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Section 1.    Declaration of Policy. — It is hereby declared to be the national policy to encourage the more rapid expansion of agricultural production, and to increase farm productivity by making available to the farmers adequate fertilizers at reasonable prices. 

Sec. 2.    The government shall purchase fertilizers in the manner hereinafter provided, and shall sell the same to farmers in the manner hereinafter provided, according to the following schedule of prices:

Sulphate of ammonia    P70 per ton
    (synthetic crystalline)

Phosphate of ammonia    90 per ton

Superphosphate    60 per ton

Sulphate of potash    80 per ton

Muriate of potash    80 per ton

Provided, That mixed fertilizers shall be priced according to the cost herein provided for the various components of the mixture plus a reasonable charge for manufacturing: And provided, further, That the prices hereinabove provided shall be for fertilizers in standard six-ply paper bags, asphalt laminated, ex-warehouse Manila basis, the necessary transportation and handling expenses shall be added to the price for points outside Manila.cralaw

Sec. 3.    Only bona fide farmers shall be eligible to purchase fertilizers under this Act and they shall be allowed to purchase only those types and in the quantities which the field agents of the Bureau of Agricultural Extension shall certify jointly with the municipal agriculturist to be actually necessary for their own planting operations; the fertilizers acquired under this Act shall in no case be resold.cralaw

Sec. 4.    The ACCFA is hereby designated to administer the distribution of the fertilizers through the FACOMAS and in towns where there are no FACOMAS through the Bureau of Agricultural Extension: Provided, That said fertilizers shall be distributed among bona fide farmers in accordance with the rules and regulations promulgated by the ACCFA without any discrimination whatsoever and upon payment in cash to the ACCFA; that the ACCFA shall enter into joint arrangements with other government commodity corporations especially organized to help particular industries, such as the Abaca Corporation, the Philippine Sugar Institute, the Philippine Tobacco Administration, the Philippine Coconut Administration, and the National Rice and Corn Corporation, to have said corporations and farmers' cooperative marketing associations handle the distribution for bona fide farmers in their respective industries: Provided, further, That the ACCFA shall be responsible for delivering the fertilizers to the farmers at the fertilizing period appropriate to each crop and region: And provided, finally, That the farm corporations concerned, whether directly or through their respective procurement commodity corporations or marketing associations, shall file their order one hundred twenty days before the desired time for delivery, the procedures for filing such an order specifying their requirements in type, form, quality and quantity to be determined by the ACCFA.cralaw

Sec. 5.    The ACCFA shall determine before the beginning of each crop year, in consultation with the Bureau of Agricultural Extension, the various commodity corporations, and the various chambers of agriculture, the aggregate fertilizer requirements for the year and the monthly schedule of procurement and delivery.cralaw

Sec. 6.    The ACCFA shall procure the fertilizers in the quantities and types which are required at the lowest possible prices first from locally produced supplies and the balance from imports through public bidding to be conducted by a committee composed of the Secretary of Finance or his representative, as chairman, the Secretary of Agriculture and Natural Resources or his representative and a representative of the ACCFA, as members: Provided, That the Central Bank of the Philippines shall allocate the necessary dollars for the importation of said fertilizers. 

Sec. 7.    The representatives of the commodity corporations may demand at any time that a bidding be called by the committee herein created, for the purpose of assuring procurement and delivery of their respective fertilizer requirements on time.cralaw

Sec. 8.    Any person or official of the ACCFA who shall discriminate in favor of or against any person or persons in violation of section three hereof or who shall violate any provision of this Act shall be punished by a fine of two thousand pesos or imprisonment for one year, or both.cralaw

Sec. 9.    There is hereby appropriated for the purposes of this Act an amount of eighteen million pesos to be drawn every year and for a period of three years out of any funds in the National Treasury not otherwise appropriated.cralaw

Section 10.    This Act shall take effect upon its approval and for a period of three years from the date of its approval.cralaw

Approved: August 23, 1956

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