erosion, floods, and landslides, and addresses sedimentation problems in 
coastal areas where fishes breed. 
September 1, 2025
3:49 pm


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Because of these, Abaca continues to be one of the priority agricultural 
commodities of the Department of Agriculture.  This legislation intends to support 
the growth of the Abaca 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. The framework shall include plans, projects, and policies on planting site 
identification, production support and extension, market promotion, infrastructure 
development, quality assurance, and information center establishment. 
 
 
In view of the foregoing, approval of this bill is earnestly sought. 
 
 
 
 
 
FERDINAND MARTIN G. ROMUALDEZ 
YEDDA MARIE K. ROMUALDEZ 
ANDREW JULIAN K.  ROMUALDEZ 
JUDE A.  ACIDRE 
 
 


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Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
Twentieth Congress 
First Regular Session 
HOUSE BILL NO. 4260
Introduced by Representatives Ferdinand Martin G. Romualdez, Yedda 
Marie K. Romualdez, Andrew Julian K. Romualdez and Jude A. Acidre 
AN ACT 
INSTITUTIONALIZING 
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. 


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Section 3. Definition of Terms. For the purpose of this Act, the following 
terms shall refer to: 
 
a. Council refers to the Philippine Abaca Industry Development 
Coordinating Council (PAIDCC) established herewith; 
 
b. Program refers to the Philippine Abaca Industry Development Program 
designed to promote competitiveness of the Abaca Industry worldwide; 
and 
 
c. Secretariat refers to the Secretariat of the PAIDC as contained herewith 
and shall be headed by Philippine Fiber Development Authority 
(PhilFiDA). 
 
Section 4. Creation of the Philippine Abaca Industry Development 
Coordinating Council (PAIDCC).  - There is hereby created a Philippine Abaca 
Industry Development Coordinating Council, hereinafter referred to the Council, 
administratively attached to the Department of Agriculture (DA), 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 of the Council. - The PAIDCC shall be composed of 


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the following: 
 
a. Secretary of the DA as Chairman; 
 
b. The Executive Director of PhilFIDA 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; and 
 


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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. Institutionalization the Philippine Abaca Industry Development 
Program (PAIDP). - There is hereby established the Philippine Abaca Industry 
Development Program within the mandate of the PhilFiDA which shall be a ten (10)-
year Framework for Development, to be validated and updated annually. Such 
Framework shall serve as guide to the 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 DENR in coordination with the DA, DAR, 
and the local government units (LGUs), 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 DENR and the DOST 
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 


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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 DENR, DA, DTI, and the 
DOST, in coordination with the LGUs and NGOs, 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, and 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 DTI, 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 facilitating the 
participation of local farmers, growers, and exporters in local and 
international conferences, trade fairs, expositions, and exhibits; 
 


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e. Infrastructure Development. Access to post harvest facilities, 
storage and distribution and transport facilities of existing 
government agencies shall be facilitated by the DENR, LGUs, and 
the DA; 
 
f. Quality Assurance. To ensure health and proper trading, the DTI, 
DOST, and PhilFIDA, 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 DTI, in coordination 
with LGUs, shall establish a Philippine Abaca Information Center 
in areas where abacas are abundant. 
 
Section 7. Creation of Philippine Abaca Development Fund (PADF). - 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 PhilFiDA’s budget. 
 
This is in addition to PhilFiDA’s existing allocation under the General 
Appropriations Act for the development of other fibers and its administrative, 


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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. 
 
Section 8. Head of 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 PAIDCC 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 


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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,