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Republic of the Philippines
Bouse of Representatives
Quejon City, Metro Manita

Eighteenth Congress

First Regular Session

House Bill No. gape

Introduced by

HON. ANNA MARIE VILLARAZA-SUAREZ and
HON. DAVID C. SUAREZ

EXPLANATORY NOTE

Among Filipinos, rice primarily, and secondarily corn, are considered staple
crops or food. A staple food is one that is consumed routinely and in such quantities
that it constitutes a dominant portion of a standard diet for a given people taken as
often as every day. Hence, not only their biological, but as well as economic
importance cannot be underestimated.

The efficient operation of the rice and corn markets depends on free and fair
competition throughout the value chain. Malicious hoarding of and profiteering on
these basic crops keep these commodities off the markets and distribution chain
creating artificial shortages that drive their prices up. Aggravating the perennial
insufficient production of rice and corn in the country, these illegal activities of
unscrupulous traders and dealers manipulate market prices at the expense of public
economic welfare. And this is not to overlook their obstructive impacts to the
national objective of attaining food security and agricultural development in the
country.

Meanwhile, agriculture is inherently sensitive to climate conditions and is
among the sectors most vulnerable to natural disasters, particularly rice and


corn production. Consequentially, disasters and natural calamities have
significant negative effects on the regular consumption of these staple crops by
People in the affected areas. But these occurrences also present opportunities for
cunning traders and businessmen to generate windfall profits through hoarding of
their goods and commodities, uncaring for the greater difficulties they are causing
to the already suffering people. It is therefore high-time that defensive mechanisms
be put in place to protect the people in their times of need.

Republic Act No. 7581, or the ‘Price Act’ defines and penalizes rice or corn
hoarding or profiteering. This measure proposes that when the acts of rice or corn
hoarding and profiteering are committed on the occasion of any calamity, disaster
or any emergency declared by the President, they shall be deemed equivalent to
economic sabotage and punishable by reclusion perpetua to serve as a stronger
deterrent. In addition, hoarded rice or corn shall be confiscated and forfeited in
favor of the government.

Moreover, to ensure the effective implementation of the objectives of the bill,
an ‘Anti Rice or Corn Hoarding and Profiteering Task Force’ shall be established in
every province, city and municipality to monitor the inventory levels of all rice or
corn mills, warehouses and stockhouses and oversee any possible violation of the
law. The refusal to allow the task force or its duly authorized representatives to
conduct monitoring activity in an establishment shall be prima facie evidence of the
act of rice or corn hoarding and profiteering being perpetrated.

For the foregoing reasons, the immediate consideration and approval of this
bill Is earnestly urged.

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REPRESENTATIVE
ALONA PARTYLIST



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Republic of the Philippines
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Quejon City, Metro Manila
Eighteenth Congress
First Regular Session

2852
House Bill No.

Introduced by

HON. ANNA MARIE VILLARAZA-SUAREZ and
HON. DAVID C. SUAREZ

AN ACT
CONSIDERING RICE OR CORN HOARDING AND PROFITEERING DURING OR
ON THE OCCASION OF ANY CALAMITY OR EMERGENCY DECLARED AS SUCH
BY THE PRESIDENT AS ECONOMIC SABOTAGE, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 7581, OTHERWISE KNOWN AS THE ‘PRICE
ACT’, AND FOR OTHER PURPOSES

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

SECTION 1. Short Title - This Act shall be known as the ‘Anti-Rice or Corn
Hoarding and Profiteering Act’.

SECTION 2. Section 3 of Republic Act No. 7581 is hereby amended to read as
follows :

Section 3. Definition of Terms - For purposes of this Act, the term :

1) xxxx


2A)

3)

SECTION
follows :

‘ECONOMIC SABOTAGE’ IS ANY ACT OR ACTIVITY WHICH
UNDERMINES, WEAKENS OR RENDERS INTO DISREPUTE THE
ECONOMIC SYSTEM OR VIABILITY OF THE COUNTRY OR TENDS
TO BRING ABOUT SUCH EFFECTS AND SHALL INCLUDE, INTER
ALIA, PRICE MANIPULATION TO THE PREJUDICE OF THE PUBLIC
ESPECIALLY IN THE SALE OF BASIC NECESSITIES AND PRIME
COMMODITIES.

‘Implementing agency’ means the department, agency or office of the
Government which has jurisdiction over a basic necessity or prime
commodity as defined in this Act, which shall be:

a) Xxxx

A2) THE NATIONAL FOOD AUTHORITY, WITH REFERENCE TO RICE
AND CORN;

OOK

3. Section 5 of Republic Act No. 7581 is hereby amended to read as

Section 5. Illegal Acts of Price Manipulation. - Without prejudice to
the provisions of existing laws on goods not covered by this Act, it
shall be unlawful for any person habitually engaged in the production,
manufacture, importation, storage, transport, distribution, sale or
other methods of disposition of goods to engage in the following acts
of price manipulation of the price of any basic necessity or prime
commodity:

(1) Hoarding, which is the undue accumulation, STORING OR
KEEPING by a person or combination of persons of any basic
commodity beyond his or their normal inventory levels AS
DETERMINED BY THE IMPLEMENTING AGENCY
CONCERNED or the unreasonable limitation or refusal to dispose
of, sell or distribute the stocks of any basic necessity of prime
commodity to the general public or the unjustified taking out of
any basic necessity or prime commodity from the channels of
reproduction, trade, commerce and industry. There shall be
prima facie evidence of hoarding when a person has stocks of
any basic necessity or prime commodity fifty percent (50%)
higher than his usual inventory and unreasonably limits, refuses
or fails to sell the same to the general public at the time of
discovery of the excess. The determination of a person’s usual


inventory shall be reckoned from the third month immediately
Preceding before the discovery of the stocks in case the person
has been engaged in the business for at least three (3) months;
otherwise, it shall be reckoned from the time he started his
business[-] : PROVIDED, HOWEVER, THAT IN THE CASE OF
RICE OR CORN, A PERSON’S USUAL INVENTORY THEREOF
SHALL BE RECKONED FROM THE MONTH IMMEDIATELY
PRECEDING BEFORE THE DISCOVERY OF THE STOCKS
IRRESPECTIVE OF THE DATE / TIME HE STARTED HIS
BUSINESS;

(2) Profiteering, which is the sale or offering for sale of any basic
necessity or prime commodity at a price grossly in excess of its
true worth. There shall be prima facie evidence of profiteering
whenever a basic necessity or prime commodity being sold:

(a) xxxx
XXXX

(c) Is adulterated, [or] diluted OR MIXED WITH LOWER
QUALITY IN THE CASE OF RICE OR CORN; or

(d) whenever a person raises the price of any basic necessity or
Prime commodity he sells or offers for sale to the general
Public by more than ten percent (10%) of its price in the
immediately preceding month: Provided, That, in the case of
agricultural crops, EXCEPT RICE AND CORN, fresh fish,
fresh marine products, and other seasonal products covered
by this Act and as determined by the implementing agency,
the prima facie provisions shall not apply; and

SECTION 4. A new Section shall be added immediately following Section 13 of
Republic Act No. 7581 to read as follows :

SECTION 13(A) - THE ANTI- RICE OR CORN HOARDING AND
PROFITEERING TASK FORCE; COMPOSITION AND FUNCTIONS -
WITH RESPECT TO RICE AND CORN, THERE SHALL BE CREATED AN
ANTI-RICE OR CORN HOARDING AND PROFITEERING TASK FORCE IN
EVERY PROVINCE, CITY AND MUNICIPALITY TASKED WITH
MONITORING THE INVENTORY LEVEL OF ALL RICE OR CORN MILLS,
WAREHOUSES. AND STOCKHOUSES TO DETERMINE THEIR
RESPECTIVE MONTHLY STOCKS OF RICE OR CORN THEREIN:
PROVIDED, THAT AN INVENTORY REPORT OF ANY OR EVERY
MONITORING ACTIVITY SHALL BE RENDERED BY THE TASK FORCE TO
THE IMPLEMENTING AGENCY CONCERNED, NOT LATER THAN TEN


(10) DAYS FROM THE CONCLUSION THEREOF: PROVIDED, FURTHER,
THAT REFUSAL TO ALLOW THE TASK FORCE OR ITS DULY
AUTHORIZED REPRESENTATIVES TO CONDUCT MONITORING
ACTIVITY IN THESE ESTABLISHMENTS SHALL BE PRIMA FACIE
EVIDENCE OF THE ACT OF RICE OR CORN HOARDING AND
PROFITEERING BEING PERPETRATED THEREAT: PROVIDED, FINALLY,
THAT IF THESE ESTABLISHMENTS ARE OWNED BY JURIDICAL
PERSONS, CRIMINAL LIABILITY FOR VIOLATION OF THIS SECTION
SHALL ATTACH TO THE RESPECTIVE PRESIDENTS, CHIEF OPERATING
OFFICERS OR MANAGERS THEREOF.

THE ANTI-RICE OR CORN HOARDING AND PROFITEERING TASK
FORCE SHALL BE COMPOSED OF THE LOCAL CHIEF EXECUTIVE OF
THE LOCAL GOVERNMENT UNIT CONCERNED WHO SHALL ACT AS ITS
CHAIR; ONE (1) REPRESENTATIVE FROM THE PROVINCIAL/CITY
FIELD/BRANCH OFFICE OF THE IMPLEMENTING AGENCY
CONCERNED; ONE (1) REPRESENTATIVE FROM THE FARMER'S
SECTOR; ONE (1) REPRESENTATIVE FROM THE LOCAL CONSUMER'S
ORGANIZATION/GROUP, IF ANY, AND THE LOCAL CHIEF OF POLICE,
AS MEMBERS.

THE OWNER/OPERATOR/MANAGEMENT OF EVERY RICE OR CORN
MILL, WAREHOUSE OR STOCKHOUSE SHALL BE REQUIRED TO
SUBMIT TO THE TASK FORCE A DULY CERTIFIED AND SWORN
MONTHLY REPORT OF ITS INVENTORY OF RICE OR CORN STOCKS:
PROVIDED, THAT FAILURE TO DO SO SHALL BE PRIMA FACIE
EVIDENCE OF THE ACT OF RICE OR CORN HOARDING AND
PROFITEERING BEING PERPETRATED IN THE ESTABLISHMENT
CONCERNED.

SECTION 5. Section 15 of Republic Act No. 7581 is hereby amended to read as
follows :

Section 15. Penalty for Acts of Illegal Price Manipulation - Any person who
commits any act of illegal price manipulation of any basic necessity or prime
commodity under Section 5 hereof shall suffer the penalty of imprisonment
for a period of not less than five (5) years nor more than Fifteen (15) years,
and shall be imposed a fine of not less than Five thousand pesos (P5,000)
nor more than Two million pesos (P2,000,000)[:]: PROVIDED, THAT THE
ACTS OF RICE OR CORN HOARDING OR PROFITEERING SHALL BE
PUNISHED BY IMPRISONMENT OF NOT LESS THAN TEN (10) YEARS
BUT NOT MORE THAN TWENTY (20) YEARS, AND A FINE OF NOT
LESS THAN ONE HUNDRED THOUSAND PESOS ( P 100,000.00 ) BUT
NOT MORE THAN FIVE MILLION PESOS ( P 5,000,000.00 ):
PROVIDED, FURTHER, THAT WHEN THE ACTS OF RICE OR CORN
HOARDING AND PROFITEERING ARE COMMITTED DURING OR ON
THE OCCASION OF ANY CALAMITY, DISASTER OR ANY EMERGENCY


DECLARED AS SUCH BY THE PRESIDENT OF THE REPUBLIC OF THE
PHILIPPINES, THEY SHALL BE DEEMED AS ECONOMIC SABOTAGE
AND PUNISHABLE BY RECLUSION PERPETUA: PROVIDED, FINALLY,
THAT WHEN THE OFFENDER IS A JURIDICAL PERSON, CRIMINAL
LIABILITY SHALL ATTACH TO ITS PRESIDENT, CHIEF OPERATING
OFFICER OR MANAGER.

FAVOR OF THE GOVERNMENT.
SECTION 6. Implementing Rules and Regulations - Within sixty (60) days from
its effectivity, the National Food Authority shall promulgate the rules and
regulations necessary for the effective implementation of this Act.

SECTION 7. Separability Clause - Any provision of this Act declared
unconstitutional shall not affect the validity of the remaining provisions hereof.

SECTION 8. Repealing Clause - All laws, decrees, executive issuances, rules and
Tegulations inconsistent with this Act are hereby repealed on modified accordingly,

SECTION 9. Effectivity Clause - This Act shall take effect fifteen (15) days after
its publication in the Official Gazette or in a newspaper of general circulation.

Approved.