Grant of Authority to the Secretary of Agriculture to Manage and Coordinate Rice Management Efforts

May 15, 2008

EXECUTIVE ORDER NO. 725

DIRECTING AND AUTHORIZING THE SECRETARY OF AGRICULTURE TO MANAGE AND COORDINATE ALL EFFORTS OF RELEVANT AGENCIES OF THE EXECUTIVE DEPARTMENT, GOVERNMENT FINANCIAL INSTITUTIONS AND GOVERNMENT OWNED AND CONTROLLED CORPORATIONS TO ADOPT MEASURES TO MEET THE CHALLENGE OF THE CURRENT WORLD RICE SUPPLY SHORTAGE

WHEREAS, there are global clouds on the horizon that are driving up the price of oil and food, particularly rice; CDESIA

WHEREAS, the first obligation and commitment of government is to put food on the table in the Philippines;

WHEREAS, the rise of agricultural prices is a global problem and all must work together to resolve it and to help prevent any global food crisis in the longer term; DEIHAa

WHEREAS, there is an urgent need to intensify efforts to carry out the aforementioned policy;

WHEREAS, there is a need to manage and coordinate relevant agencies of the Executive Department, government financial institutions and government owned and controlled corporations in the implementation of measures aimed at addressing challenges related to rice prices and supply;

NOW THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by the powers vested in me by law, do hereby order:

SECTION 1. Secretary of Agriculture. — The Secretary of Agriculture is hereby mandated to coordinate and oversee all government efforts on the issue of rice management. aSITDC

SECTION 2. Rice Management. — The response to the issue of rice management shall be based on three fundamental needs:

1. To ensure supply,

2. To make sure distribution of rice gets to the people who need it most, efficiently and cost-effectively; and

3. To be vigilant that unscrupulous traders do not price gouge and exploit the situation.

SECTION 3. Supply. — To ensure supply, the Secretary of Agriculture is hereby mandated to coordinate and oversee the following government efforts:

1. Reaching out to Thailand, Vietnam and others to increase the national security stock, and seek the advise of those with actual experience and specialization in the commodity and its free market; aEDCAH

2. Implementation of the Philippine Productivity Rice Master Plan, copy of which is hereto attached as Annex A, and which is hereby approved for immediate implementation;

3. Adoption and implementation by the Land Bank of the Philippines and other Government Financial Institutions (GFIs) such as but not limited to the Development Bank of the Philippines, the Government Owned and Controlled Corporations (GOCCs) such as but not limited to the People's Credit and Finance Corporation, the National Development Corporation and Livecor. To this end, the Land Bank and other GFIs shall adopt the necessary board resolutions authorizing the Secretary of Agriculture or his specifically designated representative to provide on their behalf credit facilities to qualified farmers and farmers' organizations, which credit facilities shall be used to increase and improve rice production;

4. Entering into a Memorandum of Agreement with the local government units, the GFIs, the countryside financial institutions and other private organizations in order to address the current rice supply shortage and to arrest the effects of increases in the price of oil-based inputs through a rationalized financing scheme that will be made available to the farmers and farmers' cooperatives for the purchase of inputs at the lowest possible cost. IHDCcT

SECTION 4. Distribution. — To make sure distribution of rice gets to the people who need it most, efficiently and cost-effectively, the Secretary of Agriculture is hereby mandated to coordinate and oversee the following, government efforts:

1. Distribution through churches and faith organizations;

2. Distribution through schools;

3. Distribution through the government's own network.

SECTION 5. Enforcement. — To be vigilant against unscrupulous traders who price gouge and exploit the situation, the Secretary of Agriculture shall be assisted by a Task Force on Rice Enforcement. Anyone caught robbing the people of rice shall be sanctioned to the full extent of the law. HADTEC

SECTION 6. Funding. — The relevant agencies of the Executive Department, GOCCs and GFIs shall share the costs of rice management, according to their respective mandates and roles, and/or as may be agreed among themselves.

SECTION 7. Effectivity. — This Order shall take effect immediately.

DONE in the City of Manila, this 15th day of May, in the year of Our Lord, Two Thousand and Eight.