Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
EXPLANATORY NOTE 
The Republic Act No. 11203, also known as the Rice Tariffication Law (RTL), was 
enacted in 2019 with the main objective of stabilizing the price of rice in the country. Toward 
this goal, the law, among others, replaced the quantitative restrictions on rice importation with 
a tariff system, instituted the Rice Competitive Enhancement Fund, and limited the powers of 
the National Food Authority (NFA) to buffer stocking for emergency use. The passage of the 
law is also in compliance with the long-overdue commitment of the Philippines to the World 
Trade Organization's Agreement on Agriculture, made in 1994.  
In its first-year implementation, the law was under strong scrutiny due to its impact on 
the steep decline of palay farmgate prices that affected millions of rice farmers.1 According to 
various reports, the price plunged to as low as P7 per kilo of palay, pushing our local farmers 
to extreme economic losses.2 The relatively high production cost of rice in the country in 
comparison to importing countries such as Vietnam and Thailand is seen as a major factor 
affecting this phenomenon. Moreover, the lack of regulatory capacity of concerned agencies 
to curb monopolies, profiteering, and hoarding in the now liberalized rice market contributed 
to the dilemma of our local rice farmers. Specifically, RTL has removed the powers of the NFA 
to import rice and sell it directly to the public, as well as limited the NFA’s procurement 
capacity. With these limitations, local rice farmers were further pushed to resort to traders who 
often dictate the buying price of their produce. Further, the liberalized rice market without 
adequate regulations makes consumer prices vulnerable, making it prone to manipulation, 
thus risking millions of Filipino consumers.  
To address some of these concerns, the RA No. 12078, which amended RTL, was 
passed into law in 2024. It, among others, inserted new provisions aimed at strengthening the 
regulatory functions of the Department of Agriculture in warehouses and storage facilities and 
laying down its powers in declaring a food security emergency on rice or its extraordinary price 
increase. Further, it allowed the DA to import rice when the local rice supply is inadequate. 
While the amended RTL partially responded to the needs of the rice industry, even Department 
of Agriculture (DA) Secretary Tiu-Laurel said that it is lacking in properly and effectively 
managing the country’s rice situation. NFA Administrator even mentioned that if only NFA is 
allowed to directly release stocks to the market, this will ensure better rice quality and 
affordable prices, showing implementing agencies’ strong support of empowering NFA to 
1 Montemayor, R. (2020). Philstar.com. Lawmakers urged to address cause of low palay prices. 
https://www.philstar.com/business/2020/12/10/2062638/lawmakers-urged-address-cause-low-palay-prices 
2 Layug, M.C. (2019) GMA News. As palay prices plunge to P7-P10 per kilo, farmers cry for help. 
https://www.gmanetwork.com/news/topstories/nation/706373/as-palay-prices-plunge-to-p7-p10-per-kilo-farmers-cry-for-
help/story/ 
July 29, 2025
6:37 pm
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ensure rice price stabilization and market fairness.3 Toward this end, this bill seeks to amend 
certain provisions of RA No. 8178, also known as the “Agricultural Tariffication Act” to:  
●
Authorize the Administrator of the NFA to order the seizure of the hoarded commodity
and its public sale to stabilize its supply and prices and impose the necessary
administrative fines and penalties. Further, this bill seeks to authorize the NFA
Administrator in the registration, licensing, and prescription and collection of fees in
licensing and regulating the operations of warehouses, entities engaged in the
business related to rice, corn, and other grains.
●
Allow the NFA to maintain the stable supply and prices of rice through importation, and
allow the DA Secretary to identify the type of rice to be imported.
●
Expand the procurement sources of NFA for its buffer stock by adding farmer
cooperatives and associations, as well as allow procurement in milled form aside from
palay, if the need arises.
●
Highlight the observance of good warehouse and management practices, especially
in stock aging policy on palay and milled rice.
●
Mandate the NFA to release guidelines on the disposition of its buffer stocks and
specifically require the NFA to dispose a maximum of one-fourth of its buffer stock
every month under certain conditions.
●
Insert two new provisions giving the DA, through the NFA, the power to set a floor price
for palay and identify penalties for violations of the law.
In view of the foregoing, the immediate passage of the law is earnestly sought.
HON. MIGUEL LUIS R. VILLAFUERTE 
HON. VINCENZO RENATO LUIGI R. VILLAFUERTE 
HON. TSUYOSHI ANTHONY G. HORIBATA 
HON. TERRY L. RIDON 
3 DA Press Office (2025). Stripped powers leave NFA ineffective in stabilizing rice market. https://www.da.gov.ph/stripped-
powers-leave-nfa-ineffective-in-stabilizing-rice-market/ 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE, HON. VINCENZO 
RENATO LUIGI R. VILLAFUERTE, HON. TSUYOSHI ANTHONY G. HORIBATA, AND 
HON. TERRY L. RIDON 
AN ACT STRENGTHENING THE REGULATORY POWERS OF THE NATIONAL FOOD 
AUTHORITY TO SUPPORT THE RICE INDUSTRY AND ENSURE CONSUMER 
PROTECTION THROUGH ADEQUATE SUPPLY AND STABLE PRICE OF RICE, 
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8178, OTHERWISE KNOWN AS 
THE "AGRICULTURAL TARIFFICATION ACT", AS AMENDED 
SECTION 1. Short Title.  – This Act shall be known as the "Rice Industry and Consumer 
Empowerment (RICE) Act." 
SECTION 2. Declaration of Policy. – It is hereby declared the policy of the State to maintain 
food security and promote rice industry sustainability through an integrated and responsive 
regulatory framework. Towards this end, the State shall enhance the institutional capacity of 
the National Food Authority to oversee rice supply and pricing mechanisms, protect consumer 
welfare, and safeguard the interests of local rice fanners, consistent with equitable and 
strategic trade policy. 
SECTION 3. Section 3 of RA 8178, as amended, is hereby further amended to read as follows: 
"SEC. 3. Definition of Terms. – The following definitions apply to the 
terms used in this Act: 
x x x 
(e) “Buffer Stock” refers to the optimal level of rice inventory for [fifteen
(15)] 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. 
x x x.” 
SECTION 4.  Section 5 of RA 8178, as amended, is hereby further amended to read as follows: 
"SEC. 5. Strengthening the Regulatory Function of the Department of 
Agriculture (DA). – The DA, through the National Food Authority (NFA), is hereby 
authorized to: 
(a) Require the registration and maintain a national database of all grain warehouses,
storage facilities, silos, and controlled-temperature cold storages;
2562


 
(b) Conduct regular inspections of grain warehouses and agricultural facilities to ensure 
compliance with palay and rice and supply standards and regulations; [and] 
 
 
(B-1) ORDER THE SEIZURE, WHENEVER THERE IS CORNERING, HOARDING, 
 
PROFITEERING ACTIVITIES AS DEFINED BY EXISTING LAWS OF RICE AND 
 
OTHER GRAINS AND THEIR SUBSTITUTES AND/OR BY-PRODUCTS THEREOF, 
 
INCLUDING THE FACILITIES USED NI THE SAID CORNERING, HOARDING OR 
 
PROFITEERING ACTIVITIES, OR WHENEVER THERE IS SCARCITY OF SUPPLY 
 
OF RICE IN THE 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 NFA ADMINISTRATOR, OR THE DULY 
 
AUTHORIZED 
REPRESENTATIVE, 
IS 
AUTHORIZED 
TO 
IMPOSE 
 
ADMINISTRATIVE FINES AND PENALTIES; TO CONDUCT INVESTIGATIONS; TO 
 
REQUIRE BY SUBPOENA OR SUBPOENA DUCES TECUM THE ATTENDANCE 
 
AND TESTIMONY OF WITNESSES, THE PRODUCTION OF BOOKS, PAPERS, 
 
DOCUMENTS, EXHIBITS, RECORDS, EVIDENCE; TO ADMINISTER OATH; AND 
 
TO EFFECT THE SAID SEIZURES. 
 
 
(B-2) REGISTER, LICENSE, AND PRESCRIBE AND COLLECT FEES, CHARGES 
 
AND/OR SURCHARGES IN LICENSING AND REGULATING THE OPERATIONS 
 
OF THE FOLLOWING. 
 
i. 
GRAINS WAREHOUSES OR ANY PERSONS ENGAGED IN STORAGE 
OF RICE AND OTHER GRAINS AND THEIR SUBSTITUTES AND/OR BY-
PRODUCTS THEREOF; 
 
ii. 
PERSONS, NATURAL OR JURIDICAL, ENGAGED OR INTENDING TO 
ENGAGE IN THE BUSINESS OF PROVIDING GOODS AND SERVICES 
IN SUPPORT OF THE DIFFERENT ACTIVITIES INVOLVED IN THE 
PRODUCTION, PROCESSING, TRANSPORTING, MARKETING AND 
TRADING OF RICE, CORN AND OTHER GRAINS OR THEIR 
SUBSTITUTES; 
 
iii. 
PERSONS, NATURAL OR JURIDICAL, ENGAGED OR INTENDING TO 
ENGAGE IN THE WHOLESALE AND/OR RETAIL BUSINESS OF RICE, 
CORN AND OTHER GRAINS OR THEIR SUBSTITUTES; AND 
 
iv. 
PERSONS, NATURAL OR JUDICIAL, ENGAGED NI THE PROCESSING 
OR MANUFACTURE OF GOODS WHERE RICE, CORN OR OTHER 
GRAINS OR THEIR SUBSTITUTES ARE USED AS INGREDIENTS IN 
THE MANUFACTURE OF STARCH, OIL AND ANIMAL FEEDS OR 
OTHER SIMILAR COMMODITIES AND THEIR BY-PRODUCTS OR END-
PRODUCTS. 
 
(c) 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), and other government agencies for informed policy and operational decisions. 
 
 
 
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. 
 
 
 
NFA MAY AUGMENT ITS PERSONNEL OR PLANTILLA POSITIONS 
 
CORRESPONDING TO ITS ADDITIONAL REGULATORY POWERS AND 
 
DISTRIBUTION FUNCTIONS." 
 
 
SECTION 5. Section 6 (c) of RA 8178, as amended, is further amended to read as follows: 
 
 
"SEC. 6. Powers of the DA on the Rice Price Stabilization and Supply Regulation. 
 
 
 
x x x 
 
 
(c) Import rice when the available supply of locally produced rice is inadequate TO 
 
MAINTAIN A STABLE SUPPLY AND PRICE CONDITION. The DA Secretary is 
 
authorized to designate the importing entity within the DA [with the exception of the 
 
NFA]: Provided, [t]That the designated importing entity shall import THE TYPE OF rice 
 
TO BE DETERMINED BY THE SECRETARY at the least cost available among 
 
government-to-government options, which shall include direct contracts between the 
 
Philippine government and foreign governments, including instrumentalities and 
 
enterprises of such foreign governments. 
 
 
SECTION 6. Section 1 of RA 8178, as amended, is further amended to read as follows: 
 
 
"SEC. 11. Maintenance and Disposal Rice Buffer Stock. – The NFA shall, in 
 
accordance with the 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 MILLED RICE FORM WITHIN THE 
 
PRESCRIBED QUALITY STANDARDS, IN THE FOLLOWING ORDER OF 
 
PREFERENCE, AS PRACTICABLE, FROM: (A) RECIPIENTS OF DA RICE 
 
PROCESSING SYSTEMS; (B) REGISTERED FARMERS COOPERATIVES; AND 
 
(C) LOCAL GOVERNMENT UNIT (LGU) RICE MILLS. 
 
 
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 STOCKS FROM AGING. 
 
 
The aging process begins three (3) months from storage for MILLED rice and six (6) 
 
months from storage for palay FORM. 
 
 
In [both] ALL cases[,] [disposal through sale shall be through public auction] 
 
AND IN ADDITION TO ITS EXISTING MANDATE TO RELEASE STOCKS IN 
 
RESPONSE TO EMERGENCIES AND CALAMITIES, THE NFA SHALL PROVIDE 
 
THE GUIDELINES ON THE DISPOSITION OF STOCKS THROUGH: 
 
(a) SALE OF RICE TO ACCREDITED NFA RETAILERS AND THEIR SUBSEQUENT 
SALE TO THE PUBLIC SHALL BE GOVERNED BY THE NFA SELLING PRICE 
BULLETIN; 


 
(b) SALE TO GOVERNMENT AGENCIES OR ENTITIES SUCH AS THE FOOD 
TERMINAL, INC. (FTI) AND LGUS, THE PUBLIC THROUGH KADIWA 
OUTLETS, FARMERS AND FARMER COOPERATIVES AND ASSOCIATIONS 
WHO SOLD THEIR PALAY TO NFA, AND ACCREDITED NEA RICE 
RETAILERS; 
 
(c) SALE BY PUBLIC AUCTION; OR 
 
(d) SUCH OTHER MEANS OF DISPOSITION ALLOWED UNDER OTHER LAWS 
ENSURING TRANSPARENCY, COMPETITIVENESS, ACCOUNTABILITY, AND 
PUBLIC MONITORING. 
 
FOR THIS PURPOSE, AND AS AN ESSENTIAL PART OF GOOD STOCK 
MANAGEMENT, THE NFA SHALL DISPOSE MAXIMUM OF ONE-FOURTH OF 
ITS TOTAL EXISTING BUFFER STOCK EVERY MONTH UNLESS DIRECTED 
BY THE NFA COUNCIL TO DISPOSE AHIGHER VOLUME." 
 
  
SECTION 7. New sections to be denominated as Section 11-A and Section 11-B are hereby 
inserted after the Section 11 of RA 8178, as amended, to read as follows: 
 
 
"SEC. 11-A. SETTING OF FLOOR PRICE FOR PALAY. – THE DA SHALL HAVE 
 
THE POWER TO INTERVENE IN THE MARKET TO ENSURE ADEQUACY OF 
 
SUPPLY AND STABILITY OF PRICES OF PALAY. THIS INCLUDES THE 
 
AUTHORITY 
TO 
ESTABLISH 
AND 
IMPLEMENT 
MECHANISMS 
FOR 
 
REASONABLE AND FLEXIBLE FLOOR PRICE OF PALAY, ON NATIONAL, 
 
REGIONAL, AND PROVINCIAL LEVELS AT WHICH THE RICE TRADERS MAY 
 
BUY FROM THE FARMERS, AND TAKING INTO CONSIDERATION THE 
 
FOLLOWING: 
 
 
 
i) COST OF PRODUCTION; 
 
 
ii) PREVAILING MARKET PRICES; 
 
 
iii) REASONABLE MARGINS FOR FARMERS;  
 
 
iv) WELFARE OF BOTH FARMERS AND CONSUMERS; AND 
 
 
v) OTHER RELEVANT FACTORS AND CONDITIONS. 
 
 
THE NEA SHALL UTILIZE ITS REINSTATED REGULATORY FUNCTION TO 
 
ACHIEVE THESE OBJECTIVES." 
 
 
"SEC. 11-B. PENALTIES. – ANY PERSON WHO VIOLATES THE FLOOR PRICE 
 
POLICY OR ANY RULE OR REGULATION ISSUED THEREUNDER SHALL BE 
 
SUBJECT TO: 
 
 
 
i) REVOCATION OR SUSPENSION OF LICENSE, TRADING PERMIT, OR 
 
 
ACCREDITATION; AND 
 
 
ii) A FINE NOT EXCEEDING P2,000,000.00 OR IMPRISONMENT OF NOT 
 
 
MORE THAN TWO (2) YEARS, OR BOTH, AT THE DISCRETION OF THE 
 
 
COURT 
 
 
"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 VIOLATOR IS AN ALIEN, SUCH ALIEN SHALL BE DEPORTED UPON 
 
COMPLETION OF SENTENCE, WITHOUT FURTHER PROCEEDINGS. 
 
 
 
"ANY GOVERNMENT OFFICIAL OR EMPLOYEE FOUND TO HAVE AIDED, 
 
ABETTED, OR CONNIVED IN SUCH VIOLATIONS SHALL BE PERPETUALLY 
 
DISQUALIFIED FROM HOLDING ANY PUBLIC OFFICE, IN ADDITION TO OTHER 
 
APPLICABLE PENALTIES." 
 
SECTION 8. Implementing Rules and Regulations. – The Secretary of Agriculture, in 
coordination with the National Food Authority, shall promulgate such rules and regulations as 
may be necessary to carry out the provisions of this Act, which rules and regulations shall take 
effect fifteen (15) days following their publication in at least one newspaper of general 
circulation. 
 
SECTION 9. Repealing Clause. – All laws, decrees, orders and rules and regulations contrary 
to or inconsistent with the provisions of this Act are hereby repealed or amended accordingly.    
 
SECTION 10. Separability Clause. – If any portion of the provisions of this Act is held 
unconstitutional or invalid, all other provisions not affected shall remain. 
  
SECTION 11. Effectivity. – This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in a newspaper of general circulation.   
   
 
Approved,