FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
Senate Bill No. 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
This bill seeks to end the monopoly of the National Food Authority to 
import rice by giving the privilege to import rice to farmer organizations only. The 
latter are the most affected by such bringing in of rice from other countries and 
that the procurement funds of the NFA be utilized only to purchase locally 
produced palay or farmer imports for food security requirements of the country. 
Moreover, this bill likewise mandates BFA to use its funds to procure 
locally-produced palay from our farming community in order to further motivate 
the farmers to increase their productivity. 
The farming sector has always been at the receiving end of any rice 
importation as this tend to dampen or lower the price of palay resulting in no or 
lower income for our farmers. It is therefore an opporiunity to let importation be 
an advantage or an opportunity for them to earn additional income. 
Approval of this bill is earnestly requested. 


FOURTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
AUTHORIZING FARMER ORGANIZATIONS TO UNDERTAKE RICE 
IMPORTATIONS, PROVIDING FUND ASSISTANCE AND FOR OTHER 
PURPOSES 
Be it enacted by the Senate and House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Declaration of Policy- It is hereby declared the policy of the 
State: 
a. The State recognizes the need for our country to attain food security. To 
this end as long as we are still under quantitative restrictions, it shall authorize 
farmer organizations to be the sole importer of rice in the country and at the 
same time authorize the National Food Authority (NFA) to use its funds to 
purchase locally produced palay only. 
b. The State recognizes the need for farmer organizations to gain training 
and expertise in international trade in anticipation of the lifting of restrictions on 
importation of agricultural products under the World trade Organizations-General 
Agreement on Tariffs and Trade. 
c. The State believes that the funds of the NFA shall be used for our own 
farmers especially those that the need NFA service the most e.g. upland farmers, 
' areas of less trades, areas with less post harvest facilities, etc. provide significant 
impact to local farmers. 
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SECTION 2. Administration- The national government through the 
National Food Authority or an agency designated by the President of the 
Philippines shall: 
a. 
determine the volume to be imported and for this purpose, issue 
the implementing rules and conditions for the rice importation; 
b. 
give authority to import rice and transfer such authority to 
authorize farmer organizations only; 
fund allocated by NFA for its rice procurement shall be utilized in 
the purchase of locally produced palay and imported rice for the 
maintenance of its rice reserve requirements; 
determine the rice quality to be imported in consultation with 
importing farmers organization based on market requirements; 
and 
keep an inventory of rice and grain supplies for 90 days. 
C. 
d. 
e. 
SECTION 3. Determination of Authorized Farmer Organizations- Farmer 
Organizations shall be accredited and certified by the NFA and the Cooperative 
Development Authority based on a guideline to be issued for this purpose. 
The NFA will play a catalytic and supportive role recognizing the 
autonomy and independence of the internal affairs of the farmer organizations. 
For this purpose, farmer organizations shall refer to associations whose 
majority owners are palay farmers. 
SECTION 4. Monitoring- The Department of Agriculture shall oversee the 
national palay and rice situation to determine the amount of rice importation. 
SECTION 5. lmplemenfing Rules and Regulations- The NFA in 
consultation with concerned sectors shall issue the implementing rules and 
regulations within thirty (30) days from the effectivity of this Act. 
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SECTION 6. Repealing Clause.- Any provision of law, executive order, 
decree or rules of court, which may be inconsistent with the provisions of this Act 
are hereby repealed, amended or modified accordingly. 
SECTION 7. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in at least two (2) national 
newspapers of general circulation. 
Approved, 
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