MEMO FOR : SKP

FROM : LEGIS-JVQ
RE : Anti-Rice or Corn Hoarding
DATE : September 12, 2018

Senate Bill No. 332

Title:
An Act Considering Rice or Corn Hoarding and Profiteering During or
on the Occasion of any Calamity or Emergency declared as such by the
President as Equivalent to Economic Sabotage, partly Amending for the
purpose Republic Act No. 7581, otherwise known as the Price Act, and
for Other Purposes

Author(s)
Senator Joseph Victor G. Ejercito

I. Nature of the Bill

The bill considers rice and corn hoarding, and profiteering

during any calamity or emergency as equivalent to economic
sabotage.

II. Problem, Situation, or “Evil” Sought to be Addressed

● The unwanted materialization and proliferation of illicit rice

traders and dealers;
● Inflation and rising of prices due to rice and corn hoarding;
● Hoarding activities of rice and corn mills.

III. How does it intend to achieve this?

● By amending Republic Act No. 7581 or the Price Act —

  Amending its Section 5 on what constitutes “Illegal
Acts of Price Manipulation” by defining “Economic
sabotage”;

 Amending its Section 5, identifying the implementing

agency concerned and the inventory levels of
manufacturers;

 Amending Section 15, and adding a proviso which

make acts of rice or corn hoarding and profiteering
punishable by imprisonment and fine.

IV. Salient Features of the Bill

● Illegal Acts

The definition of Hoarding includes the act of storing or

keeping of any basic necessity or prime commodity beyond
his or her normal inventory levels as determined by the
implementing agency concerned.

Prima Facie Evidence of Profiteering — when what is

offered for sale is adulterated, diluted or mixed with lower
quality in the case of rice or corn.

● Anti-Rice or Corn Hoarding and Profiteering Task Force:

There shall be an Anti-Rice or Corn Hoarding and

Profiteering Task Force in every province, city and
municipality tasked with monitoring the inventory level of all
rice or corn mills, warehouses and stock houses to determine
their respective monthly stocks of rice or corn.
 The Anti-Rice or Corn Hoarding and profiteering task force
shall be composed of:

a. The Local Chief Executive of the Local Government Unit

who shall act as the Chair;
b. One (1) representative from the Provincial/ City Field/
Branch Office of the implementing agency concerned;
c. One (1) representative from the local consumer’s
organization/group;
d. Local Chief of Police as members.

● Amendment on Section 15

Additional provisions on characterizing punishment and

penalties on rice or corn hoarding and profiteering:

- Punishable by imprisonment for a period of not less than ten

(10) years nor more than twenty (20) years and a fine of not
less than one hundred thousand pesos (P 100,000) nor more
than five million pesos (P 5,000,000)
- When the acts of rice or corn hoarding and profiteering are
committed during calamity, disaster or any emergency
declared as such by the President of the Republic of the
Philippines, it shall be considered as Economic Sabotage
and punishable by Reclusion Perpetua.

● Implementing Rules and Regulations

The implementing agency concerned shall promulgate the

pertinent rules and regulations within sixty (60) days from the
effectivity of this act.