The performance of the Philippines’ rice sector has gone up by seven percent since the Rice Tariffication Law (RTL) was enacted, the Department of Agriculture (DA) said on Friday, May 17.
“Nagpapasalamat kami dito sa RTL, lalo na dito sa RCEF dahil malaki ang naitulong nito – tumaas almost by seven percent iyong ating naging performance ng rice sector simula noong maipasa ang RTL at napakaganda nito para sa ating overall rice productivity (We are grateful for the RTL, especially the RCEF because it has been a great help – our rice sector's performance has increased by almost seven percent since the RTL was passed, and this is very beneficial for our overall rice productivity),” Assistant Secretary Arnel de Mesa, the spokesperson of the DA, said.
He cited the agency’s data from 2019 to 2023 wherein rice production in the 57 RCEF provinces increased by approximately seven percent.
The RCEF, according to the agency, is a key component of the RTL which is currently under review for potential amendments.
De Mesa noted that the DA is pushing to increase the RCEF fund to P15 billion.
“Dito sa gagawin na extension at amendment ng RTL, iminumungkahi na gawing at least P15 billion na iyong RCEF at iyong excess collection naman ay gagamitin para rin sa irrigation, para sa Rice Farmers Financial Assistance – ito iyong limang-libong piso, Niña, na pinamamahagi rin sa mga magsasaka na hindi tataas sa dalawang ektarya iyong kanilang sinasaka (In the proposed extension and amendment of the RTL, it is suggested to increase the RCEF to at least 15 billion pesos. The excess collection will also be used for irrigation and for the Rice Farmers Financial Assistance – this is the five thousand pesos, Niña, that is distributed to farmers cultivating no more than two hectares,” the spokesperson stated.
Recently, the DA called legislators to extend the RCEF until 2030 as the RCEF or Rice Fund would expire next year.
Agriculture Secretary Francisco Tiu Laurel Jr. characterized the RCEF as a dynamic economic strategy that has allowed the government to leverage significant tariff from imported rice to enhance farmers’ productivity and incomes.
“[The Rice Fund] has provided a substantial revenue stream for the government to finance essential development projects aimed at improving the competitiveness of the rice sector in the Philippines,” he stated.
Over a million Filipino rice farmers have benefited from the Rice Fund since its implementation in 2019, Laurel noted.
Rice Fund allocates P10 billion annually for the distribution of farm machinery and seeds, among other resources.
Also, the agency proposed changes to the RTL that would allow the National Food Authority (NFA) temporary powers to intervene in the rice market as needed to correct significant price disparities and perform price stabilization functions in times of food security emergencies and periods of sudden price hikes and sustained high prices of rice, creation of an office that would coordinate various rice programs of the government, and strengthening regulatory functions specifically targetting anti-competitive practices such as rice hoarding and price manipulation to protect consumers and ensure market fairness.
To recall, the Federation of Free Farmers (FFF) has earlier warned lawmakers that the proposal to subsidize the sale of NFA’s rice to the public is detrimental to the country’s rice farmers.
It noted that the proposed scheme could be costly and difficult to manage.
Per the studies conducted by the FFF, the NFA rice subsidy of P10 per kilo will require P31 billion a year to service the 4.4 million poor households covered by the Pantawid Pamilyang Pilipino Program (4Ps).