ON 59
Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session

House Bill No. ae

Introduced by Representative GERALDINE B. ROMAN

EXPLANATORY NOTE

With increased competition from imported rice, resulting in part from the
implementation of the Rice Tariffication Law,' the price of rice has fallen. For example, the
average farmgate price of palay, as of last mid-August, was Php 17.62 per kilo, down 21%
from last year.’ The average wholesale price of well-milled rice decreased 8% to Php 39.14
per kilo toward the end of last July.’ The wholesale price of regular-milled rice fell 10% to
Php 35.27 per kilo while the average retail price also decreased by 7.7% to Php 38.38 per
kilo“

While the reduction in price of rice has benefitted consumers, it has hurt our local
farmers, prompting our President to order the National Food Authority (NFA) to buy the
palay from local farmers to raise the price of palay and boost their income.*Senator Cynthia
Villar has also urged the NFA to relax its procurement requirements based on the moisture

1SeeR.A. No. 11203, “An Act Liberalizing the Importation, Exportation and Trading of Rice, Lifting for the
Purpose the Quantitative Import Restriction on Rice, and For Other Purposes.”

2See J.C. Punongbayan, “Plummeting rice prices: How will our rice farmers cope?,” Rappler (Sept. 5, 2019)

3 See Louise Maureen Simeon, “Palay production down 5% on Q2,” The Philippine Star, 2019,

intps://wvww. philstar.com/business/2019/08/17/1943999/palay-production-down-5-q2 (last visited Sept. 6,
2019)

4 See Louise Maureen Simeon, “Palay production down 5% on Q2,” The Philippine Star, 2019,

https://www. philstar. con/business/2019/08/17/1943999/palay-production-down-5-q2 (last visited Sept. 6,
2019).

5 SeeDarryl John Esguerra, “Duterte orders NFA to buy palay from farmers,” Philippine Daily Inquirer (Sept. 5,
2019), https:/business.inquirer.net/278274/duterte-orders-nfa-to-buy-palay-from-farmersHixzz619kZOOGF (last
Visited Oct. 2, 2019)


content of palay.°Generally, the NFA buys palay with moisture content of only up to 14%,
but it has accommodated palay with moisture content of up to 30%.’ Due to the preference
for “drier” palay or palay with lower moisture content,* the moisture content of palay
inversely relates to palay price. At present, the NFA buys clean and dry palay with up to
14% moisture content at Php 19 per kilo, and wet palay with up to 30% moisture content at
Php 14 per kilo.”

Unfortunately, the rainy season and “lack of drying facilities” has prevented the NFA
from buying enough palay to improve the price of palay and benefit our local farmers.'° This
bill seeks to enhanceour country’srice drying capabilities by mandating the procurement of
both traditional and mechanical drying systems for use by the NFA and our local farmers.
Immediate passage of this bill is earnestly sought.

5

/ GERALDINE B. ROMAN

‘6SeeKarl Ocampo, “NFA urged to relax rules on palay procurement, buy more from farmers,” Philippine Daily
Inquirer (Sept. 4, 2019), https://business. nquirer.net/278 190/nfa-urged-to-relax-rules-on-palay-procurement-
bbuy-more-from-farmerséixzz619grI7Uz (last visited Oct. 2, 2019)

7 Seeid.

8High moisture level can lead to grain discoloration, encourage development of molds, and increase the
ikelihood of attack from pests. It can also decrease the germination rate of the rice seed. It is important to dry
rice grain as soon as possible after harvesting — ideally within 24 hours. Delays in drying, incomplete drying or
ineffective drying will reduce grain quality and result in losses.

‘9SeeCzeriza Valencia, “NFA council sets palay buying price at P19/kilo,” Philippine Star (Sept. 13, 2019),
https://www.philstar.comvheadlines/2019/09/13/1951444/nfa-council-sets-palay-buying-price-
pl9kilo#tkg3dK xr AHQUt5xxi.99 (last visited Oct. 2,2019).

10See Karl Ocampo, “NFA urged to relax rules on palay procurement, buy more from farmers,” Philippine
Daily Inquirer (Sept. 4, 2019), https:/business. inquirer. neU/278 190/nfa-urged-to-relax-rules-on-palay-
procurement-buy-more-from-farmers#tixzz6 19gr17Uz (last visited Oct. 2, 2019).



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

EIGHTEENTH CONGRESS
First Regular Session
5

O71
House Bill No.

Introduced by Representative GERALDINE B. ROMAN

AN ACT
MANDATING THE NATIONAL FOOD AUTHORITY TO ESTABLISH RICE
DRYINGFACILITIESAND APPROPRIATING FUNDS THEREFOR

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 "NFA Rice Drying Facilities Act"
of the Philippines.

SEC. 2. Declaration of Policy. — It is the declared policy of the State to recognize the
indispensable role of the agricultural sector for national growth and development. As such,
the State shall foster an enabling environment for rice producers, and provide the most
appropriate equipment and infrastructure to help rice farmers sell and market their produce.

SEC. 3. Drying Facilities — The National Food Authority (NFA) shallprocure, build,
install, operate, manage, and/or maintainrice drying facilities sufficient in quantity and
geographically accessible to local famers to enable it to buy rice directly from local farmers.
‘These drying facilities shall be used by the NFA solely to dry rice to be bought directly from
local farmers.

The NFA shall allow local farmers to use these drying facilities at no cost for rice to
be directly sold to the NFA.

SEC. 4. Appropriations. - The amount necessary for the implementation of this Act, i.e., to
enable the NFA to procure, build, install, operate, manage, and/or maintain sufficient rice
drying facilities around the Philippines,shall be charged against the appropriations for the
Department of Agriculture and/or sourced fromPAGCOR, PCSO, and the MALAMPAYA
Funds. The required budget for continued implementation of this Act shall be submitted to
the Department of Budget and Management for inclusion in the General Appropriations Act.


SEC. 5. Implementing Rules and Regulations. - Within sixty (60) days from the effectivity
of this Act, the Department of Agriculture shall, through the NFA, issue the necessary rules
and regulations for the effective implementation of this Act, including the procedures for use
of drying facilities by local farmers.

SEC. 6. Repealing Clause. — All laws, presidential decrees or issuances, executive orders,
letters of instruction, administrative orders, rules or regulation inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 7. Separability Clause. — If any provision of this Act is declared unconstitutional, the
remainder of this Act or any provision not affected thereby shall remain in full force and
effect.

SEC. 8. Effectivity. — This Act shall take effect fifteen (15) days after the publication in the
Official Gazette or in a newspaper of general circulation.

Approved,