Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

_ 1265

HOUSE BILL NO.

Introduced by HONORABLE LUIS RAYMUND F. VILLAFUERTE, JR.

EXPLANATORY NOTE

The Native Abaca, endemic to the Philippines, had already been cultivated as far
back as pre-Colonial period’ , with its fibers being woven into fabric. At present,
the fibers have evolved into a number of uses, such as a substitute for synthetic
materials like plastic’. Its high tensile strength and versatility for manufacture
into a wide-range of products has propelled the Philippines to being the largest
producer of Abaca fibers, supplying about 87% of the world's requirement for
the produce. The Abaca industry has recorded an annual average of PhP 4.7
Billion in export eamings, per the Philippine Fiber Industry Development
Authority (PhilFIDA)?.

Intemationally known as "Manila hemp", the Abaca continues to be one of the
priority agricultural commodities of the Department of Agriculture’. This
legislation intends to support the growth of this industry by institutionalizing the
Philippine Abaca Industry Development Program, a 10-year framework for plans,
projects, and policies for scientific propagation, processing utilization, and
expansion of trade of Phil
the cultivation of Abaca plants and ensure its competitiveness.

pine Abaca. This aims to also help solve problems in

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Reportedly, demand for the commodity is increasing while production has
slowed? . In addressing this, the bill proposes for the production extension and
infrastructure development for the industry to provide adequate technologies
and facilities for production and strengthen the sectors involved in the
development of the Philippine Abaca. The bill proposed also ensures that this
development program is sufficiently funded by creating a Philippine Abaca
Development Fund for needed technologies for the program, in addition to
PhilFIDA's existing allocation under the General Appropriations Act.

The future is filled with opportunities for the Abaca industry, with new hybrid
varieties being produced and studied by experts in the country‘. And with
demand not showing signs of slowing down, focus on the sustainability of the
Abaca plant and the industry in general is imperative. The State is here to push
this progress forward through meaningful legislation and keep the country's
place in the world market.

The approval of this bill is earnestly sought.

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Lu YM F. VILLAFUERTE, JR.

2

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Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 1265

Introduced by HONORABLE LUIS RAYMUND F. VILLAFUERTE, JR.

AN ACT
INSITITUTIONALIZING THE PHILIPPINE ABACA INDUSTRY
DEVELOPMENT PROGRAM, PROVIDING FUNDS THEREFOR AND
FOR OTHER PURPOSES

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

SECTION 1. Short Title. — This Act shall be known as the "Philippine Abaca Industry
Development Program of 2017"

SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State to
protect and promote the right of the Filipino people to a better quality of life, improve

their living conditions, through programs that provide sustainable livelihood, increase
employment and protect the environment.

SECTION 3. Definition of Terms. — For the purpose of this Act, the following terms.
shall refer to:

a) Program — the Philippine Abaca Industry Development Program designed to
promote competitiveness of the Abaca Industry worldwide

b) Philippine Abaca Industry Development Council (PAIDC) — the Council
established herewith.


C) Secretariat — the Secretariat of the PAIDC as contained herewith shall be
PhilFIDA.

SECTION 4. There is hereby created a Philippine Abaca Industry Development
Coordinating Council (PAIDCC), hereinafter referred to as the Council,
administratively attached to the Department of Agriculture, charged with the main
function of coordinating the activities of various agencies and instrumentalities to
ensure the accomplishment of the Philippine Abaca Framework for Development.

The Chairman of the Council shall submit an annual report to both Houses of
Congress on the status of the implementation of this Act.

SECTION 5. Composition. — The Philippine Abaca Industry Development
Coordination Council shall be composed of the following:

a) Secretary of the Department of Agriculture as Chairman (DA);

b) The Executive Director of PhilFIDA as Head of the Council Secretariat;

c) Head of the National Abaca Research Center (NARC);

d) Secretary of the Department of Environment and Natural Resources (DENR);
€) Secretary of the Department of Agrarian Reform (DAR);

f) Secretary of the Department of Science and Technology (DOST);

8) Secretary of the Department of Trade and Industry (DTI);

h) Representative from the League of Municipalities of the Philippines;
i) Representative from the League of Provinces;

J) Representative from a reputable Private Abaca Industry Association;

k) Two (2) Representatives from Abaca Farmers'/Producers'/Processors’
Associations;

!) One (1) Representative from Non-Governmental Organizations (NGOs).

The Council shall regularly meet every two (2) months and may hold special meetings,
whenever the need arises, to consider urgent matters upon the call of the Chairman or
any seven (7) Council members.

SECTION 6. Institutionalizing the Philippine Abaca Industry Development Program
(PAIDP). — There is hereby established the Philippine Abaca Industry Development

Program within the mandate of the Philippine Fiber Development Authority (PhilFIDA)
which shall be a ten (10) year Framework for Development, to be validated and
updated annually. Such Framework shall serve as guide to the formulation and


implementation of plans, projects, programs, and policies for the scientific
propagation, processing, utilization, and expansion of trade of Philippine Abaca. The
Framework shall likewise provide for the following:

a) Site Identification — The Department of Environment and Natural Resources in

coordination with the Department of Agriculture, Department of Agrarian
Reform and the local government units, shall identify the broad areas suitable
for the planting and propagation of Philippine Abaca, within six (6) months after
the effectivity of this Act.

b) Scientific Propagation and Development — The Department of Environment

¢

and Natural Resources and the Department of Science and Technology shall
establish cultivation and propagation of Philippine disease free and disease
resistant varieties of abaca. The DOST shall also provide for the transfer and
improvement of appropriate technology and techniques, which will be utilized
in the production, processing, marketing and distribution. Particular emphasis
shall also be made on adoption and upgrading of post-harvest technology;

Production Support and Extension — The Department of Environment and
Natural Resources, Department of Agriculture, Department of Trade and
Industry, and the Department of Science and Technology in coordination with
the local government units and non-governmental organizations, Technical

Education and Skills Development Authority (TESDA), Cooperative
Development Authority (CDA), state universities and colleges (SUCs), and
other relevant government agencies, shall establish programs which promote
and provide adequate training on adapting technologies to individuals engaged
in propagation, production, processing, marketing and distribution of Philippine
abaca, strengthen —_farmers!/producers'/processors’ cooperatives and

organizations involved in the sustainable and viable development of Philippine
abaca.

d) Market Promotion and Expansion of Trade — The Department of Trade and

Industry, in coordination with Private Industry Associations, shall linkup
agribusiness cooperatives and organizations directly with consumers’
cooperatives and organizations, agro-processing companies, or exporters to
provide marketing outlets and assure relatively higher and stable prices of
abaca. This also includes exploring national and international markets and
facilitating the participation of local farmers, growers, and exporters in local and
intemational conferences, trade fairs, expositions, and exhibits;

e) Infrastructure Development — Access to post harvest facilities, storage and

distribution/transport facilities of existing government agencies shall be
facilitated by the Department of Environment and Natural Resources, local
government units, and the Department of Agriculture.


f) Quality Assurance To ensure health and proper trading, the Department of
trade and Industry, Department of Science and Technology, and PhilFIDA,
respectively, shall establish and enforce standards in grading, sampling and
inspection, tests and analysis, specifications, nomenclature, units of
measurement, packaging, preservation, conservation or transportation of
Philippine abaca products and by-products; and

8) Philippine Abaca Information Center — The Department of Trade and Industry
in coordination with Local Government Units shall establish a Philippine Abaca

Information Center in areas where they are abundant.

SECTION 7. Philippine Abaca Development Fund. — To provide for the funding
requirements for the propagation, production, processing, marketing, promotion and
distribution of Philippine abaca, there is hereby created a Philippine Abaca
Development Fund (PADF), with an initial amount of Five Hundred Million Pesos (Php
500,000,000.00) upon the approval of this Act and every year thereafter, to be
provided by the Department of Budget and Management in the PhilFIDA's budget
This is in addition to PhiIFIDA's existing allocation under the General Appropriations
Act for the development of other fibers and its administrative, regulatory and
operational expenses. Of this amount, Fifty Million Pesos (Php 50,000,000.00) shall
be allocated for the Philippine Abaca Research Center, Visayas State University in
Baybay, Leyte, for the abaca research and development and extension program.

For the succeeding years, for the next nine (9) years from the approval of this Act, a
minimum amount of not less than Five Hundred Million Pesos (Php 500,000,000.00)
annually shall be allocated for the development and sustainability of the Abaca
Industry. The requirements of cooperating agencies shall be incorporated in their
respective budget from the General Appropriations fund.

SECTION 8. The Council Secretariat. — The Council Secretariat shall be headed by
the Executive Director of the PhilFIDA. The Secretariat and technical staff shall be
detailed from their existing personnel without prejudice to the designation by the
Council of such additional staff members as it may deem necessary for the proper
discharge of its function and responsibilities.

SECTION 9. Implementing Rules and Regulations. — The Philippine Abaca industry
Development Coordinating Council shall formulate and prescribe the necessary
implementing rules and regulations to carry out the provisions of this Act.


SECTION 10. Repealing Clause. — All laws, decrees, executive orders and rules and

regulations contrary to or inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SECTION 11. Separability Clause. — If any provision of this Act is held invalid or

unconstitutional, the same shall not affect the validity and effectivity of the other
provisions hereof.

SECTION 12. Effectivity Clause. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in two (2) newspapers of general circulation.

Approved,