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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
First Regular Session 
TWENTIETH CONGRESS 
                  House Bill No. 3960 
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Introduced by REP. JESUS MANUEL “BONG” C. SUNTAY 
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EXPLANATORY NOTE 
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The Constitution commands the State to promote agricultural development and 
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industrialization, to secure a more equitable distribution of opportunities, and to raise 
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the quality of life for all. Yet despite our nation’s abundant harvests, Filipino farmers 
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continue to suffer diminished incomes due to long supply chains, inefficient 
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distribution, and lack of bargaining power. 
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This measure seeks to build the backbone of food security by mandating the 
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establishment of Agri-Food Terminals and Trading Centers (AFTTCs) in every 
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province of the Republic. Each center will house warehousing, cold storage, quality 
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testing, and trading facilities. These shall be strategically located beside transport 
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hubs—rail stations, ports, or major road junctions—so that the produce of our farmers 
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may swiftly reach the tables of our people. 
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The Department of Agriculture, in coordination with concerned agencies and local 
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governments, is charged to draw up a phased implementation plan: in the short term, 
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targeting each province’s top commodities; in the medium term, expanding to wider 
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markets; and in the long term, weaving an integrated national food supply chain. 
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With this measure, we seek to guarantee that the farmer receives a fair price, the 
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consumer pays an affordable cost, and the nation is shielded from hunger and waste. It 
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is a decisive step towards fulfilling the promise of a just and dynamic social order. 
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In view of the foregoing, the immediate passage of this bill is earnestly sought. 
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REP. JESUS MANUEL “BONG” C. SUNTAY 
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August 26, 2025
8:00 am


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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
First Regular Session 
TWENTIETH CONGRESS 
                 House Bill No. 3960
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Introduced by REP. JESUS MANUEL “BONG” C. SUNTAY 
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AN ACT MANDATING THE ESTABLISHMENT OF AGRI-FOOD 
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TERMINALS AND TRADING CENTERS IN EVERY PROVINCE 
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PROVIDING FUNDS THEREFOR AND FOR OTHER PURPOSES 
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Be it enacted by the Senate and the House of Representatives of the Philippines in 
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Congress assembled:  
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Section 1. Short Title. - This Act shall be known as the "Agri-Food Terminal and 
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Trading Centers Act.” 
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Sec. 2. Declaration of Principles and State Policies. – It is hereby declared the 
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policy of the State to give aid to farmers by providing venue to promote and market 
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their produce and giving them access to buyers who can offer competitive prices. 
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Towards this end, a comprehensive program for the creation of a nationwide system 
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of agricultural food terminals and trading centers is hereby established.  
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The goal of these centers is to provide an avenue where farmers and livestock 
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raisers can directly sell their products to institutional buyers and gain higher profit; 
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moreover, this endeavor for a higher mobility for locally produced agricultural 
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products to the whole country for cheaper cost of transportation. 
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Sec. 3. Definition of Terms. - As used in this Act: 
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(a) Agri-Food Terminals – a centralized facility in a province where agricultural
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products are assembled, stored, processed, and distributed.
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(b) Trading Center – a facility that enables direct transactions between producers
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and buyers, including institutional markets, wholesalers, and retailers.
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(c) Smallholder Farmers and Fisherfolk – agricultural workers with limited access to
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resources, land, and capital.
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Sec. 4. Establishment of Agri-Food Terminals and Trading Centers – The 
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Department of Agriculture (DA), in coordination with the Department of Public 
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Works and Highways (DPWH), Department of the Interior and Local Government 
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(DILG), and concerned LGUs, shall establish and manage an Agri-Food Terminals 
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and Trading Center in every province within five (5) years from the effectivity of this 
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Act. Cities and municipalities are hereby encouraged to establish their own Agri-
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Food Terminals and Trading Centers.  
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Agri-Food Terminal and Trading Centers shall have the following standards for 
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their creation and operation: 
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a. It shall be mandatory for the province to setup at least one Agri-food Terminal 
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and Trading Center adjacent to a train stations located within the jurisdiction of the 
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province concerned. 
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b. In provinces where there is no train station, Agri-food Terminal and Trading 
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Center shall be set up strategically near ports, bus terminals or any transport hub 
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within the jurisdiction of the province concerned. 
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c. For the first two (2) years from the date of operation, terminals/centers shall 
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concentrate on the top three (3) agricultural products of the province. The list shall 
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be expanded to five after this period. 
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d. Each center shall be equipped with a warehousing center, cold storage and any 
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similar facilities necessary to accommodate and store agriculture product. 
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Sec. 5. Work Plan. -  In line with this Act, the Department of Agriculture shall 
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develop the following: 
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a. A plan of bringing the program down to the grassroots, utilizing available 
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personnel and facilities on the local level and those of LGUs;  
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b. A pattern of cooperation and mutual assistance with LGUs, Peoples 
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Organizations and Non-Governmental Organizations, which will maximize people 
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empowerment and participatory approaches to program formulation, 
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implementation and monitoring; and 
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c. A schedule of short-term, medium-term and long-term targets on research and 
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development, marketing, trade promotion/initiatives, capacity building, among 
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others. 
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Sec. 6. Funding. – The amount of Twenty-Five billion (Php 25,000,000,000) is 
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hereby appropriated for the initial year of implementation of this act, thereafter, the 
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amount of Ten Billion pesos (Php 10,000,000,000) shall be included in the budget 
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of the Department for implementation and continued expansion of this program. In 
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addition, the establishment and operation of terminals and centers will be made with 
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the available participatory funding from the national government with adequate 
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equity from the Local Government Units.   
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Sec. 9. Implementing Rules and Regulations. – Within thirty (30) days from the 
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effectivity of this Act, the Secretary of Agriculture and the Secretary of Interior and 
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Local Government, in consultation with appropriate government agencies and other 
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stakeholders, shall promulgate the necessary rules and regulations to implement this 
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Act. The implementing rules and regulations shall include a template to guide the 
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cities and municipalities in the establishment of their own Agri-food Terminals and 
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Trading Centers. 
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Sec. 10. Separability Clause. - If any part or provision of this Act shall be declared 
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unconstitutional or invalid, the other provisions hereof which are not affected 
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thereby shall remain in full force and effect. 
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Sec. 11. Repealing Clause. - All laws, decrees, executive orders, memorandum 
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orders, memorandum circulars, administrative orders, ordinances or parts thereof 
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which are inconsistent with the provisions of this Act are hereby deemed repealed or 
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modified accordingly. 
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Sec. 12. Effectivity. - This Act shall take effect fifteen (15) days after its 
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publication in the Official Gazette or in a newspaper of national circulation. 
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Approved, 
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