A House leader on Monday called on the Senate to act swiftly on the proposed amendment to the Agri-Agra Law in the face of the possible shortage of rice and agricultural products due to recent typhoons.

House Agriculture Committee Chairman Abraham Mitra led the call for the passage of House Bill 6095 in the Senate, after its approval of the bill on third and final reading in the House.

The Agri-Agra Law or Presidential Decree aims to enhance the flow of credit to the agricultural sector.

"The recent developments have placed the government in a critical situation of explaining the possibility of rice shortage in the country and the price increase of other agricultural products such as vegetables, livestock and poultry supply," Mitra said.

HB 6095 seeks to amend the Agri-Agra Law or Presidential Degree 717, to address, among others, the lack of credit sources available for farmers.

Mitra said many farmers are discouraged to till their lands and grow crops due to lack of credit sources to depend on.

"Most of them are now seeking alternative income source by selling their farmlands to real estate owners and developers," Mitra said.

He said rapid changes in natural environment and structural defects in the agriculture sector are placing the state of food security in jeopardy.

"The law (PD 717) was not fully utilized by the farmers due to some provisions, which allowed the diversion of the 10 percent agrarian reform share to government securities. Most of the commercial banks used this share to purchase said securities, putting the farmers’ access to credit ineffective," Mitra said.

The bill mandates the Bangko Sentral ng Pilipinas to impose administrative sanctions and other penalties on the lending institutions for non-compliance with the provisions of the proposed act.

To support eligible fisheries activities, the measure provides and ensures viable credit facility to farmers, agrarian reform beneficiaries, tillers, tenant farmers, settlers, agricultural lessees, amortizing owners, owner-cultivators, farmers cooperatives, compact farmers, agro-industrial enterprises, corporate farmers, small farmers, and small fisher folk and their cooperatives.

The bill also provides a review mechanism after three years of implementation to allow the Department of Agrarian Reform, the Department of Agriculture and the BSP to assess whether the measure has achieved its goals.