FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
1 
S E N A T E  
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INTRODUCED BY HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
The National Food Authority 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. Thus serious 
policy reorientation and institutional reforms geared toward liberalizing the importation of rice 
and improving rice buffer stock administration has long been overdue. 
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. 
Rationalizing the NFA will result in a food security program that is more focused, cost- 
effective and transparent. The importance of taking the first step toward urgent and necessary 
reforms needed to revive our rice economy simply cannot be overstated. 
In view of the foregoing, urgent approval of this bill is earnestly requested. 
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FOURTEENTH CONGRESS OF THE 
1 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
) 
8 SEP 1 L; ,!’3 :i:: 
INTRODUCED BY HONORABLE MAR ROXAS 
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 assem bled: 
CHAPTER 1 
GENERAL 
PROVISIONS 
SECTION 1. Short Title. - This Act shall be known as the ’National Food Authority 
Rationalization Act of2008.’” 
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 O&.ectives, - 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: 
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a. Ensure available adequate and accessible supply of rice and other foodgrains 
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b. Promote regulation aimed at enhancing competitiveness, transparency and 
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c. Encourage private sector participation in the importation of rice and in 
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production and post-harvest facilities; 
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during lean periods and in times of calamity and emergency; 
responsibility in the foodgrains marketing industry; and 
SEC. 3. Reorientation of the National Food Authoxfw - The functions of the NFA 
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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. 4. BderStock 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 the volume of rice procurement shall not be more than the 
strategic 30-day rice buffer stock requirement of the country. 
SEC. 5. Otherpowers andhetiom. -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; 
To determine and allocate import quotas among private sector entities and 
farmer organizations licensed to engage in rice importation; 
b. 
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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 andlor their 
by-productdend-products in different parts of the country; and 
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 remmable means. 
d. 
SEC. 6. Transfer of Mandate. - 'i'he following regulatory and developmental functions 
of the NFA are hereinafter transferred to i he following: 
a. 
b. 
C. 
d. 
e. 
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; 
The stabilization of prices of rice, corn and other foodgrains at the farmgate 
level to the Department of Agriculture; 
The stabilization of supply an0 prices of other foodgrains and other basic 
food items at the consumer level to the National Price Coordinating 
Council; 
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. 
The registration, licensing, and supervision of persons, natural or juridical, 
who shall engage or are engaged in the business of providing goods and 
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services in support of the different activities involved in the processing, 
transporting, marketing, and trading of foodgrains and their substitutes 
and/or their by-produdend-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: 
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 Postharvest Research and Extension. 
f. 
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. Transirozy Providons. -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, 
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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 Regdations. - 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. Separabiliv 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. Effecrivify 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, 
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