Agricultural Value Chain Price Act

Senais Office of the emmittrp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session FEB 18 A11:19 SENA 864 RECEIVED 8: S.B. No. - Introduced by SENATOR IMEE R. MARCOS AN ACT STABILIZING PRICES ACROSS THE AGRICULTURAL VALUE CHAIN, PROVIDING PENALTIES THEREFOR, AND FOR OTHER PURPOSES EXPLANATORY NOTE The current setup of food markets in the Philippines is characterized by a mix of farmgate, biyahero, wholesale, and retail operations that often lack clear delineations. Intermediaries buy produce from farmers, which they subsequently sell in a non- standardized and largely unregulated manner. This results in inefficiencies such as low profit margins for farmers and fisher folk, high transaction costs, inconsistent pricing, and increased food prices for consumers. To date, the concept of pricing in the farmgate, biyahero, and wholesale operations has not been well-defined nor regulated, leading to a lack of transparency and accountability, making it difficult to regulate prices across the value chain. The urgent need to address the country's food security issues through the systematic regulation of its food distribution process has long been evident. Strategic frameworks such as the Philippine Food Chain Logistics Masterplan (PFCLM) 2023-2033, the Fisheries Modernization and Industrialization Plan 2021-2030, and the Three-Year Food Logistics Action Agenda 2023-2026 emphasize the governments commitment to implementing effective, modernized, and sustainable nationwide food chain logistics systems to promote economic growth while guaranteeing food accessibility, availability, and affordability for every Filipino. This bill aims to regulate pricing across the agricultural value chain by giving the Department of Agriculture additional powers to set a suggested farmgate price and a suggested wholesale price similar to the existing suggested retail price system. Through

this system, farmers will be guaranteed fair pricing of their produce while controlling the charges placed on top by middlemen. The bill also mandates the Department of Agriculture to establish and maintain a digital Agriculture Data Dashboard that provides a clear, real-time view of the country's food supply, crop production, imports, and prices, empowering farmers, consumers, and policymakers to make informed decisions. The dashboard will track crop yields, planting and harvest schedules, import volumes, and farmgate-to-retail prices. By consolidating this information, the government can import only when necessary, reduce waste, stabilize prices, and strengthen local production. In view of the foregoing, the passage of this bill is earnestly sought. IMEE R. MARCOS

Senati Offite of the er Marp TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES FEB 18 A11 :19 First Regular Session SENATE 1864 S.B. No. _ RECEIVED BY Introduced by SENATOR IMEE R. MARCOS AN ACT STABILIZING PRICES ACROSS THE AGRICULTURAL VALUE CHAIN, PROVIDING PENALTIES 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 referred to as the "Agricultural Value

Chain Price Act."

Sec. 2. Definition of Terms. - For purposes of this Act, the following shall be defined

as: a. "Agricultural Commodities" shall include the following: rice, corn, fresh fish and other marine products, fresh pork, beef and poultry meat, fresh eggs, fresh milk, fresh vegetables, fresh fruit, onions, garlic, root crops, coffee, sugar, and cooking oil; b. "Farmgate Price" shall refer to the price received by the farmers or fisherfolk at the point of first sale, excluding transport, storage, processing, and retail costs; c. "Person" shall mean a natural person or a juridical person; d. "Prevailing Price" shall refer to the average price at which the agricultural commodity has been sold in a given area; e. "Price Floor" shall refer to the minimum price at which the agricultural commodity may be bought at the farmgate or wholesale level; and f. "Value Chain" shall refer to the sequence of actors and activities from production to retail, including producers, consolidators, traders, wholesalers, distributors, and retailers.

Sec. 3. Price Floor. - The President, upon the recommendation of the Department

of Agriculture (DA), may impose a price floor on any agricultural commodity at the farmgate and/or wholesale level if any of the following conditions so warrants: a. The prevalence or widespread acts of illegal price manipulation; b. The impendency, existence, or effect of any event that causes artificial and unreasonable decrease in the price of the basic agricultural commodity; and c. Whenever the farm gate price of any basic agricultural commodity has decreased to unreasonable levels.

Sec. 4. Determination of Price Floor. - The following factors may be taken into

consideration in determining the reasonable price floor: a. The prevailing price of the agricultural commodity under consideration; b. The supply available in the market; c. The cost of production including but not limited to: i. Any change in the cost of inputs in the production of the basic agricultural commodity, such as fertilizer and fuel; ii. Any change in the cost of labor brought about by a change in the minimum wage; and ill. Any increase in the cost of transporting inputs in the production of the basic agricultural commodity, such as fertilizer and fuel; d. Such other factors or conditions which will aid in arriving at a just and reasonable price floor.

Sec. 5. Illegal Acts of Price Manipulation. - Without prejudice to the provisions of

existing laws on goods not covered by this Act, it shall be unlawful for any person habitually engaged in the wholesale, transport, distribution, sale or other methods of disposition of goods to engage in the following acts of price manipulation of the farmgate and/or wholesale price of any basic agricultural commodity: a. Purchase of any agricultural commodity at the farmgate and/or wholesale level below the established price floor; b. Coordinated pricing practices that distort farmgate and/or wholesale prices; c. Abuse of market power by dominant intermediaries; and d. Digital or platform-based price manipulation.

Sec. 6. Powers and Responsibilities of the Department of Agriculture. - To carry out

the intents and purposes of this Act, the Secretary of the DA shall have the following additional powers and responsibilities:

a. He shall, with the approval of the President, promulgate rules, regulations, and procedures for the implementation of this Act; b. He shall develop, promulgate and implement programs, projects or measures to promote productivity in all basic agricultural commodities under his agency's jurisdiction; c. He shall carry out, implement and enforce the policies and decisions made under this Act; d. He shall establish a digital analytics dashboard for agricultural products across the value chain, containing real time information on prices across the value chain of all agricultural products; e. He shall promote and facilitate the regulation of procurement, storage, marketing and distribution of agricultural commodities to ensure fair prices in the agricultural sector; f. He shall issue suggested reasonable farmgate and wholesale prices of agricultural commodities for the information and guidance of producers, manufacturers, traders, dealers, sellers, retailers, and consumers; g. He shall cause the immediate dissemination of any mandated price floor for any agricultural commodity through publication in a newspaper of general circulation in the area affected, and through broadcast by radio, television, social media and other similar platforms. He may also cause the information to be disseminated through posting in public markets, supermarkets or other public places; h. He may, upon approval of the President, and subject to existing laws, rules and regulations on bidding, enter into any agreement with any local producer, for the procurement of supplies or stocks of any basic agricultural commodity for purposes of buffer stocking: Provided, That, he may order their immediate sale; i. He may, subject to existing laws, rules and regulations on bidding, enter into any agreement with owners or operators of warehouses or storage houses or with owners, operators or franchise holders of vehicles or public utilities for the storage, transport, or distribution of any basic necessity or prime commodity; j. He may conduct investigations of any violation of this Act and, after due notice and hearing, impose administrative fines in such amount as he may deem reasonable which shall in no case be less than Five hundred thousand pesos (P500,000) nor more than Ten million pesos (P10,000,000). In the imposition of administrative fines, the following factors shall be taken into consideration: i. The number of violations committed. Provided that, respondents who were previously been found to have violated any of the provisions of this Act shall be imposed a higher fine; and

ii. Such other considerations as may be deemed necessary to carry out the provisions of this Act; k. He may require the attendance and testimony of witnesses or the production of goods, objects, books, papers, documents, contracts, records, financial statements, accounts, agreements and such other evidences material in the determination of any violation of this Act; I. Without prejudice to the power to issue temporary closure or temporary restraining order for a period which shall not be more than ten (10) days, he may, after due notice and hearing issue cease and desist orders, reprimand, censure, suspend, revoke or cancel any permit, license, authority or registration issued by his office, or order the permanent closure of any establishment violating the provisions of this Act; m. He may initiate summary proceedings to cause the seizure by the Government of agricultural commodities, subject of a violation of this Act, and order the sale to the public, at a reasonable price, whenever the nature of or the demand for such goods so requires. Provided that, pending litigation, the proceeds of the sale shall be held in trust or escrow by the DA. Provided further that, should the owner of the agricultural commodity seized and sold be found not liable for the violation which was the basis of the seizure, the proceeds from their sale shall be paid to him, otherwise, they shall accrue to the general fund of the Government. Provided finally that, the head of the implementing agency shall cause the broadcast in radio or television and the publication in at least two (2) newspapers of general circulation of the fact of sale or disposition of such seized goods, at least three (3) days before the date of such sale or disposition; n. He may initiate action and cause the prosecution of violators of this Act before the proper court of law; o. He may deputize and enlist the assistance of any government official or agency in carrying out the provisions of this Act; p. He shall establish linkages and coordinate with non-government or private organizations in the affected area to assist in the monitoring and implementation of price control therein; and q. Such other functions, as may be necessary, to effectively implement this Act.

Sec. 7. Buffer Fund for Implementation of Price Floor. - The DA, through either the

National Food Authority or the Food Terminal, Inc., may directly procure, purchase, or stockpile any basic agricultural commodity from farmers and fisherfolks to impose the price floor when the prevailing prices fall below production cost. For this purpose, a buffer fund shall be allocated in the annual appropriation of the DA.

Sec. 8. Digital Dashboard. - The DA is hereby mandated to establish and maintain

a digital dashboard containing real time province-level information in prices across the value chain, from farmgate, transport, wholesale to retail level of major agricultural products. The dashboard should also contain information in crop yield, planting and harvest schedule, local supply, and import volume of major agricultural crops.

Sec. 9. Agricultural Identification System. - The identification system herein referred

to as the "Agricultural Identification System" is hereby established as an economic tool towards the effective implementation of the profiling system in the agricultural sector. Every producer, wholesaler and trader of basic agricultural commodities is mandated to have a non-transferable Identification Card to be named and known as "Agri ID" that shall have a validity of five (5) years. The Agri ID shall be made of tamper proof security material. It shall have on its face the imprinted photograph, name, birthdate, date of issue, signature of the holder, a corresponding serial number and such other necessary data, as may be deemed necessary.

Sec. 10. Registration. - Every producer, wholesaler and trader of basic agricultural

commodities shall, within one (1) year after the promulgation of the implementing rules and regulations of this Act, be mandated to apply for registration and issuance of the Agri ID at the offices of DA nationwide. Existing members of the Registry System for Basic Sectors in Agriculture (RSBSA) are deemed registered to the Agricultural Identification System, subject to the validation of the DA.

Sec. 11. Functional Uses of the Agri ID. - The Agri ID shall be presented and

honored in transactions requiring the identity, status, and other personal circumstances such as but not limited to the following: 1. All transactions with the government; 2. Banking transactions with Land Bank of the Philippines; 3. Availment of benefits or privileges given by the government to landowner/farmer and agricultural tenant; 4. Filing of applications for services and benefits offered by agencies of the government pertaining to the agricultural sector; and/or 5. Proof of Identity.

Sec. 12. Penalty for Violation of Price Floor. - Any person who violates Section 5 of

this Act shall suffer the penalty of imprisonment for a period of not less than one (1) year nor more than ten (10) years, or a fine of not less than fifty thousand pesos

(P50,000) nor more than ten million pesos (P10,000,000), or both, at the discretion of the court.

Sec. 13. Violation by Juridical Persons. - Whenever any violation of the provisions

of this Act is committed by a juridical person, its officials or employees, or in case of a foreign corporation or association, its agent or representative in the Philippines who are responsible for the violation shall be held liable therefor.

Sec. 14. Violation by Aliens. - In case of aliens, in addition to the penalty provided

in this Act, the offender shall, upon conviction and after service of sentence, be immediately deported without need of any further proceedings.

Sec. 15. Violation by Government Officials or Employees. - Any public official or

employee who, by reason of his office, with or without consideration, conspires in the commission or knowingly conceals violations of any of the provisions of this Act, shall likewise, be principally responsible for the violation and shall suffer the additional penalty of permanent disqualification to hold public office.

Sec. 16. Criminal Penalties Without Prejudice to Administrative Sanctions. - The

foregoing criminal penalties shall be without prejudice to the administrative sanctions which the implementing agency may impose under this Act or under any other law.

Sec. 17. Relation of the Act to Other Laws, Presidential Issuances. - Nothing in this

Act shall be construed as removing or diminishing the jurisdiction of any agency of Government on certain goods or products conferred by other laws or presidential issuances.

Sec. 18. Appropriations. - The amount necessary to implement this Act shall be

included in the annual General Appropriations Act (GAA). Thereafter, such funds as may be included in the be necessary for the continued implementation of this Act shall succeeding annual GAA.

Sec. 19. Implementing Rules and Regulations. - The DA shall promulgate the

necessary implementing rules and regulations within one hundred twenty (120) days after the effectivity of this Act.

Sec. 20. Separability Clause. - If, for any reason, any part or provision of this Act is

declared invalid or unconstitutional, the remaining parts or provisions not affected thereby shall remain in full force and effect.

Sec. 21. Repealing Clause. - All laws, decrees, executive orders, rules and

regulations or other issuances or parts thereof contrary to or inconsistent with the provisions of this Act are hereby repealed, amended, or modified accordingly.

Sec. 22. Effectivity. - This Act shall take effect fifteen (15) days after its complete

publication in the Official Gazette and in at least two (2) newspapers of general circulation. Approved,