Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos
EXPLANATORY NOTE
The State, under Article II, Section 18 of the 1987 Constitution,
“affirms labor as a primary social economic force,” thus pledging to “protect
the rights of workers and promote their welfare.” This is reiterated in Article
XIII, Section 3, where the State promises “full protection to labor” and
“recogniz[es] the right of labor to its just share in the fruits of production,”
thus upholding laborers’ “entitle[ment] to…humane conditions of work, and
a living wage.”
In connection, under Article XIII, Section 5, the State assures the
agricultural sector that it “shall provide support to agriculture through
appropriate technology and research, and adequate financial, production,
marketing, and other support services.”
For these reasons, the State must step in and arrest the recent
downtrend in the farm gate price of agricultural goods:1
A. Farmgate Price of Palay
Farmgate price of palay decreases further during the week
The average farmgate price of palay continued its downtrend as it fell
further to PhP 17.64/kg or by 2.2 percent during the period, from its level of
PhP 18.04/kg in the previous week. Meanwhile, it increased at a faster
annual rate of 8.4 percent, from its average price of PhP 16.28/kg in the
same week of the previous year. x x x
B. Farmgate Prices of Yellow and White Corngrains
Farmgate prices of yellow and white corngrains both decline this week
The average farmgate price of yellow corngrain went down to PhP 12.32/kg
or by 4.6 percent this week, from its level of PhP 12.91/kg in the previous
week. It also dropped further at an annual rate of 5.5 percent relative to its
average price of PhP 13.04/kg in the same period of the previous year. x x x
Similarly, the average farmgate price of white corngrain decreased to PhP
13.52/kg or by 5.1 percent during the week, from its previous week’s level
1 Dennis S. Mapa, “Updates on Philippine Palay, Rice, and Corn Prices – Week 1 of
September 2020,” September 21, 2020, PSA Special Release, available at
https://psa.gov.ph/sites/default/files/Updates%20on%20Palay%2C%20Rice%20and%20C
orn%20Prices%2C%20Week%201%20of%20September%202020.pdf.
July 29, 2022
1:04 pm
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of PhP 14.24/kg. On an annual basis, it also dipped at a rate of 6.0 percent
relative to its average price of PhP 14.38/kg during the same period of the
previous year. x x x
C. Wholesale and Retail Prices of Well Milled Rice
Downward movements are still recorded in the prices of well milled
rice at both wholesale and retail trades during the week
The average wholesale price of well milled rice dropped further to PhP
38.57/kg or by 0.6 percent during the week, compared with its previous
week’s level of PhP 38.80/kg. The same trend was registered annually as its
rate dropped by 0.1 percent from its average price of PhP 38.62/kg during
the same period of the previous year. (Table 1 and Figure 4) Likewise, the
average retail price of well milled rice shrank to PhP 42.23/kg or by 0.3
percent this week, relative to its level of PhP 42.35/kg in the previous week.
From its average price of PhP 42.27/kg in the same week of the previous
year, it went down at an annual rate of 0.1 percent. x x x
D. Wholesale and Retail Prices of Regular Milled Rice
Both wholesale and retail prices of regular milled rice continue to
decrease during the week
From its level of PhP 35.22/kg in the previous week, the average wholesale
price of regular milled rice dipped to PhP 34.99/kg or by 0.7 percent during
the week. Meanwhile, it advanced at an annual rate of 1.6 percent from its
average price of PhP 34.45/kg in the same week of the previous year. (Table
1 and Figure 6) The same trend was seen in the average retail price of
regular milled rice which fell to PhP 37.91/kg or by 0.5 percent this week,
from its previous week’s level of PhP 38.08/kg. However, its price picked up
at an annual rate of 0.1 percent from PhP 37.89/kg during the same week
of the previous year. x x x
E. Wholesale and Retail Prices of Yellow Corngrain
Lower wholesale and retail prices of yellow corngrain are still observed
this week
The average wholesale price of yellow corngrain decreased to PhP 20.85/kg
or by 2.4 percent during the week, from its previous week’s level of PhP
21.36/kg. It also moved downward at an annual rate of 3.2 percent from its
average price of PhP 21.53/kg during the same week of the previous year. x
x x
Similar to the trend of the wholesale trade, the average retail price of yellow
corngrain went down to PhP 24.85/kg or by 0.1 percent this week, relative
to its previous week’s level of PhP 24.88/kg. Likewise, from its average price
of PhP 26.06/kg in the same week of the previous year, it recorded an
annual decline of 4.6 percent. x x x
F. Wholesale and Retail Prices of White Corngrain
Both wholesale and retail prices of white corngrain drop this week
The average wholesale price of white corngrain plunged to PhP 15.88/kg or
by 7.9 percent this week, relative to its previous week’s level of PhP
17.25/kg. Likewise, it fell at an annual rate of 10.1 percent, compared with
its average price of PhP 17.67/kg in the same period of the previous year. x
x x
Similarly,
the
average
retail
price of white corngrain shrank to PhP
27.80/kg or by 0.4 percent this week, compared with its previous week’s
level of PhP 27.90/kg. However, relative to its average price of PhP 26.78/kg
in the same period of the previous year, it registered an annual increment of
3.8 percent. x x x (emphasis in the original)


This is a concern that agricultural groups has asked the government not to
take lightly:2
The Philippine government was urged to buy all locally produced palay as
farm-gate prices sank to as low as P12.50 per kilogram (/kg), a move that
may cost around P152 billion or a whopping 2,000 percent increase from
the current budget of the National Food Authority (NFA) for its palay
procurement.
In a statement, Samahang Industriya ng Agrikultura (SINAG) Chairperson
Rosendo So said the Department of Agriculture (DA) must set aside as much
as P152 billion for palay procurement for this harvest season.
This amount, according to him, should be used by NFA, the country’s
state-run grains agency, to buy all locally produced palay at the government
buying price of P19/kg so rice farmers will not be forced to sell at the
current farmgate prices of P12.50/kg to P13.50/kg.
“Harvest has not reached its peak and yet palay prices have already went
down significantly,” So said.
To produce a kilo of rice in the Philippines, Filipino rice farmers have to
spend P12.72 as against the production cost of farmers in Vietnam and
Thailand at P6.22/kg and P8.86/kg, respectively.
This means that the breakeven farmgate price of fresh harvest should be
around P14.50/kg.
“So, who else will buy palay higher than the current farmgate prices?
Member millers of SINAG are complaining because their warehouses remain
full. They can’t release their stock at the same time as the continuous entry
of imported rice into the country,” So said.
This bill is offered as a solution to this problem. This Bill aims to: 1)
regulate farm gate prices, by establishing qualitative, quantitative, and other
related standards, which shall serve as the baseline for determining the
Standard Farm Gate Price for agricultural and fisheries produce; and 2)
strengthen the market linkages to ensure that the farmers, fisherfolk,
livestock raisers, and other members of the food producing sector have an
outlet for their products.
It is for the foregoing premises that the approval of this Bill is
earnestly sought.
ALFRED C. DELOS SANTOS
Representative, Ang Probinsyano Party-List
2 Madelaine Miraflor, “Gov’t urged to buy all palay at higher prices,” Manila Bulletin,
September 14, 2020, available at
https://mb.com.ph/2020/09/14/govt-urged-to-buy-all-palay-at-higher-prices/.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
First Regular Session
HOUSE BILL NO. _______________
Introduced by ANG PROBINSYANO
Party-List Representative Alfred Delos Santos
AN ACT
AUTHORIZING THE DEPARTMENT OF AGRICULTURE TO REGULATE
FARM GATE FOR AGRICULTURAL AND FISHERIES PRODUCTS AND
FOR OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the
Philippines in Congress assembled:
SECTION 1. Short Title. – This Act shall be known as the “Farm Gate
Price Regulation Act.”
SECTION 2. Declaration of Policy. – The State shall protect the right of
farmers, the fisherfolk, livestock raisers, and other sectors involved in food
production to receive a just share of the fruits of their labor. The State shall
therefore establish a program that ensures the profitability of the food
production sector.
SECTION 3. Definition of Terms. – For the purposes of this Act, the
following are hereby defined as follows:
a) Agricultural Products. – Unprocessed food derived from cultivated
plants or animals to sustain or enhance human life. Agricultural
produce shall also refer to unprocessed food derived from the
following activities:
1) Agriculture: cultivating soil, planting, raising, and harvesting
crops, rearing, feeding, and managing animals
2) Aquaculture: raising private aquatic animals (fish)
3) Horticulture: growing fruits, vegetables, and plants
b) Fisheries Products. – Unprocessed food derived from the activity of
catching fish and other living organisms from the wild.
c) Farm Gate Price. – Prices received by farmers for their produce at
the location of the “farm” or the first point of sale. Transportation
and marketing costs shall not be included in farm gate prices.
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SECTION 4. Regulation of Farm Gate Prices. –
The Department of
Agriculture (DA) is authorized to regulate farm gate prices of agricultural
and fisheries products, as defined in Section 3 of this Act, and shall
therefore establish a Standard Farm Gate Price index.
The Standard Farm Gate Price index shall continuously undergo
seasonal review and appropriate changes, considering the time, effort,
resources, market conditions, and other economic indicators so as to ensure
profitability will accrue to the benefit of our food producers.
SECTION
5.
Baseline/Related
Standards.
–
The
Bureau
of
Agriculture and Fisheries Standards of the Department of Agriculture shall
devise qualitative, quantitative, and other related standards which shall
serve as the baseline for determining the Standard Farm Gate Price for
agricultural and fisheries produce.
SECTION 6. Strengthen Market Linkages Program. – The DA shall
strengthen its market linkages program in support of this Act to ensure that
the farmers, fisherfolk, livestock raisers, and other members of the food
producing sector have an outlet for their products.
SECTION 7. Implementing Rules and Regulations. – To ensure proper
and effective implementation of this Act, the DA shall promulgate the
necessary rules and regulations within ninety (90) days from the effectivity
of this Act.
SECTION 8. Separability Clause. – If any provision of this Act shall be
declared unconstitutional or invalid, such declaration shall not invalidate
other parts thereof which shall remain in full force and effect.
SECTION
9.
Repealing
Clause.
–
All
laws,
executive
orders,
presidential decrees or issuances, letters of instruction, administrative
orders, rules, and regulations contrary to or inconsistent with the provisions
of this Act are hereby repealed, amended, or modified accordingly.
SECTION 10. Effectivity Clause. – This Act shall take effect fifteen (15)
days after its publication in the Official Gazette or in a newspaper of general
circulation.
Approved,