105 OG No. 1, 4 (Jan. 5, 2009); Mla. Times, Nov. 13, 2008
WHEREAS, there are global
clouds on the horizon that are driving up the price of oil and food,
particularly rice;
WHEREAS, the
issue of rice management is a global concern that this Administration
has seen coming, and it has worked to head off for some time
now;
WHEREAS, this
Administration’s response to the global rice issue is based on ensuring
the supply of rice, making sure that distribution of rice gets to the
people who need it most, efficiently and cost-effectively, and being
vigilant against unscrupulous vendors, who divert subsidized rice and
sell it as commercial rice.
NOW, THEREFORE,
I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the
Philippines, by virtue of the power vested in me by law, do hereby
order:
SECTION 1. For a period to
be recommended by the Department of Agriculture (DA), but in no case
less than two years from the effectivity of this Executive Order, large
corporations shall be encouraged to provide the rice requirements of
their respective employees either by engaging in the production of rice
as hereafter provided, or by importing rice to meet the
requirements.
SECTION 2. For
purposes of this Executive Order, large corporations shall pertain to
corporations duly organized and existing under Philippine laws that
have five hundred (500) employees or more, provided that, said
corporations have reported profit in the last four years before this
Executive Order, and they can engage in the production or importation
of the rice requirements of their employees without substantially
affecting their financial viability.
The National
Food Authority (NFA) is hereby ordered to generate a list of the large
corporations, as defined herein.
SECTION
3. Large corporations with existing landholdings determined
to be suitable for rice production by the DA that decide to engage in
said production shall be encouraged to do so, within a period to be
determined by the DA.
Large corporations without
landholdings for rice production that decide to engage in rice
production, pursuant to this Executive Order, may engage in rice
production and may lease public agricultural lands or idle agricultural
lands, subject to the agreement of the landowner
thereof.
Large corporations that decide to import
rice shall signify their intention to do so with the NFA and shall be
governed in such importation by law.
For purposes of
this Section, large corporations may register with the NFA at any time
during the effectivity of this Executive
Order.
SECTION 4. Rice
importations pursuant to this Executive Order shall be coursed through
the NFA and shall be eligible for fiscal privileges, within the
authority of the NFA to provide. However, the NFA may charge reasonable
fees for services rendered for such
importation.
SECTION 5. Any rice
production, pursuant to this Executive Order, which is in excess of the
consumption requirements of the employees of a subject large
corporation, may be sold in the local
markets.
SECTION 6. The DA, upon
consultation with the Department of Agrarian Reform, the Department of
Environment and Natural Resources, the Board of Investments, and the
Department of Finance, shall develop a package of fiscal or non-fiscal
incentives, as may be allowed by law, for the effective implementation
of this Executive Order.
SECTION
7. Large corporations may enter into any agreement or form
associations for the purpose of engaging in rice production pursuant to
this Executive Order.
SECTION 8.
The DA shall formulate and issue Implementing Rules and Regulations
(IRR) of this Executive Order in consultation with concerned government
agencies and the private sector.
SECTION
9. Moral suasion and not compulsion shall be applied to the
large corporations in carrying out the purposes of this Executive
Order.
SECTION 10. Executive
Order No. 721 is hereby amended and superseded by this Executive
Order.
SECTION 11. This Executive
Order shall take effect immediately after publication in a newspaper of
general circulation.
Done in the City of Manila this
3rd day of November, in the year of our Lord, Two Thousand and
Eight.
(Sgd.)
GLORIA M. ARROYO
By the
President:
(Sgd.) EDUARDO R.
ERMITAExecutive
Secretary