TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
21d JIJL-8 P6:C8
S. No.
SENATE
284
Introduced by Senator Francis G. Escudero
AN ACT
PROMOTING RICE SECURITY BY ENSURING THE ADEQUATE SUPPLY AND 
STABLE PRICE OF RICE AND STRENGTHENING THE MANDATE OF THE 
NATIONAL FOOD AUTHORITY, AMENDING FOR THE PURPOSE REPUBLIC 
ACT NUMBER 8178, OTHERWISE KNOWN AS THE "AGRICULTURAL 
TARIFFICATION ACT," AS AMENDED
EXPLANATORY NOTE
Rice is the staple crop of the Philippines, with each Filipino consuming around 
136 kilograms each year. Given its central role in the Filipino diet, regulation is needed 
to protect families from the price fluctuations of this essential commodity.
This need was recognized as early as 1972, with the establishment of the 
National Food Authority (NFA). However, the passage of Republic Act No. 11203—or 
the Rice Tariffication Law—significantly reduced the NFA's role in regulating the supply 
of rice while opening the market to importation.
The recently enacted R.A. 12078 partially addressed these concerns by 
providing mechanisms such as the declaration of a state of food emergency by the 
Department of Agriculture. However, persistent price instability highlights the need for 
stronger oversight and intervention.
As similarly espoused in House Bill No. 1—filed in the House of Representatives 
by Speaker Ferdinand Martin Romualdez and Representatives Romualdez and Acidre 
in the Twentieth Congress—the proposed Rice Industry and Consumer Empowerment 
(RICE) Act seeks to further empower the Department of Agriculture and the National 
Food Authority.


It will set a more flexible buffer stock requirement of at least nine days, 
authorize the seizure of hoarded rice, require the registration of warehouses and 
traders, establish a rice buffer fund, set floor prices for palay to protect farmers, 
authorize emergency imports when necessary, and impose strict penalties against 
practices that distort supply and pricing.
To be clear, this bill will not restore the quantitative restrictions abolished by 
the Rice Tariffication Law. Rather, it will enable targeted state intervention to protect 
public welfare, support farmers, and ensure food security.
In view of the foregoing, this bill is respectfully submitted for Congress' 
immediate consideration and approval.
Respectfully submitted.
FRANCIS G. ESCUDERO


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
25 JUL-8 P6:C8
SENATE
S. No.
284
Introduced by Senator Francis G. Escudero
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AN ACT
PROMOTING RICE SECURITY BY ENSURING THE ADEQUATE SUPPLY AND 
STABLE PRICE OF RICE AND STRENGTHENING THE MANDATE OF THE 
NATIONAL FOOD AUTHORITY, AMENDING FOR THE PURPOSE REPUBLIC 
ACT NUMBER 8178, OTHERWISE KNOWN AS THE "AGRICULTURAL 
TARIFFICATION ACT," AS AMENDED
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 "Rice Industry and 
Consumer Empowerment (RICE) Act."
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Sec. 2. Section 3 of Republic Act No. 8178, as amended, is hereby further
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amended to read as follows:
"Sec. 3. Definition of Terms. - The following definitions apply to 
the terms used in this Act:
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X X x;
(e) 'Buffer Stock' refers to the optimal level of rice inventory for 
[fifteen -fl-5)] AT LEAST NINE (9) days that shall be maintained to 
sustain the disaster relief programs of the government during natural or 
man-made calamities and to address food security emergency situations 
on rice.
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X X X.
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Sec. 3. Section 5 of Republic Act No. 8178, as amended, is hereby further
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amended to read as follows:
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"Sec. 5. Strengthening the Regulatory Function of the 
Department of Agriculture (DA). - The DA, through the Bureau of Plant 
Industry (BPI), is hereby authorized to:
"x X x;
"(b) Conduct regular inspection of grain warehouses and 
agricultural facilities to ensure compliance with palay and rice quality 
and supply standards and regulations; [and]
"(C) ORDER THE SEIZURE, WHENEVER THERE IS 
CORNERING, HOARDING, PROFITEERING ACTIVITIES AS 
DEFINED IN REPUBLIC ACT NO. 12022, OTHERWISE KNOWN 
AS THE "ANTI-AGRICULTURAL SABOTAGE ACT," AND OTHER 
LAWS, OF RICE AND OTHER GRAINS, THEIR SUBSTITUTES OR 
BY-PRODUCTS, INCLUDING THE FACILITIES UNSED IN THE 
AFOREMENTIONED ACTIVITIES, OR, WHENEVER THERE IS 
SCARCITY OF SUPPLY IN THE RICE MARKET OR 
UNWARRANTED INCREASE IN THE PRICE THEREOF, ORDER 
THE SEIZURE OF THE HOARDED COMMODITY AND ITS PUBLIC 
SALE IN SUCH QUANTITY AS MAY BE NEEDED TO STABILIZE 
THE SUPPLY IN THE AREA OF SCARCITY AND RESTORE PRICES 
TO NORMAL LEVELS.
"TO ENFORCE THIS PROVISION, THE ADMINISTRATOR 
OF THE NATIONAL FOOD AUTHORITY (NFA), OR HIS OR HER 
DULY AUTHORIZED REPRESENTATIVE, IS HEREBY 
AUTHORIZED TO IMPOSE ADMINISTRATIVE FINES AND 
PENALTIES; TO CONDUCT INVESTIGATIONS; TO ISSUE 
SUBPOENA OR SUBPOENA DUCES TECUM TO COMPEL THE 
ATTENDANCE AND TESTIMONY OF WITNESSES, AND THE 
PRODUCTION OF BOOKS, PAPERS, DOCUMENTS, EXHIBITS,


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RECORDS, OR EVIDENCE; TO ADMINISTER OATH; AND TO 
EFFECT THE SAID SEIZURES.
"(D) REGISTER, LICENSE, AND PRESCRIBE AND COLLECT 
FEES, CHARGES, PENALTIES OR SURCHARGES IN LICENSING 
AND REGULATING THE OPERATIONS OF THE FOLLOWING:
"(I) GRAINS WAREHOUSES OR ANY PERSON 
ENGAGED IN STORAGE OF RICE AND OTHER GRAINS, 
THEIR SUBSTITUTES OR BY-PRODUCTS;
"(II) PERSONS, NATURAL OR JURIDICAL, 
ENGAGED OR INTENDING TO ENGAGE IN THE BUSINESS 
OR PROVIDING GOODS AND SERVICES IN SUPPORT OF 
THE DIFFERENT ACTIVITIES INVOLVED IN THE 
PRODUCTION, PROCESSING, TREANSPORTING, 
MARKETING, AND TRADING OF RICE, CORN, OTHER 
GRAINS OR THEIR SUBSTITUTES;
"(III) PERSONS, NATURAL OR JURIDICAL, 
ENGAGED OR INTENDING TO ENGAGE IN THE BUSINESS 
OF WHOLESALE OR RETAIL TRADE OF RICE, CORN, 
OTHER GRAINS OR THEIR SUBSTITUTES; AND
"(IV) PERSONS, NATURAL OR JURIDICAL, 
ENGAGED IN THE PROCESSING OR MANUFACTURE OF 
GOODS WHERE RICE, CORN, OTHER GRAINS OR THEIR 
SUBSTITUTES ARE USED AS INGREDIENTS IN THE 
MANUFACTURE OF STARCH, OIL, ANIMAL FEED, OR 
OTHER SIMILAR COMMODITIES OR END PRODUCTS.
"[(€)] (E) Collect and analyze data on rice trade activities, in 
cooperation with the Philippine Statistics Authority (PSA), the Bureau of 
Customs (BOC), the [National Food Authority (NFA)] NFA, and other 
government agencies for informed policy and operational decisions.


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"The DA-BPI shall exercise the aforementioned powers in addition 
to its existing powers related to sanitary and phytosanitary and food 
safety standards. Upon the request of the DA-BPI, the local government 
units (LGUs), the Philippine National Police, the National Bureau of 
Investigation, or other law enforcement agencies shall provide prompt 
response and assistance in the implementation of this section.
"THE NFA MAY AUGMENT ITS PERSONNEL OR PLANTILLA 
POSITIONS TO CORRESPOND TO ITS ADDITIONAL POWERS 
AND FUNCTIONS."
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Sec. 4. Section 6 of Republic Act No. 8178, as amended, is hereby further
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amended to read as follows:
"Sec. 6. Powers of the DA on Rice Price Stabilization and Supply 
Regulation. - The DA Secretary, upon the recommendation of the 
National Price Coordinating Council (NPCC), shall declare a food security 
emergency on rice due to supply shortage or extraordinary increase in 
prices.
The NPCC shall devise a formula for determining the existence of 
a rice supply shortage or an extraordinary increase in rice prices. When 
such conditions occur, the DA may:
"x X x;
(c) Import rice when the available supply, of locally produced rice 
is inadequate TO MAINTAIN STABLE SUPPLY AND PRICE OF 
RICE. The DA Secretary is authorized to designate the importing entity 
within the DA[, with the exception of the NFA]: Provided, That the 
designated importing entity shall import THE TYPE OF rice TO BE 
DETERMINED BY THE DA SECRETARY at the least cost available 
among government-to-government options, which shall include direct 
contracts between the Philippine government and a foreign government, 
including instrumentalities and State-owned enterprises of such foreign 
government.


X X X.
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Sec. 5. Section 11 of Republic Act No. 8178, as amended, is hereby further
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amended to read as follows:
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"Sec. 11. Maintenance and Disposal of Rice Buffer Stock. - The 
NFA shall, in accordance with rules, regulations, and procedures, 
maintain an optimal rice buffer stock to be sourced exclusively from local 
farmers, FARMER COOPERATIVES, AND FARMERS' 
ASSOCIATION IN PALAY FORM: PROVIDED, THAT IF NEED 
ARISES, PROCUREMENT MAY BE UNDERTAKEN IN THE FORM 
OF MILLED RICE WITHIN THE PRESCRIBED QUALITY 
STANDARDS: PROVIDED, FURTHER, THAT AS FAR AS 
PRACTICABLE, THE PROCUREMENT OF MILLED RICE SHALL 
FOLLOW THIS ORDER OF PREFERENCE: (A) RECIPIENTS OF DA 
RICE PROCESSING SYSTEM, (B) REGISTERED FARMER 
COOPERATIVES, AND (C) RICE MILLS OWNED OR OPERATED 
BY LOCAL GOVERNMENT UNITS (LGUS).
"The NFA shall dispose of its rice buffer stock [one (1) month 
before the aging period starts, following the first in, first out method]
OBSERVING GOOD WAREHOUSE AND STOCK MANAGEMENT 
PRACTICES, WITH THE EFFORT TO PREVENT THE RICE BUFFER 
STOCK FROM AGING.
"The aging process begins three (3) months from storage for 
MILLED rice and six (6) months from storage for RICE IN palay 
FORM.
"In [both] ALL cases[, disposal through sale shall be through 
public auction] AND IN ADDITION TO ITS EXISTING MANDATE, 
THE NFA SHALL ISSUE THE GUIDELINES FOR THE 
DISPOSITION OF RICE STOCKS THROUGH THE FOLLOWING 
MODALITIES:


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"(A) SALE OF RICE TO ACCREDITED NFA RETAILERS AND
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THEIR SUBSEQUENT SALE TO THE PUBLIC, WHICH SHALL BE
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GOVERNMENT BY THE NFA SELLING PRICE BULLETIN;
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"(B) SALE TO GOVERNMENT AGENCIES AND NON-
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GOVERNMENT ENTITIES INCLUDING, BUT NOT LIMITED TO,
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THE FOOD TERMINAL, INC. (FTI), LGUS, THE PUBLIC THROUGH
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KADIWA OUTLETS, ACCREDITED NFA RICE RETAILERS, AND
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FARMERS AND FARMER COOPERATIVES AND ASSOCIATIONS
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THAT SOLD THEIR PALAY TO THE NFA;
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"(C) SALE THROUGH PUBLIC AUCTION; OR
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" (D) SUCH OTHER MEANS OF DISPOSITION AS MAY BE
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ALLOWED UNDER THE LAW.
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" IN ACCORDANCE WITH GOOD WAREHOUSE AND STOCK
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MANAGEMENT PRACTICES, THE NFA SHALL DISPOSE, ON A
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MONTHLY BASIS, A MAXIMUM OF TWENTY FIVE PERCENT
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(25%) OF ITS TOTAL EXISTING BUFFER STOCK UNLESS
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DIRECTED BY THE NFA COUNCIL TO DISPOSE A LARGER
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PORTION THEREOF."
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Sec. 6. A new Section 11-A is hereby inserted after Section 11 of Republic Act
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No. 8178, as amended, to read as follows:
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"SEC. 11-A. SETTING FLOOR PRICE FOR PALAY. - TO
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ENSURE THE ADEQUACY OF SUPPLY AND STABILITY OF PALAY
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PRICES, THE DA SHALL HAVE THE AUTHORITY TO SET AND
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ENFORCE NATIONAL, REGIONAL, OR PROVINCIAL FLOOR
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PRICES OF PALAY BELOW WHICH RICE TRADERS SHALL BE
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PROHIBITED FROM PURCHASING PALAY FROM FARMERS:
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PROVIDED, THAT IN SETTING THE FLOOR PRICES OF PALAY,
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THE DA SHALL TAKE INTO ACCOUNT THE FOLLOWING
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FACTORS:


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AND
'(A) COST OF RICE PRODUCTION;
'(B) PREVAILING MARKET PRICES;
'(C) REASONABLE MARGINS FOR FARMERS;
'(D) WELFARE OF BOTH FARMERS AND CONSUMERS;
'(E) OTHER RELEVANT FACTORS AND CONDITIONS."
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Sec. 7. A new Section 11-B is hereby inserted after Section 11-A of Republic
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Act No. 8178 to read as follows:
"SEC. 11-B. PENALTY. - ANY PERSON WHO VIOLATES 
THE FLOOR PRICE POLICY STIPULATED IN SECTION 11-A OR 
ANY RULE OR REGULATION ISSUED THEREUNDER SHALL BE 
PENALIZED AS FOLLOWS:
"(A) IMPRISONMENT OF NOT MORE THAN TWO (2) 
YEARS, A FINE NOT EXCEEDING TWO MILLION PESOS 
(P 2,000,000.00) OR BOTH, AT THE DISCRETION OF THE 
COURT; AND
"(B) REVOCATION OR SUSPENSION OF LICENSE, 
TRADING PERMIT, OR ACCREDITATION.
"IF THE OFFENDER IS A CORPORATION OR 
ASSOCIATION, THE PENALTY SHALL BE IMPOSED UPON ITS 
RESPONSIBLE OFFICERS SUCH AS THE PRESIDENT, GENERAL 
MANAGER, OR MANAGING PARTNER.
"IF THE OFFENDER IS AN ALIEN, HE OR SHE SHALL BE 
DEPORTED UPON COMPLETION OF HIS OR HER SENTENCE, 
WITHOUT THE NEED FOR FURTHER PROCEEDINGS.
"ANY GOVERNMENT OFFICIAL OR EMPLOYEE FOUND TO 
HAVE AIDED, ABETTED, OR CONNIVED TO VIOLATE SECTION 
11-A OR ANY RULE OR REGULATION ISSUED THEREUNDER


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SHALL BE PUNISHED WITH PERPETUAL DISQUALIFICATION
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FROM HOLDING PUBLIC OFFICE, IN ADDITION TO OTHER
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APPLICABLE PENALTIES."
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Sec. 8. Implementing Rules and Regulations. — Within sixty (60) days from the
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approval of this Act, the DA shall, in consultation with NFA, issue the rules and
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regulations to effectively implement the provisions of this Act.
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Sec. 9. Repealing Clause. — All laws, presidential decrees, executive orders,
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rules and regulations contrary to or inconsistent with the provisions of this Act are
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amended, repealed or modified accordingly.
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Sec. 10. Separability Clause. — If, for any reason, any part or provision of this
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Act is declared invalid or unconstitutional, the remaining parts or provisions not
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affected shall remain in full force and effect.
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Sec. 11. 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 general circulation.
Approved,