Rice Importation (English)

Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila

Fourteenth Congress
First Regular Session

HOUSE BILL NO. _______

_____________________________________________________________________

Introduced by Honorable Eduardo Nonato N. Joson
_____________________________________________________________________

EXPLANATORY NOTE

This bill seeks to devolve rice importation by the National Food Authority (NFA) to the private sector.

The NFA, under Presidential Decree No. 4 as amended by Presidential Decree No. 1770, has the power to import or cause the importation of food products/commodities, and/or raw materials, equipment and facilities needed in the manufacture/processing of food commodities. In view of the population’s great demand for rice, and the inadequate production of rice growers, importation of this commodity has increased substantially. While the NFA, by itself, has undertaken rice importation, it has also allowed farmers, cooperatives and other players in the grain industry to import rice. However, the burden of importing rice remains principally with the NFA. As a result, the NFA debt stock has risen.

The bill proposes to reduce if not liquidate the debt stock and let the private sector come in with their own sources of funding. Government guarantees will also be a thing of the past. While affordability may be a problem in the short term, the price of our rice must be market based if we are to spur productivity. Due consideration shall also be given to ensure that sufficient safety nets are implemented, such as a voucher system for the poorest of the poor or for our soldiers and police forces, to address issues of affordability. With the removal of NFA monopoly on importation, rice will no longer be considered as a political commodity, without sacrificing the buffer stock requirement for a stable rice supply that will come from local palay procurement. A certain percentage of the total rice importation may also be allotted for NFA buffer stock use.

Hence, approval of this bill is earnestly sought.


EDUARDO NONATO N. JOSON






Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Manila

Fourteenth Congress
First Regular Session

HOUSE BILL NO. _______

_____________________________________________________________________

Introduced by Honorable Eduardo Nonato N. Joson
____________________________________________________________________

AN ACT
AMENDING SECTION 7(C) OF PRESIDENTIAL DECREE 1770 IN ORDER TO PROVIDE FOR THE PRIVATIZATION OF RICE IMPORTATION.

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

SECTION. 1. Title – This Act shall be known as “The Rice Importation Privatization Act”.

SECTION 2. Privatization of rice importation – Section 7(c) of Presidential Decree 1770 is hereby amended, to read as follows:
“To import/export or cause the importation/exportation of food products/commodities, and/or raw materials, equipment and facilities needed in the manufacture/processing of food commodities as may be determined by the Council, and as approved by the President of the Philippines; WITH EXCEPTION TO THE IMPORTATION OF RICE, WHICH SHALL HENCEFORTH BE DEVOLVED TO THE PRIVATE SECTOR. ..
xxx”

SECTION 3. Implementing Rules and Regulations - The National Food Authority (NFA) shall promulgate the rules and regulations for the effective implementation of this Act within sixty (60) days from approval hereof.

SECTION 4. Separability Clause – If any part, section or provision of this Act is held invalid or unconstitutional, other provisions not affected thereby shall remain in full force and effect.

SECTION 5. Repealing Clause – All laws, decrees, orders, rules and regulations or other issuances inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

SECTION 6. Effectivity - This act shall take effect fifteen (15) days after its publication in at least two (2) newspapers of general circulation.

Approved,