WHEREAS, a nationwide food production program is being conducted by the government to secure sufficient supply of rice, corn and other staple food products;

WHEREAS, the program requires the employment of all our economic resources;

WHEREAS, one such resources is the sector composed of corporations and partnerships that have demonstrated high profit-making operations and have accounted for a major portion of the national employment;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution do hereby order that:

1. For a period of time to be recommended by the National Grains Authority, hereinafter referred to as the Authority, but in no case less than three years from the date of effectivity of this Decree, all domestic corporations and partnerships shall provide for the rice and corn requirements of their employees and the latters' immediate families in either of the following ways:
   
   
   1. By engaging in the production of rice and/or corn as hereinafter provided, or
      
   2. By importing such amounts of rice and/or corn to meet these requirements.
      
   
   
2. For the purposes of this Order, domestic corporations and partnerships shall refer to all corporations and partnerships organized and existing under Philippine laws, operating for profit, and with at least five hundred (500) employees, provided that said corporations and partnerships report earnings over the last four years that will allow them to engage in the production or importation of rice and/or corn for their employees' requirements without adversely affecting their financial viability.

The Authority shall issue such guidelines as will determine which corporations and partnerships are to be covered by this Order.

3. Those domestic corporations and partnerships with existing landholdings determined to be suitable for rice and/or corn production by the Authority, and who decide to engage in such production shall do so within a period of time to be determined by the Authority.

Those without landholdings who decide to engage in such production shall commence to do so at such time as the Authority shall determine, and for this purpose, all such corporations and partnerships shall lease public agricultural lands or idle private agricultural lands.

Those corporations and partnerships who decide to import rice and/or corn shall signify to the Authority their intention to do so and shall be governed in such importation by rules and regulations to be promulgated by the Authority.

For this purpose, all domestic corporations and partnerships shall register with the Authority within sixty (60) days from the date of effectivity of this Order.

4. All importations undertaken under this Order shall be coursed through the Authority, and shall be exempt, from all taxes and duties, provided, however, that the Authority shall charge reasonable fees for services rendered for such importations.
   
   
5. Any production of rice and/or corn in excess of employees' consumption requirements, resulting from cereal production activities which domestic corporations and partnerships may engage in under this Order, shall be certified to by the Authority and may be sold in local markets, provided however, That exports thereof may be done only through the Authority.
   
   
6. The Authority, upon consultation with the Department of Agriculture, Department of Natural Resources, Department of Trade and the Department of Industry, shall promulgate such rules and regulations as may be necessary for the effective implementation of this Order.
   
   
7. Nothing in this Order shall prevent domestic corporations and partnerships from entering into any agreement or other forms of combinations among themselves for the purpose of engaging in the production and/or importation of rice and corn, whenever the circumstances, as determined by the Authority, shall warrant.
   
   
8. Any violation of this Order or of the rules and regulations issued pursuant hereto shall be punishable by a fine of not less than ten thousand (P10,000.00) pesos and not more than twenty five thousand (P25,000,00) pesos and imprisonment of not less than five (5) years and not more than ten (10) years.  The penalty of imprisonment shall be imposed upon the President, Director or Directors, Manager, Managing Partners, or other officials of such corporations or partnerships responsible for such violation.  Any government official or employee who aids, abets or connives with any person in violating this act, shall in addition to the penalty which may be imposed upon the principal, be perpetually disqualified from holding any public office.
   
   
9. This Order shall take effect immediately.

Done in the City of Manila, this 27th day of' May, in the year of Our Lord, nineteen hundred and seventy-four.

				(Sgd.) FERDINAND E. MARCOS
				President
				Republic of the Philippines
	By the President:
	(Sgd.) ALEJANDRO MELCHOR
		Executive Secretary