CONGRESS OF THE PHILIPPINES)
16" Congress )
First Regular Session )

HOUSE OF REPRESENTATIVES
House Bill No.

INTRODUCED BY HONORABLE AGAPITO H. GUANLAO

EXPLANATORY NOTE

The current rice crisis brought about by Typhoon Yolanda and other calamities earlier
brought to the fore the review of government policy on food security and the role of the National
Food Authority, Rice being the national staple food and a political commodity deserves a
special policy consideration. There is a need to ensure the commodity's steady and adequate
production involving all the sectors in agriculture.

This measure envisions strengthened structures for the implementation of a food
security program and the determination of strategic food / rice reserve of the country.

The importance and significance of this measure is further emphasized by the onslaught
of natural and man-made calamities that resulted to shortfalls in production and the apparently
tightening global rice supply particularly those in control of the commodity's global trade.

Tasked with the mandate to stabilize the supply and price of rice, the National Food
Authority (NFA) buys palay more than its farmgate price and sell them at lower than the market
price. This resulted from great losses that translate into more burdens of subsidy for the
government, Today, NFA obligations reached about P150 billion composed of long and short
term debts and losses.

In view of these, the government in the last five years has been contemplating on
streamlining or privatizing certain operations of the NFA which are subject of many legislative
measures from the House of Representatives, but none were enacted into law.

This piece of legislation aims to strengthen and continue the operations of the NFA
through the implementation the following measures:

1, Provide a clean bill of health through mecahnisms that transfers liabilities to the

government and provide new funds therefor;

‘The provision of intial capitalization which shall be provided by law (GAA);

3. The government through the Department of Budget and Management shall
include in the President's Budget Proposal funds to be utilized for personal
services, interests and other maintenance and operating expenses to maintain its
function at ensuring its buffer stock of rice.

4 Provide for necessary structural changes that shall include the private sectors
concerned.

In view of the foregoing, the enactment of this piece of legislation is earnestly sought for.

AGAPITO H. GUAYLAO


CONGRESS OF THE PHILIPPINES)
16” Congress )
First Regular Session )

HOUSE OF REPRESENTATIVES
House Bill No. ae rd

INTRODUCED BY HONORABLE AGAPITO H. GUANLAO.

AN ACT

AMENDING PRESIDENTIAL DECREE NO. 1770 ENTITLED RECONSTITUTING THE
NATIONAL GRAINS AUTHORITY TO THE NATIONAL FOOD AUTHORITY AND PROVING
FUNDS THEREFOR

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

Section 1. SECTION 6, is hereby amended to read as follows:

Section 6. Composition of the National Food Authority Council. The
Council shall be composed of the following:

The Office of the President as Chairman
Secretary, Department of Agriculture as Vice Chairman
Secretary, Department of Finance
Secretary, Department Of Trade And Industry
Secretary, Deparment Of Budget Management
‘Administrator, National Food Authority
Governor, Central Bank of the Philippines
President, Land Bank of the Philippines
Representatives from the Private Sector:

(1) Farmers Organizations (3)

(2) Academic Community (1)

(3) Private Business Grains Sector (1)
(4) Consumers Sector (1)

Section 2, Section 7 is hereby inserted to read as follows:

Section 7. Additional Powers, Functions and Exemptions. In addition to the
powers, functions and exemptions of the Authority under P.D. No. 4, as
amended, the Authority shall have the following powers, functions and
exemptions:

“(j) | TO BUILD UP AND MAINTAIN A MINIMUM STRATEGIC RICE
RESERVE EQUIVALENT TO THIRTY (30) DAYS NATIONAL
CONSUMPTION AT EVERY GIVEN TIME OF THE YEAR AND
ABUFFER STOCK EQUIVALENT TO AT LEAST THIRTY (30)
DAYS BY JULY 1 OF EVERY YEAR.”


(i) | CONTROL ALL PROCESSES INVOLVED IN PROCUREMENT,
DISTRIBUTION AND PRICING OF RICE DURING TIMES OF
CALAMITIES AND DISASTERS, NATURAL OR MAN-MADE.

Section 3. Section 11 is hereby inserted to read as follows:

Section 11, ALL OUTSTANDING DEBTS AND LOSSES OF THE NATIONAL
FOOD AUTHORITY SHALL BE ABSORBEDBY THE NATIONAL
GOVERNMENT. THE DEPARTMENT OF FINANCE AND
DEPARTMENT OF BUDGET AND MANAGEMENT SHALL
FORMULATE THE GUIDELINES PURSUANT TO THIS
PROVISION.

Approved