THIRTEENTH CONGRESS OF THE REPUBLI 
OF THE PHILIPPINES 
1 
First Regular Session 
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i - '  
i 
S E N A B  
S. No. 
Introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
The fact that rice is the basic staple of Filipinos gives credence to the 
sensitivity of our people in cases of shortage or even a slight increase in the pr.ice* 
of rice. This scenario, as our experience would show, has staggering economic 
and political ramifications. 
It no longer matters if the cause is due to: I )  the 
absence of a mechanism that requires the government to maintain a minimum 
buffer stock level, 2) the lack of foresight of government planners, and 3) 
hoarding or inefficient distribution. 
To obviate future rice shortages and to ensure an adequate, stable, 
continuous and affordable rice supply for our people especially during times of 
emergencies and calamities, this bill seeks to establish a strategic food security 
and rice reserve. A minimum rice reserve equivalent to the 15-day national rice 
consumption is to be established, maintained, and controlled by the government 
through the National Food Authority (NFA), the agency mandated to assure the 
food security of the country especially during times of emergencies and 
calamities, and stabilizing the supply and price of grains. With a fifteen (15) day 
buffer stock, the government can unload or distribute anytime there is a noted 
gap in the supply of rice in the market in any part of the country to effectively 
stabilize the price of this staple. 
In view of the foregoing and with the primordial objective of assuring a 
steady and ample supply of rice, at affordable prices, to our people, especially in 
times of disaster and calamities, the passage of this bill is strongly 
recommended. 
L 
SERGIO OSMENA Ill 
Senator 


THIRTEENTH CONGRESS OF THE REPU 
) 
OF THE PHILIPPINES 
First Regular Session 
B) c 
S. No. c;3 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
ESTABLISHING A STRATEGIC FOOD SECURITY RICE RESERVE 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
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SECTION I. Title. 
This Act shall be known as the "Strategic Food 
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Security Rice Reserve Act of 2004". 
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SEC. 2. Declaration of Policy. - It shall be the policy of the State to 
4 ensure an adequate supply of rice at reasonable and affordable prices for the 
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people in times of calamities. 
SEC. 3. Definition of Terms. -As used in this Act, the following terms 
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shall mean: 
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(a) Calamities are fortuitous events which include acts of God such as 
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but not limited to typhoons, floods, droughts, earthquakes, fires, 
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volcanic eruptions, lahar flows, and acts of man such as political 
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and/or civil disturbances, and wide-spread civil unrest. 
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(b) Government Food Security Rice Reserve is the inventory of rice 
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and/or palay by the National Food Authority (NFA), equivalent to the 
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15-day ave.rage national daily rice consumption to be maintained as a 
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matter of national policy. 
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SEC. 4. Administration. - In order for the National Food Authority (NFA) 
to effectively perform the functions and responsibilities provided for in this Act, it 
shall: 
(I) 
Maintain and manage a government rice reserve equivalent to fifteen 
(15) days of the national rice consumption for the current year and 
determine the location and distribution of such stocks into depots 
nationwide. 
(2) Procure stock from small farmers and farmer’s cooperatives and 
import 
only 
under 
abnormal 
conditions 
determined 
through 
consultation with all affected sectors unless directed otherwise by the 
President: Provided, that, the quality of imported rice shall be regular 
milled rice, thirty-five percent (35%) brokens, or better; 
Provided, 
further, that, in case all or part of the initial reserve is imported, NFA 
will have the option to release the imported stocks at a price that will 
allow it to procure locally its equivalent volume in palay form to 
maintain the fifteen (15) day rice reserve. 
(3) Release to the market said government rice reserve upon 
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the 
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declaration of a state of calamity by the President of the Republic of 
the Philippines: Provided, that, such declaration shall specifically 
state that NFA rice reserve is to be released to the market upon the 
recommendation of the Secretary of the Department of Agriculture: 
Provided, further, that, the release price of said rice shall be based on 
the prevailing market price immediately prior to the occurrence of the 
calamity . 
SEC. 5. Refill of Rice Reserve. The NFA shall ensure that rice stocks 
are refilled in accordance with the provisions of this Act. 
SEC. 6. Sfrengfhening Farmers Cooperafive. Net proceeds from the 
importation of the rice reserve shall be used to strengthen farmer’s cooperatives 
in their grains marketing activities. 
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Agri-based cooperatives shall be strengthened in order ‘to undertake the 
farm-business, agri-business such as but not limited to production and post- 
harvest facilities, processing and marketing services. 
The Cooperative Development Authority (CDA) in coordination with the 
local government units, and other government agencies and in cooperation with 
people 
and 
non-government 
organizations 
(NGOs) 
shall 
initiate 
the 
transformation of ag ri-based cooperatives into entrepreneurs. 
The govern me nt 
will play the catalytic and supportive role without intervention into the internal 
affairs of the cooperative while ensuring that they will adhere to sound business 
principles. 
SEC. 7 Appropriafion. - There shall be appropriated from the funds of 
the National Treasury, a seed money of P3.70 billion for the initial operations of 
the Food Security Fund which shall be constituted into a revolving fund held in 
trust by NFA which shall be used for funding replenishment and as a depository 
for funds obtained from the sale/monetization of food security stocks. Thereafter, 
all such amounts as may be necessary for the continued operation of said Fund 
which shall include the maintenance andlor increase of the Food Security Rice 
Reserve, shall be automatically appropriated in the General Appropriations Act 
as approved by Congress. 
SEC. 8. Monitoring..- The NFA shall regularly review and assess the. 
national palay and rice situation and, on the bases of the data and information 
collected prepare a report to be submitted to the Office of the President and to 
both Committees on Agriculture of Congress. 
SEC. 9. 
Implementing Rules and Regulations. - The NFA 
Administrator shall, within sixty (60) days from the effectivity of this Act, issue the 
implementing rules and regulations of this Act. 
Copies of such rules and regulations shall be submitted to both 
Committees of Agriculture and Food 
of the 
Senate and Hause of 
Representatives, within fifteen (1 5) days from issuance of the same. 
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SEC. I O .  Separability Clause. - If any provision of this Act shall be 
deemed unconstitutional or invalid, the other provisions not affected thereby shall 
remain in force and effect. 
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SEC. I I. 
Repealing Clause. - All Acts, Presidential Decrees, Executive 
Orders and Administrative Orders, Rules and Regulations and other such 
issuances or parts thereof which are inconsistent with the provisions of this Act 
are hereby repealed or modified accordingly. 
SEC. 12. Effecfivify 
Clause. - This Act shall take effect fifteen (1 5) days 
after its complete publication in at least two (2) newspapers of general 
circulation. 
Approved 
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