Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
irst Regular Session

~~ 3957

HOUSE BILL Ni

Introduced by Representative Wilbert T. Lee

AN ACT MANDATING THE ESTABLISHMENT OF KADIWA CENTERS AS.
AGRI-FOOD TERMINALS IN EVERY CITY AND MUNICIPALITY AND
PROVIDING FUNDS THEREFOR

EXPLANATORY NOTE

Article XIII, Section $ of the 1987 Constitution provides that “{t]he State shall
recognize the right of farmers, farmworkers, and landowners, as well as cooperatives, and other
independent farmers’ organizations to participate in the planning, organization, and
management of the program, and shall provide support to agriculture through appropriate
technology and research, and adequate financial, production, marketing, and other support
services

In the face of the COVID-19 pandemic and nationwide lockdowns, a number of agri-
fishery food suppliers served as one of our commendable front liners who ensured that food is
made available and accessible to every household across the country. Through their efforts,
consumers have availed essential food and products right at the premises of their homes

Amid the rising prices and cost of food, the scaling up of innovative solutions cannot
be overemphasized. One of these successful initiatives is the establishment of “Kadiwa
Centers” The Kadiwa ni Ani at Kita Program is the agribusiness and marketing initiative of the
Department of Agriculture (DA) to help link local farmers and fishers directly to consumers

The Kadiwa initiative, which began in 2019, allows farmers to directly access
consumers without going through a multilayer marketing structure by building Kadiwa food
terminals / storefronts in cities around the nation, allowing farmers to sell their goods at a
higher profit margin. The program was even heightened during the start of the lockdown when
the logistics of goods were hampered. It operates in four modes, namely: Kadiwa Retail or
Direct Selling which establishes physical retail stores to accommodate farmers’ produce for
sale to customers especially in population dense areas; Kadiwa on Wheels which brings agri-
fishery products to barangays and villages through rolling stores in vehicles; There are also
Kadiwa sa Pamahalaan in DA offices, and Kadiwa in Malls. Recently, the program also
launched its Enhanced Kadiwa ni Ani at Kita where it capacitates farmers/fisherfolk
organizations to become reliable food commodity suppliers to consumers and for community
based-organizations to sustainably operate the Kadiwa retail stores. They were granted working
capital to sustain their operations.



In April 2021, the Department of Agriculture reported that 41,357 farmers have
benefited from its Kadiwa ni Ani at Kita program. It was also able to generate P7.241 billion
in sales and served nearly 4 million households in areas where it was rolled out."

Considering the gains of the Kadiwa program as effective Agri-food terminals very
close and accessible to our consumers, these measure aims to scale up the said food terminal
model and effectively promote the growth of the local agricultural markets. If successfully
rolled out in every city and municipality, these agri-food terminals and centers will serve as a
place where local farmers and fisherfolks can sell their produced goods directly to the
consumers and the general market. Prices in Kadiwa are lower by 10 to 20 percent since
bringing the products won’t entail high transportation cost ?

In line with the clear direction of the current administration to prioritize helping our
agriculture and fisheries workers and make food products affordable, it is clear how scaling up
the Kadiwa initiative in many regions across the country can be a concrete and immediate
intervention to the food crisis we face.

In view of the foregoing, the expeditious consideration and approval of this measure in
the 19th Congress is earnestly sought,

. WILBERT T. LEE
Representative
|AGRI PARTYLIST

" Sarao, Z. (13 April 2021) Kadiwa ni Ani at Kita program helped 41,357 farmers, savs DA. Retrieved last 16
August 2021 from: hutps://newsinfo inquirer nc¥/1418536/41357-farmers-benefited-from-kadiwa-ni-ani-at
program-da

* Meniano, S. (22 July 2022) DA-8 official welcomes PBBM's move to revive Kadiwa centers. Retrieved last 17
August 2022 from: https://www pna.gov.ph/articles/1179732



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

3957

HOUSE BILL NO.

Introduced by Representative Wilbert T. Lee

AN ACT MANDATING THE ESTABLISHMENT OF KADIWA CENTERS AS
AGRI-FOOD TERMINALS IN EVERY CITY AND MUNICIPALITY AND
PROVIDING FUNDS THEREFOR
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 "Kadiwa Agri-Food Terminal
Act”.

SEC. 2. Declaration of Policy. \t is hereby declared the policy of the State to assist our
farmers and fisherfolks by providing them a venue to market and trade their produce and give
them access to buyers at affordable prices. Toward this end, instituting a program for the
creation of a nationwide system of agricultural and fisheries food terminals is hereby
established. The goal of these agri-trading centers is to provide an avenue where farmers and
fisherfolks can directly sell their products to consumers and food suppliers. Moreover, this
endeavor for higher mobility for locally produced agricultural products to the whole country
for cheaper cost of transportation.

SEC. 3. Establishment of Kadiwa Agri-Food Terminals. -The Department of
Agriculture (DA), in close coordination with the Local Government Units (LGUs), shall
establish and manage Agri-food Terminals in every city and municipality. The mandatory
establishment of these Agri-food Terminals by the aforementioned LGUs shall select among
the following modes:

a) Kadiwa Retail or Direct Selling- establishing physical food terminals to
accommodate farmers and fisherfolks products for sale to customers and food
suppliers;

b) Kadiwa on Wheels- Using rolling stores in vehicles to bring agri-fishery products
to barangays and villages,

a) Kadiwa sa Pamahalaan- establishing trading centers within the proximity of the
government's property/ office through partnership with DA or other government
agency within the LGU.


SEC. 4 Kadiwa Food Terminal Plan. - In line with this Act, the DA shall develop the
following:

a) Comprehensive plan of rolling out the program in every city and municipality;

b) Outlined process and mutual assistance between the DA, LGUs and other concerned

government agencies and the private sector

©) Schedule of short-term, medium-term and long-term targets on research and

development, marketing, trade promotion/initiatives, capacity building, among
others.

SEC. 5. Appropriation. The amount of Twenty-Five billion pesos (P25,000,000,000)
is hereby appropriated for the Initial year of implementation of this Act, thereafter, the amount
of Ten billion pesos (P10,000,000,000) shall be included in the budget of the DA for
implementation and continued expansion of this program. In addition, the establishment and
operation of food terminals will be made with the available participatory funding from the
national government with adequate equity from the LGUs.

SEC. 6. Implementing Rules and Regulations. Within thirty (30) days from the
effectivity of this Act, the Secretary of Agriculture and the Secretary of Interior and Local
Government, in consultation with appropriate government agencies and other stakeholders,
shall promulgate the necessary rules and regulations to implement this Act. The implementing
rules and regulations shall include a template to guide the cities and municipalities in the
establishment of their own Agri-food Terminals and Trading Centers.

SEC. 7. Separability Clause. If any provision of this Act, or parts thereof, is declared
unconstitutional, the same shall not affect the validity and effectivity of the other portions.

SEC. 8. Repealing Clause. All laws, executive orders, presidential decrees, and
implementing rules and regulations inconsistent with this Act are hereby repealed or modified
accordingly.

SEC. 9. Effectivity. This Act shall take effect fifteen (15) days after its publication in
the Official Gazette or in two (2) newspapers of general circulation.

Approved,