GE RPRESES
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
- First Regular Session

House Bill No, 2740

Introduced by Representative Julius Cesar “Jay” V. Vergara

EXPLANATORY NOTE

The wide array of agricultural crops that can thrive and be cultivated in the
Philippines is truly astounding so much so that agricultural farming endures to be a
viable source of a sustainable livelihood for many Filipinos and a promising catalyst
for over-all socio-economic growth. Indeed, any effort less than full optimization of
such potential would be most unwise.

One such cash crop would be onions, which have been lauded as the “most
indispensable culinary ingredient in the world” !due to the diverse range of flavors
that it can provide depending on the variety used. Closer to home, it is also among the
choice ingredients recognized to “make our meals distinctly Filipino.”? But
remarkably, apart from its notable contributions to our recipes, onions have also been
used to cure physiological disorders such as cough, obesity, insomnia, hemorrhoids
and constipation.? Hence, like the actual form of the vegetable, there may be indeed
many more layers or useful facets to onion cultivation that just need to be further
explored.

In the Philippines, the onion industry, particularly the local production of
onions, has seen growth. Studies show onion production in the Philippines posted an
average annual growth rate of 4.94% from 2004 to 2013.4 Moreover, compared to
134,161 metric tons (MT) of onions produced in 2013, the country produced about
240,314 MT of onions for the 2018-2019 cropping season.5 Now, after having seen the
industry’s promising potential and notable performance in recent years, our country

' Bureau of Agricultural Statistics ~ Philippine Statistics Authority (April 2014), “2013 Costs & Returns of
‘Onion Production” < https://psa.gov.ph/sites/defaultfiles/2013%20CRS%200nion%20Report.pdf > (last
accessed 03 August 2022)

Department of Agriculture Communications Group (22 January 2020). “DA to keenly monitor production,
import of onion and garlic to temper supply, prices”, < https://www.da.gov.phiida-to-keenly-monitor-production-
import-of-onion-and-garlic-to-temper-supply-prices! > (last accessed 03 August 2022)

> Bureau of Agricultural Statistics op. cit. p.1.

4 Bid.

5 Bureau of Agricultural Statistics op. cit and Department of Agriculture Communications Group op. cit.

1



cannot therefore afford to regress on this opportunity. There is no other sound option
but to build on our gains.

Also, it must be understood that such growth by the Philippine onion industry
was not without its share of challenges. Hence, as issues, such as climate change, insect
pests and diseases, price manipulation by cartels, and smuggling, also evolve, so must
our country’s effective response to these.

The creation of the proposed Philippine Onion Research and Development
Center (hereinafter the “Center”) is then envisioned to be at the forefront of our
country’s unified efforts at harnessing the potential of the onion industry for the
ultimate benefit of our people. Strategically located in the Municipality of Bongabon
in the Province of Nueva Ecija, which is also being proposed to be declared as the
Onion Capital of the Philippines since it has long been hailed as the “Onion Basket of
the Philippines,”* the Center shall closely collaborate with stakeholders especially the
onion farmer communities who heavily depend on the onion industry.

Anchored on a strong research component, the Center shall spearhead in the
formulation of strategy and policy, implementation of programs and projects, and
integration of both public and private sector efforts that hopefully will yield higher
and sustainable income especially for our smallholder onion farmers, more effective
price regulation mechanisms for consumers, a conducive environment for innovation
and entrepreneurship for this industry, and increased over-all productivity and
competitiveness in the global scale.

In view of the foregoing, the immediate adoption of this measure is earnestly

sought.
eee

JULIUS CESAR “JAY” V. VERGARA
Third District, Nueva Ecija

© Marilyn Galang, “No overimportation of onion, N. Ecija farmers told” (Feb 23, 2020)
-<https://www.pna.gov.ph/articles/1094596> (last accessed 03 August 2022)


Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

TWENTIETH CONGRESS
First Regular Session

2740

House Bill No.

Introduced by Representative Julius Cesar “Jay” V. Vergara

AN ACT DEVELOPING THE ONION INDUSTRY, ESTABLISHING FOR THE
PURPOSE THE PHILIPPINE ONION RESEARCH AND DEVELOPMENT
CENTER, DECLARING THE MUNICIPALITY OF BONGABON IN THE
PROVINCE OF NUEVA ECIJA AS THE ONION CAPITAL OF THE
PHILIPPINES, AND PROVIDING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Title - This Act shall be known as the “Onion Industry
Development Act.”

SECTION 2. Declaration of Policy - It is hereby declared the policy of the
State to develop a robust agricultural sector in the country and provide full support
for the sustainable growth of its component industries such as the onion industry,
particularly in its leading producer, the Municipality of Bongabon in the Province of
Nueva Ecija. Towards this end, the State shall institutionalize sound policies and
effective measures to promote, protect, and harness the potential of the local onion
industry for the benefit of its critical stakeholders, especially the onion farmers, and
the entire country.

SECTION 3. Definition of Terms -

a) “Onion” refers to the vegetable that is scientifically known as allium cepa L.
and locally identified as “sibuyas”;

b) “Smallholder onion farmer” refers to a farmer owning and/or cultivating
(6) hectares or less of onion farms;

SECTION 4. Establishment of the Philippine Onion Research and
Development Center - Within a year from the approval of this Act, there shall be
established the Philippine Onion Research and Development Center, hereinafter referred


to as the Center. The Center shall be under the supervision and control of the
Department of Agriculture (DA).

The Center shall maintain its principal office in the Municipality of Bongabon
in the Province of Nueva Ecija. It may create satellite offices, as may be subsequently
deemed necessary, in other identified localities.

SECTION 5. Powers and Functions of the Center - The Center shall:

a)

b)
°)

co)

e)

g)

h

Conduct research and technical studies on the development, production,
processing, management and marketing of onions;

Develop appropriate technologies that are beneficial to the onion industry;
Enable onion farmers, especially smallholder onion farmers, to have
convenient access to quality onion seeds, modern production techniques,
technical assistance, and other support services, including but not limited
to providing assistance in securing crop insurance as well as in establishing
linkages with other stakeholders in the domestic and international onion
industry;

Undertake training and capacity-building programs for onion farmers and
cooperatives in order to increase production of high-quality onions and
raise the level of income especially of poor smallholder onion farmers;
Train personnel who will undertake research and development work on
onions;

Assist in the establishment of community-based onion enterprises to
generate livelihood opportunities;

Encourage cooperative development among smallholder onion farmers and
provide them access to resources, technological know-how, as well as
decision-making processes for the enhancement of their onion enterprises
and the protection of their welfare;

Assist in the monitoring of the domestic supply of onions and, when
necessary, submit recommendations for the grant of related importation
permits;

Publish research studies, papers, articles, and other works or writings
relating to the onion industry on a regular basis with the end goal of
benefiting onion farmers and other industry stakeholders;

Coordinate with the DA, Department of Trade and Industry (DTI),
Department of Science and Technology (DOST), and the Department of
Environment and Natural Resources (DENR) to consolidate all policies,
programs, and projects on onion research and development;

Receive and manage grants, aid, donations, contributions, or any kind of
assistance through the DA, upon recommendation of the Advisory Board;
and

Such other functions and duties necessary or incidental to the promotion
and development of the onion industry.


SECTION 6. Executive Director of the Center - The Executive Director shall
head the Center and shall report directly to the Advisory Board.

The Executive Director shall be a recognized expert in onion research and
policy development, with at least three (3) years of experience in the onion industry,
and shall have a strong organizational management background. The Executive
Director shall be appointed by the DA Secretary within sixty (60) calendar days after
the effectivity of the implementing rules and regulations of this Act and upon the
recommendation of the Advisory Board. The Executive Director shall serve in a full
time capacity for a term of five (5) years which may be renewed.

The Executive Director shall strictly avoid any conflict of interest in the conduct
and performance of duties for the duration of the term.

SECTION 7. Powers and Functions of the Executive Director of the Center -
The Executive Director of the Center shall:

a) Implement and enforce research and policy direction and priorities,
policies, decisions, orders, rules, and regulations determined by the
Advisory Board;

b) Exercise administrative and supervisory functions over the planning,
implementation, and evaluation of the policies, programs, and projects of
the Center;

fS

Recommend to the Advisory Board, the following:

i. Organizational structure of the Center;
ii. _ Appointment of personnel, including research fellows, officers, and
employees; and
iii, Overall budget of the Center;

d) Submit to the Advisory Board, regular reports on the Center to include
annual reports on operations, status of programs and projects, and the
financial condition of the Center;

e) Execute contracts, incur obligations, acquire and dispose of assets, and
deliver documents on behalf of the Center within the limits of the authority
determined by the Advisory Board;

£) Generate and obtain logistical and financial support for the programs and
component units of the Center with the assistance of the Advisory Board:
Provided, That in so doing, no conflict of interest exists with the objectives of
this Act and the functions of the Center; and


g) Exercise and perform such other powers, functions, and duties as may be

authorized or assigned by the Advisory Board and in accordance with the
objectives of this Act.

SECTION 8. Advisory Board - There is hereby created an Advisory Board,
which is principally mandated to develop strategies, policies and programs aimed at
effectively harnessing the potential of the Philippine onion industry and improving
the state of technologies to produce, process and/or market high-quality onions to
meet global standards for competitiveness and product quality.

The Advisory Board shall be composed of the following:

a)
b)
Go)

d

)

e)

f)

DA Secretary or his/her representative, as Chairperson;
DTI Secretary or his/her representative, as Vice Chairperson;

DOST Secretary or his/her representative;

DENR Secretary or his/her representative;

Mayor of the Municipality of Bongabon, Nueva Ecija or his/her
representative;

One (1) representative from the onion farmers to be appointed by the
President of the Philippines, upon the recommendation of the DA Secretary,
for a term of three (3) years.

SECTION 9. Powers and Functions of the Advisory Board - The Advisory
Board shall:

a) Provide the general direction and priorities of the Center in accordance with

b)

°)

d)

e)

8)

)

this Act;

Determine research and policy areas for study by the Center and an annual
research agenda, in consultation with the Executive Director, based on the
regular assessment of local and international developments affecting the
onion industry;

Provide advice to the Center on any matter relating to the development of
a research or policy area and the administration of research programs;
Approve the organizational structure, appointment of personnel, and over-
all budget of the Center;

Monitor and evaluate the implementation, efficiency and, effectiveness of
the programs and projects undertaken by the Center;

Assist the Executive Director in generating resources and obtaining
logistical and financial support for the programs and component units of
the Center: Provided, That in so doing, no conflict of interest exists with the
objectives of this Act and the functions of the Center; and

Assign additional powers, functions, and duties of the Executive Director
in accordance with the objectives of this Act.


SECTION 10. Onion Capital of the Philippines - The Municipality of
Bongabon in the Province of Nueva Ecija is hereby declared, or granted the official
designation as the Onion Capital of the Philippines.

SECTION 11. Special Account for Onion Research - A Special Account in the
General Fund (SAGE) for onion research, which shall be maintained and managed by
the Bureau of Treasury, shall be established to support the research undertaken by the
Center. The SAGF for onion research shall recognize and accept grants, aid, donations,
and contributions collected for onion research, for purposes of executing its mandate
and functions: Provided, That in so doing, no conflict of interest exists with the
objectives of this Act and the functions of the Center.

SECTION 12. Appropriations - The amount necessary to carry out the
provisions of this Act shall be included in the General Appropriations Act of the year
following its enactment into law and thereafter.

SECTION 13. Implementing Rules and Regulations - Within ninety (90)
calendar days from the effectivity of this Act, the DA shall, in collaboration with the
DTI, DOST, DENR, the Local Government Unit of the Municipality of Bongabon in
the Province of Nueva Ecija, members of the academe, and other public and private
stakeholders, issue and promulgate the necessary rules and regulations to implement
the provisions of this Act.

SECTION 14. Separability Clause - If any portion or provision of this Act is
declared unconstitutional or invalid, the remainder of this Act or any provision not
affected thereby, shall remain in force and effect.

SECTION 15. Repealing Clause - Any law, decree, issuance, order, letter of
instruction, rule and regulation or parts thereof, which are inconsistent with or
contrary to the provisions of this Act, are hereby repealed, amended or modified
accordingly.

SECTION 16. Effectivity - This Act shall take effect fifteen (15) days following
its complete publication in the Official Gazette or a newspaper of general circulation.

Approved,