SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
SENATE 
SENATE BILL NO. 
'13 
IIUG -6 P 5 :01 
1232 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
EXPLANATORY NOTE 
The National Food Authority (NFA) exercises both regulatory and 
proprietary functions over the grain sector, setting import quantities and at 
the same time serving as the sole importer of the authorized volume of 
imports. Unfortunately, such interventions in the market over the years has 
created severe distortions in the rice market, contributing, among others, to 
the poor productivity of the rice sector over the years, the rice supply gap, 
and the increasing cost of government actions to fill such gaps and 
artificially stabilize rice prices and supply. 
This proposed measure seeks to streamline government intervention in 
the rice sector by removing the rice importation function from the NFA and 
allowing the participation of the private sector in rice importation. Allowing 
market forces to work in the importation, stockpiling and marketing of rice 
will allow for scarce government resources to be re-allocated away from 
costly price stabilization functions to more productive investment in rice 
research and development, extension services and irrigation. 
Specifically, this bill proposes the transformation of NFA from a grain 
marketing monopoly to a public regulatory agency focused primarily on 
maintaining the buffer stock requirement of the country at both national and 
local levels which will allow the country to guard against price volatility due 
to natural calamities or emergencies. Along with this, the NFA shall continue 
other regulatory functions which include the licensing and registration of 
rice importers, allocation of import quotas among licensed rice traders, 
maintenance of marketing information dissemination systems and the 
inspection of stored foodgrains for the purpose of taking inventory. This bill 
further mandates the transfer of duplicative functions of the NFA, including 
the stabilization of prices and the licensing of warehouses to appropriate 
government agencies or local government units. 
In view of the foregoing, urgent approval of this bill is earnestly 
requested. 
JOSEPH VICTOR G. EJERCITO 


SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
First Regular Session 
) 
) 
) 
SENATE 
SENATE BILL NO. 1232 
.it'nah 
leU.;, .1 tlJ. jiorml.,¥ 
"13 
AUG -6 P5 :01 
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO 
AN ACT TO STRENGTHEN AND REORIENT THE MANDATE OF THE 
NATIONAL FOOD AUTHORITY IN ORDER TO ENSURE FOOD 
SUFFICIENCY, FOR THAT PURPOSE RATIONALIZING ITS FUNCTIONS, 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1 . Short Title. - This Act shall be known as the "National 
Food Authority Rationalization Act of 2013." 
SEC. 2. Declaration of Policy. - Affirming the right of every Filipino 
to have access to sufficient food, it is hereby declared the policy of the State 
to make all government agencies and corporations directly responsible for 
food production oriented toward the attainment of food security and 
sufficiency, the enhancement of competitiveness and transparency in the 
rice economy and to be more responsive to the increasing globalization of the 
agricultural market. 
SEC. 3. Policy Goals and Objectives, - To carry out the foregoing 
policy, the mandate, programs and functions of the National Food Authority 
(NFA) , shall be reoriented and realigned towards the achievement of the 
following objectives: 
a. Ensure available adequate and accessible supply of rice and other 
foodgrains during lean periods and in times of calamity and 
emergency; 
b. 
Promote 
regulation 
aimed 
at 
enhancing 
competitiveness, 
transparency and responsibility in the foodgrains marketing industry; 
and 
c. Encourage private sector participation in the importation of rice and 
in production and post-harvest facilities; 


SEC. 4. Reorientation of the National Food Authority (NFA) - The 
functions of the NFA shall evolve to focus primarily on maintaining the buffer 
stock requirements of the country. All other developmental and regulatory 
function of the NFA shall be transferred to appropriate government agencies 
or local government units unless otherwise provided by this Act. 
SEC. 5. Buffer Stock Management. - The NFA shall be the primary 
agency responsible for the management of the buffer stock requirements of 
the country. For this purpose, the NFA shall review on an annual basis the 
buffer stock requirements of the country at the national and local levels and 
shall devise a system of regularly monitoring the buffer stock levels. For the 
purpose of ensuring that desirable buffer stock level of the country are met 
and maintained, the NFA may enter into contracts for the procurement of 
rice for government; Provided that the volume of rice procurement shall not 
be more than the strategic 30-day rice buffer stock requirement of the 
country. 
SEC. 6. Other Powers and Functions. -The NFA shall exercise the 
following responsibilities, powers and functions: 
a. To establish rules and regulations governing private sector 
importation of rice and collect fees and charges for said importation; 
b. To determine and allocate import quotas among private sector 
entities and farmer organizations licensed to engage 
In nce 
importation; 
c. To coordinate with the Bureau of Agricultural Statistics in the 
generation of 
marketing information and establish and maintain 
marketing information dissemination systems in order to keep the 
public informed on the prevailing market situation of foodgrains and 
their substitutes and/or their by-products/end-products in different 
parts of the country; and 
d. To inspect foodgrains and their substitutes and/ or their by-
products, 
stored by any person, partnership, corporation, or 
association, for purposes of taking inventory kind record of such 
commodities, and to enter the premises thereof by use of reasonable 
means. 
SEC. 6. Transfer of Mandate. - The following regulatory and 
developmental functions of the NFA are hereinafter transferred to the 
following: 
a. The registration, licensing and supervision of warehouses, whether 
bonded or not, and the prescription, imposition and collection of fees 
and charges relative thereto to the local government units; 
b. The stabilization of prices of rice, corn and other foodgrains at the 
farmgate level to the Department of Agriculture; 


c. The stabilization of supply and prices of other foodgrains and other 
basic food items at the consumer level to the National Price 
Coordinating Council; 
d. The development of more efficient ways, systems and facilities for 
harvesting, threshing, drying, storage, milling, packaging, post-harvest 
handling, and transporting of foodgrains to the Philippine Rice 
Research Institute. 
e. The registration, licensing, and supervision of persons, natural or 
juridical, who shall engage or are engaged in the business of providing 
goods and services in support of the different activities involved in the 
processing, transporting, marketing, and trading of foodgrains and 
their substitutes and/ or their by-products/ end-products as well as 
the imposition and collection of fees, charges, and surcharges in 
licensing and regulating the operations of such persons to the 
Department of Agriculture: 
f. The formulation of plans and programs on foodgrains production, 
storage, milling and distribution, as well as the coordination for its 
implementation among various agencies of the government and the 
private sector to the Bureau of Agriculture and Fisheries Product 
Standardization; and 
g. The establishment of appropriate post-production technology and 
formulation of plans and programs aimed to reduce post-harvest 
losses to the Bureau of Post Harvest Research and Extension. 
SEC. 7. Role of the Private Sector. -The importation of rice shall 
henceforth be open to the participation of and exclusively undertaken by 
private sector entities and farmers' organizations, subject to appropriate 
tariffs and quotas; Provided, that the necessary registration and licensing 
processes and requirements of the NFA have been complied with. For this 
purposes, the policy of open importation and distribution by all interested 
private parties shall be fully implemented. 
SEC. 8. Transitory Provisions. -Within one (1) year from the 
effectivity of this Act, the NFA shall gradually phase out all its rice 
importation activities to give way to the entry of private sector entities, 
especially farmers' organizations, in rice importation; Provided, that the NFA 
shall have completely ceased all its rice importation functions and activities 
four (4) years from the time of the enactment of this Act. For this purpose, 
the NFA shall, within one hundred twenty (120) days from the enactment of 
this Act, establish the necessary rules and regulations for the importation of 
rice by the private sector. 
To effect a smooth transition, the NFA shall continue to exercise its 
developmental and regulatory functions, until the concerned government 
agencies or local government units shall have established their plans, 
programs and rules and regulations to implement their mandate identified in 
Section 6 above, which in no case shall be no longer than one (1) year from 
the effectivity of this Act. 


,. 
SEC. 9. Rules and Regulations. - The NFA, in consultation with 
relevant government agencies and LGUs, farmer organizations and other 
stakeholders, shall within one hundred and twenty (120) days from the 
enactment of this Act, formulate the necessary rules and regulations to 
effectively implement the provisions of this Act. 
SEC. 10. Separability Clause. - If, for any reason, any section or 
provision of this Act shall be held unconstitutional or invalid, the other 
section or provision not otherwise affected shall remain in full force and 
effect. 
SEC. 11. Repealing Clause. - All laws, presidential decrees, executive 
orders, proclamations, rules and regulations 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 publication in the Official Gazette or in at least two (2) 
newspapers of general circulation. 
Approved,