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Executive Orders

Providing for Further Deregulation in the Production and Trading of Food Grains and Related Agricultural Inputs

Executive Order No. 1028

EXECUTIVE ORDER NO. 1028 May 31, 1985

PROVIDING FOR FURTHER DEREGULATION IN THE PRODUCTION AND TRADING OF FOOD GRAINS AND RELATED AGRICULTURAL INPUTS

WHEREAS, under the New Republic, national development shall be pursued with renewed dedication and greater determination through a more efficient, effective and economical government;

WHEREAS, it would be desirable, as a general policy, to encourage the participation of the private section the development of the country and to rely as much as feasible on the free interplay of competitive market forces in the production and trading of food grains and related agricultural inputs;

WHEREAS, for this purpose, it would also be desirable to liberalize the governmental regulatory framework in support of the above-stated national policy; and

WHEREAS, under Presidential Decree No. 1416, as amended, the President is empowered to undertake such organizational and related improvements as may be appropriate in the light of changing circumstances and new developments;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of powers vested in me...

SUMMARY OF EXECUTIVE ORDER NO. 1028

Policy on Food Grains and Agricultural Inputs (Section 1):
- The State aims to maintain adequate supply of food grains at satisfactory prices for farmers and consumers.
- This will be achieved primarily through the market mechanism and encouraging private enterprise participation in production and trading of food grains and related agricultural inputs like fertilizers, seeds, and pesticides.

Deregulation of Milled Rice Price (Section 2):
- The price of milled rice is deregulated and no longer subject to price controls, effective October 1, 1985.
- However, the National Food Authority (NFA) shall:
    - Procure palay from farmers at support prices to stabilize palay prices and maintain buffer stock levels.
    - Have exclusive authority to import rice when necessary and authorized by the President.

NFA's Stabilization Functions (Section 3):
- NFA's stabilization functions are limited to rice, corn, and wheat (if necessary).
- NFA shall transfer or divest its non-grain stabilization and trading activities, including:
    - Transfer Kadiwa and other non-grain operations to Food Terminal, Incorporated.
    - Transfer or divest Food Terminal, Incorporated operations, including Kadiwa, as a joint venture with the private sector or fully to the private sector.

Wheat Importation and Flour Distribution (Section 4):
- Importation of wheat and distribution of flour are open to private sector participation.
- NFA may import wheat and distribute flour under competitive conditions with the private sector to maintain reasonable flour prices.

Fertilizer Policy (Section 5):
- Open importation and distribution of fertilizer by private parties, including distributors and end-users, shall be fully implemented.
- All remaining fertilizer subsidies, direct or indirect, shall be removed as soon as possible to accelerate development of less expensive organic fertilizers and reduce food production costs.

Implementation Guidelines (Section 6):
- NFA shall issue guidelines for implementing Sections 2, 3, and 4.
- Fertilizer and Pesticide Authority shall issue guidelines for implementing Section 5.

Repealing Clause (Section 7):
- All laws, decrees, orders, proclamations, rules, and regulations inconsistent with this Executive Order are repealed or modified accordingly.

Effectivity (Section 8):
- This Executive Order takes effect immediately, except for Section 2 (deregulation of milled rice price), which takes effect on October 1, 1985.

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