Philippine Abaca Industry Development Act

Sciate Difice of the s. actacy TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES 25 SEP 15 P3:44 First Regular Session SENATE S.B. No. 1387 RECEIVED BY: Introduced by SENATOR IMEE R. MARCOS AN ACT INSTITUTIONALIZING THE PHILIPPINE ABACA INDUSTRY DEVELOPMENT PROGRAM, PROVIDING FUNDS THEREFOR, AND FOR OTHER PURPOSES EXPLANATORY NOTE Article XII, Section 1 of the 1987 Constitution provides that the State shall promote the industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, which are competitive in both domestic and foreign markets. Abaca, internationally known as Manila hemp, is endemic to the Philippines. According to the Philippine Fiber Industry Development Authority (PhilFiDA), the Philippines dominates the global abaca trade as the country supplies about 86% percent of the world's abaca fiber requirements, as of 2019. Exports of abaca fiber and manufactures generated an average of USD 119 million per year in the last ten years (2010-2019). Some USD 100.4 million came from abaca manufactures such as pulp, cordage, fabrics/yarns and fibercrafts. The remaining USD 18.6 million was from raw fiber exports. Aside from the industry's substantial contributions to the country's economy, the Philippine abaca also plays a vital role in the growing global advocacy for environmental protection and forest conservation. Thus, the Philippine abaca continues to be one of the priority agricultural commodities of the Department of Agriculture due to its various economic and ecological advantages. In 2022, R.A. No. 11700 was enacted into law which declared the province of Catanduanes as the "Abaca Capital of the Philippines" since it is the country's biggest producer of abaca and it made the Philippines world-renowned in the fiber industry for its "Manila Hemp".

Given the abovementioned, this proposed measure seeks to support the steady and sustainable growth of the industry by creating the Philippine Abaca Industry Development Program, a ten(10)-year program consisting of plans, projects, programs and policies for the scientific propagation, processing, utilization and expansion of trade of Philippine abaca. The framework shall also include planting site identification, production support and extension, market promotion, infrastructure development, quality assurance and the establishment of the Philippine Abaca Information Center. Thus, the immediate passage of this bill is earnestly sought. Imee h. Marca MEER. MARCOS"

Senate Mad office of the set relarp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES 25 SEP 15 P 3:44 First Regular Session SENATE RECEIVED BY. S.B. No. 138*7 Introduced by SENATOR IMEE R. MARCOS AN ACT INSTITUTIONALIZING 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 Act".

SEC. 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.

SEC. 3. Creation of the Philippine Abaca Industry Development Coordinating

Council. - 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 (DA) and charged with the main function of coordinating the activities of various government 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.

SEC. 4. Composition of the PAIDCC. - The PAIDCC shall be composed of the

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

b. The Executive Director of Philippine Fiber Industry Development Authority (PhilFiDA) as the Head of the Council Secretariat; c. Head of the National Abaca Research Center; d. Secretary of the Department of Environment and Natural Resources (DENR); e. Secretary of the Department of Agrarian Reform (DAR); f. Secretary of the Department of Science and Technology (DOST); g. 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. Two (2) representative from Abaca Farmers'/Producers'/Processors' Associations; and k. Representative from non-governmental organizations. 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.

SEC. 5. Philippine Abaca Industry Development Program (PAIDP). - There is

hereby created the Philippine Abaca Industry Development Program (PAIDP), hereinafter referred to as the "Program". The Program shall be a ten (10)-year framework for development, to be validated and updated annually. Such framework shall serve as a 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. Provided that, in creating the Program, the Philippine Abaca Industry Roadmap 2021-2025 shall be taken into consideration. The framework shall also provide for the following: a. Site Identification - The DENR in coordination with the DA, DAR and local government units, shall identify the broad areas suitable for the planning and propagation of Philippine abaca within six (6) months after the effectivity of this Act. b. Scientific Propagation and Development - The DENR and DOST 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 the adoption and upgrading of post-harvest technology. c. Production Support and Extension - The DENR, DA, DTI and DOST, in coordination with the local government units, non-governmental organizations, Technical Education and Skills Development Authority

(TESDA), Cooperative Development Authority (CDA), state universities and colleges, and other relevant government agencies, shall establish programs which promote and provide adequate training on adapting technologies to individuals engaged in the propagation, production, processing, marketing and distribution of abaca and Philippine 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 DTI, in coordination with Private Industry Associations, shall link up 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 international 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 DENR, DA and the local government units. f. Quality Assurance - To ensure health and proper trading, the DTI and DOST, 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. g. Philippine Abaca Information Center - The DTI, in coordination with local government units, shall establish a Philippine Abaca Information Center in areas where abacas are abundant.

SEC. 6. Philippine Abaca Industry 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 Industry Development Fund (PADF), with an initial amount of Five Hundred Million Pesos (Php 500,000,000.00) upon approval of this Act and every year thereafter, to be provided by the Department of Budget and Management (DBM) in the PhilFiDA's budget. This is in addition to PhilFiDA'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, development and extension program

SEC. 7. 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 functions and responsibilities.

SEC. 8. Implementing Rules and Regulations. - Within ninety (90) days from

the effectivity of this Act, the Council shall formulate and prescribe the necessary rules and regulations for its implementation.

SEC. 9. Repealing Clause. - Any law, presidential decree or issuance, executive

order, letter of instruction, administrative order, proclamation, charter, rule or regulation and/or parts thereof contrary to or inconsistent with the provisions of this Act is hereby repealed, modified or amended accordingly.

SEC. 10. Separability Clause. - If for any reason, any section or provision of

this Act is declared unconstitutional or invalid, other sections or provisions which are not affected thereby shall continue to be in full force and effect.

SEC. 11. Effectivity Clause. - This Act shall take effect fifteen (15) days

following its publication in the Official Gazette or in two (2) newspapers of general circulation. Approved,