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Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

Twentieth Congress
First Regular Session

HOUSE BILL No. _138

Introduced by Representative Arnan C. Panaligan

EXPLANATORY NOTE

This bill seeks to authorize the National Food Authority to sell directly the
rice buffer stock to consumers, authorized retailers and distribution outlets,
amending for the purpose Republic Act No. 8178, as amended, otherwise known as
the “Agricultural Tariffication Act”.

Section 5, Article XIII of the 1987 Constitution states that “The State shall
recognize the right of farmers, farmworkers, and landowners, as well as
cooperatives, and other independent farmers’ organizations to participate in the
planning, organization, and management of the program, and shall provide support
to agriculture through appropriate technology and research, and adequate
financial, production, marketing, and other support services.”

To promote the integrated growth and development of the grains industry,
Presidential Decree (PD) No. 4, otherwise known as the “National Grains Authority
Act” created the National Grains Authority (NGA). It served as the regulatory and
trading body of rice and corn trade and the distribution of government low-priced
tice with the aim of leading the country towards rice self-sufficiency. In 1981, PD
1770 reconstituted the NGA into the National Food Authority (NFA) that expanded
the functions of the agency and created the program of the Department of Agriculture
such as the KADIWA chain of stores.

On February 14, 2019, Republic Act No. 11203, entitled “An Act Liberalizing
the Importation, Exportation, and Trading of Rice, Lifting for the Purpose the
Quantitative Import Restriction on Rice, and for Other Purposes”, was enacted and
the NFA became a buffer stocking agency. Its power is limited to acquisition,
maintenance, and distribution of rice buffer stock only during emergency or calamity
situations.


Despite the efforts of the government to lower and stabilize the price of rice
in the market, the implementation of RA 11203, which removed the trading function
of the NFA, only contributed to significant and uncontrolled increases in the price
of rice. This led to the enactment of RA 12078, which increased the NFA’s buffer
stock requirement from nine (9) days of national consumption to fifteen (15) days
and strengthened the oversight functions of the Department of Agriculture.

With the continuing increase and unstable price of rice, contrary to the
objective of the Rice Liberalization Program to stabilize the rice supply and lower
the price in the market, demands for the NFA to safeguard the sufficient rice supply
and lower the price of rice for the consumers arise. Reviving the trading power to
sell directly its rice buffer stock to the consumers will enable the NFA to procure
more rice supply from local farmers, ensuring that local farmers will be protected
with competitive pricing from imported rice. Likewise, allowing the NFA to sell the
tice will ensure the regular restocking of rice buffer stock and avoid potential
spoilage.

Hence, authorizing the NFA to sell directly its rice buffer stock to consumers
through authorized retailers and distribution outlets, including farmers cooperatives
and associations and other multi-purpose cooperatives, will be beneficial for both
local farmers and consumers fostering sufficient and stable rice supply and lowering
the price of rice in the market.

In view of the foregoing, the immediate approval of this bill is earnestly
sought.

Boge
ARNAN C. PANALIGAN


Republic ofthe Pilippines
House of Representatives
Quezon City, Metco Manila

‘Twentieth Congress
First Regular Session

HOUSE BILL NO. 138

Introduced by Representative Arnan C. Panaligan

AN ACT
AUTHORIZING THE NATIONAL FOOD AUTHORITY TO SELL
DIRECTLY THE RICE BUFFER STOCK TO CONSUMERS THROUGH
AUTHORIZED RETAILERS AND _ DISTRIBUTION OUTLETS,
AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 8178, AS
AMENDED, OTHERWISE KNOWN AS THE “AGRICULTURAL
TARIFFICATION ACT”
Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:
SECTION 1. Section 11 of Republic Act (RA) No. 8178 as amended by RA
11203 and RA 12078 is further amended to read as follows:
“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.
“The NFA shall dispose of its rice buffer stock one (1) month
before the aging period starts, following the first in, first out method.

“The aging process begins three (3) months from storage for

rice and six (6) months from storage for palay.


“In [beth-cases] CASE OF PALAY, disposal through sale
shall be through public auction. IN CASE OF RICE, NFA SHALL
SELL DIRECTLY THE RICE TO CONSUMERS THROUGH
AUTHORIZED RETAILERS AND DISTRIBUTION
OUTLETS, INCLUDING FARMERS COOPERATIVES AND
ASSOCIATIONS AND OTHER MULTI-PURPOSE
COOPERATIVES.”

SEC. 2. All laws, decrees, executive orders, rules and regulations, or parts

thereof inconsistent with the provisions of this Act are hereby repealed or modified

accordingly.

SEC. 3. This Act shall take effect fifteen (15) days after its publication in

the Official Gazette or in a newspaper of general circulation.

Approved,