FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
, SENATE 
Senate Bill No. 741 
10 
,JlIL -7 P4;,13 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
This bill seeks to establish a strategic food security and rice reserve. A 
minimum rice reserve equivalentto 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. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 741 
;l~ " ' 
OFF'CE. (,~: Tr-'" 
Sl:CfH":: 1'J\RV 
10 
clllL -7 P4 :113 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
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: 
' 
SECTION 1. Title. This ,Act shall be known as the "Strategic Food 
Security Rice Reserve Act of 2010." 
SEC. 2. Declaration of Policy. - It shall be the policy of the State to 
ensure an adequate supply of rice at reasonable and affordable prices for the 
people in times of calamities, 
SEC. 3. Definition of Terms. - As used in this Act, the following terms 
shall mean: 
(a) Calamities are fortuitoLis events which include acts of God such as but 
not limited to typhoons, floods, droughts, earthquakes, fires, volcanic eruptions, 
lahar flows, and acts of man such as political and/or civil disturbances, and wide-
spread civil unrest. 
(b) Government Food Security Rice Reserve is the inventory of rice and/or 
palay by the National Food Authority (NFA), equivalent to the 15-day average 
national daily rice consumption t() be maintained as a matter of national policy. 
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: 
' 
(1) 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 the 
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. Strengthening Farmers Cooperatives. Net proceeds from the 
importation of the rice reserve shall be used to strengthen farmer's cooperatives 
in their grains marketing activities'. 
Agri-based cooperatives shall be strengthened in order to undertake the 
farm-business, agri-business such as but not limited to production and 
postharvest 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 
peoples 
and 
non-government 
organizations 
(NGOs) 
shall 
initiate 
the 
transformation of agri-based cooperatives into entrepreneurs. The government 
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. Appropriation. c 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 the 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 and/or increase of the Food 
Security Rice Reserve, shall pe 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 basis 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 House 
of Representatives, within fifteen (15) days from issuance of the same. 
SEC. 10. 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. 
SEC. 11. 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. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its complete publication in at least two (2) newspapers of general 
circulation. 
Approved,