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Section 1
Establishment of Floor Price of Palay
Section 1.
Establishment of Floor Price of Palay.
The Department of Agriculture (DA), upon consultation with the Steering Committee created under Section 2 hereof, shall determine, set, and adjust the floor price of palay to be purchased by the government based on the following considerations:
a. Cost of production;
b. Prevailing margins prices;
c. Reasonable margins for farmers;
d. Welfare of both farmers and consumers; and
e. Other relevant factors and conditions, such as:
i. Emergencies or calamities affecting the rice supply chain and palay production;
ii. Influx of import arrivals that could dampen farmgate price of palay;
iii. Sharp decline in global rice prices that may impact the estimated landed cost of rice; and
iv. Government's capacity to purchase palay at competitive prices and manage market intervention.
In establishing the floor price of palay, the DA ensure a fair return of investment to farmers on a regional level by recognizing regional variance in production costs, market conditions, and profit margin, to be reviewed and adjusted before the onset of cropping season or whenever necessary.
Section 2
Steering Committee
Section 2.
Steering Committee.
A Steering Committee is hereby created to assist the DA in establishing the floor price of palay and implementing this Order. The Committee shall be composed of the heads of the following agencies.
Chairperson
:
DA
Co-Chairperson
:
Department of the Interior and Local Government
Members
:
Department of Trade and Industry
Department of Social Welfare and Development;
Department of Agrarian Reform; and
National Food Authority (NFA)
The Committee may invite representatives from local government units (LGUs), farmer representatives, private sector groups, and civil society organizations as observers and/or resource persons to aid in the performance of the Committee's mandate.
The DA shall serve as the Secretariat of the Committee, and shall provide administrative and technical support to the Committee.
The Chairperson, Co-Chairperson, and members of the Committee may designate their respective alternates, with ranks not lower than Assistant Secretary or its equivalent, who are fully authorized to decide for or on their behalf.
The Committee shall regularly convene at least once every quarter or as often as may be deemed necessary by the Chairperson.
The Steering Committee may request the assistance of other government agencies and LGUs to provide timely assistance and cooperation to ensure the effective and efficient implementation of this Order.
Section 3
Temporary Storage of Palay in Public Facilities
Section 3.
Temporary Storage of Palay in Public Facilities.
In the absence or insufficiency of available and suitable warehouses form the proper storage of purchased palay, national government agencies (NGAs) and instrumentalities, including government-owned or -controlled corporations (GOCCs) and state universities and colleges (SUCs), and LGUs shall be authorized to use public facilities such as covered courts, multi-purpose storage sites, subject to existing laws, rules and regulations.
Such use shall be coordinated with the concerned LGUs and other relevant government agencies to ensure that the storage of palay does not impede the delivery of essential public services.
Section 4
Sanctions
Section 4.
Sanctions.
The purchase of palay by any NGA and LGU below the floor price and any violation of this Order shall be referred to the proper disciplining authority for administrative action, in accordance with relevant laws, rules and regulations.
Section 5
Implementing Guidelines
Section 5.
Implementing Guidelines.
Within five (5) days from the effectivity of this Order, the Steering Committee shall formulate the necessary guidelines for the full and effective implementation of this Order.
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The Implementing Guidelines shall include the proper utilization, maintenance, and security of temporary storage facilities to prevent post-harvest losses and ensure the protection and quality of stored palay, among others.
Section 6
Monitoring
Section 6.
Monitoring.
To ensure effective implementation of this Order, the Steering Committee, shall conduct regular monitoring of farmgate transactions to ensure that palay prices remain fair, stable, and beneficial to both farmers and consumers.
Section 7
Reporting
Section 7.
Reporting.
The Steering Committee shall submit to the President, through the Office of the Executive Secretary, quarterly reports on the status of compliance, implementation progress, and the impact on farmer incomes and rice supply stability.
Section 8
Funding
Section 8.
Funding.
The funding requirements for the initial implementation of this Order shall be charged against the existing appropriations of concerned agencies of the Steering Committee and such other funding sources as may be identified by the Department of Budget and Management, subject to relevant budgeting, accounting, and auditing laws, rules and regulations. Thereafter, the subsequent funding requirements for the continued implementation of this Order shall be included in the budget proposals of concerned agencies, subject to the usual budget preparation process.
Section 9
Transitory Clause
Section 9.
Transitory Clause.
Upon effectivity of this Order, and pending the issuance of the guidelines to be issued by the Steering Committee, the floor price of palay shall be based on the current regional floor price computation of the NFA.
Section 10
Separability
Section 10.
Separability.
If any or provision of this Order shall be held unconstitutional or invalid, the other provisions not affected thereby shall continue to be in full force and effect.
Section 11
Repeal
Section 11.
Repeal.
All orders, rules and regulations, and other issuances or parts thereof which are inconsistent with the provisions of this Order, are hereby repealed or modified accordingly.
Section 12
Effectivity
Section 12.
Effectivity.
This Order shall take effect immediately upon publication in the Official Gazette or in a newspaper of general circulation.
DONE, in the City of Manila, this 25th day of October, in the year of Our Lord, Two Thousand and Twenty-Five.
(Sgd.)
FERDINAND R. MARCOS, JR.
By the President:
(Sgd.)
LUCAS P. BERSAMIN
Executive Secretary