Section 6Sec./Art. 6

Powers of the DA on Rice Price Stabilization and Supply Regulation. - The DA Secretary, upon recommendation of the National Price Coordinating Council (NPCC), shall declarer a food security emergency on rice due to supply shortage or extraordinary increase in prices.

The NPCC shall devise a formula for determining the existence of a rice supply shortage or an extraordinary increase in rice prices. When such conditions occur, the DA may:

(a) Sell existing NFA rice buffer stock in areas where there is rice supply shortage or an extraordinary increase in rice prices: Provided, That notwithstanding exiting laws, rules and regulations, the sale shall be made only to:

(1) Government agencies or entities such as: the Department of Social Welfare and Development, Office of Civil Defense-National Disaster Risk Reduction and Management Council, and LGUs; and

(2) The public through KADIWA outlets;

(b) Replenish the used NFA rice buffer stock with locally produced rice from farmers or farmers cooperatives and associations; or

(c) Import rice when the available supply of locally produced rice is inadequate. The DA Secretary is authorized to designate the importing entity within the DA, with the exception of the NFA: Provided, That the designated importing entity shall import rice at the least cost available among government-to-government options, which shall include direct contracts between the Philippine govenrment and a foreign government, including instrumentalities and State-owned enterprises of such foreign government.

The DA shall maintain a buffer fund for food security emergencies on rice. For this purpose, the amount of Five billion pesos (P5,000,000,000.00) from any current unutilized portion of the DA budget shall not revert to the National Treasury but shall instead be credited to the buffer fund: Provided, That any excess in the annual tariff collection from the importation of rice not exceeding Two billion pesos (P2,000,000,000.00) shall be credited to the buffer fund: Provided, further, That the proceeds of the sale under paragraph (a) of this section shall revert to the DA buffer fund."