FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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SENATE 
S.B. 1135 
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Introduced by Senator Manny Villar 
EXPLANATORY NOTE 
This bill seeks to end the monopoly of the National Food Authority to import rice 
by giving the privilege to import rice to farmer organizations only. The latter are the most 
affected by such bringing in of rice from other countries and that the procurement funds 
of the NFA be utilized only to purchase locally produced palay or farmer imports for food 
security requirements of the country. 
Moreover, this bill likewise mandates BFA to use its funds to procure locally-
produced pa'iay from our farming community in order to further motivate the farmers to 
increase their productivity. 
The farming sector has always been at the receiving end of any rice importation 
as this tend to dampen or lower the price of palay resulting in no or lower income for our 
farmers. It is therefore an opportunity to let importation be an advantage or an 
opportunity for them to earn additional income. 
Approval of this bill is earnestly requested. 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
s.B.1135 
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Introduced by Senator Manny Villar 
AN ACT 
AUTHORIZING FARMER ORGANIZATIONS TO UNDERTAKE RICE 
IMPORTATIONS, PROVIDING FUND ASSISTANCE AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policy- It is hereby declared the policy of the State: 
a. The State recognizes the need for our country to attain food security. To this 
end as long as we are still under quantitative restrictions, it shall authorize farmer 
organizations to be the sole importer of rice in the country and at the same time 
authorize the National Food Authority (NFA) to use its funds to purchase locally 
produced palay only. 
b. The State recognizes the need for farmer organizations to gain training and 
expertise in international trade in anticipation of the lifting of restrictions on importation 
of agricultural products under the World trade Organizations-General Agreement on 
Tariffs and Trade. 
c. The State believes that the funds of the NFA shall be used for our own farmers 
especially those that the need NFA service the most, e.g. upland farmers, areas of less 
trades, areas with less post harvest facilities, etc. provide significant impact to local 
farmers. 
SEC. 2. Administration- The national government through the National Food 
Authority or an agency designated by the President of the Philippines shall: 
a. determine the volume to be imported and for this purpose, issue the 
implementing rules and conditions for the rice importation; 
b. give authority to import rice and transfer such authority to authorize farmer 
organizations only; 
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c. fund allocated by NFA for its rice procurement shall be utilized in the purchase 
of locally produced palay and imported rice for the maintenance of its rice 
reserve requirements; 
d. determine the rice quality to be imported in consultation with importing farmers 
organization based on market requirements; and 
e. keep an inventory of rice and grain supplies for 90 days. 
SEC. 3. 
Determination of Authorized Farmer Organizations-
Farmer 
Organizations shall be accredited and certified by the NFA and the Cooperative 
Development Authority based on a guideline to be issued for this purpose. 
The NFA will playa catalytic and supportive role recognizing the autonomy and 
independence of the internal affairs of the farmer organizations. 
For this purpose, farmer organizations shall refer to associations whose majority 
owners are palay farmers. 
SEC. 4. Monitoring- The Department of. Agriculture shall oversee the national 
palay and rice situation to determine the amount of rice importation. 
SEC. 5. Implemenfing Rules and Regulations - The NFA in consultation with 
concerned sectors shall issue the implementing rules and regulations within thirty (30) 
days from the effectivity of this Act. 
SEC. 6. Repealing C/ause- Any provision of law, executive order, decree or 
rules of court, which may be inconsistent with the provisions of this Act are hereby 
repealed, amended or modified accordingly. 
SEC. 7. Effectivity - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) national newspapers of general 
circulation. 
Approved, 
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