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DA: Local rice sector growing after tariffication law

Published Jan 25, 2025 06:51 am

The Philippines’ rice industry has been making significant strides since the enactment of the Rice Tariffication Law (RTL) in 2019, driven by sustained collaboration of the government, farmers, and local authorities, according to the Department of Agriculture (DA).

In a statement, the DA said initiatives such as the Rice Competitiveness Enhancement Fund (RCEF) and the National Rice Program (NRP) played a pivotal role in the sector’s growth.

The RTL, embodied in Republic Act (RA) No. 11203, created the RCEF which established the Rice Competitiveness Enhancement Program (RCEP) that oversees the NRP.

Essentially, these programs are aimed at empowering farmers and promoting the adoption of modern farming technologies.

The Philippine Rice Research Institute (PhilRice) told Manila Bulletin that various studies and reports over the years reinforce the impressive gains observed by the rice industry.

For instance, PhilRice itself has provided free high-quality inbred seeds to 1.77 million farmers by August of last year.

Meanwhile, The DA in 2023 expanded the RCEF’s coverage from 57 to 77 provinces. This increase benefitted over a million farmers, particularly those in remote communities.

Since it was established in 2019, the RCEF’s Mechanization Program has so far delivered 29,599 units of farming equipment, including machines for land preparation, harvesting, and milling. 

According to the Philippine Center for Postharvest Development and Mechanization (PHilMech), this initiative has reduced labor costs by P2 per kilo of palay or unmilled rice and boosted farm income by P9,000 per hectare.

The DA noted that continued investment in technology has enhanced the mechanization level of rice farms to 2.77 horsepower per hectare (HP/ha) in 2024, which increased from 2.68 HP/ha in 2019.

These efforts, combined with improved yields in irrigated and rainfed areas, ultimately led to a record-high palay production of 20.06 million metric tons (MT) in 2023.

PhilRice pointed out that farmers benefiting from the RCEF program saw higher yields in both the dry and wet seasons.

Between 2019 and 2023, dry-season yields jumped from 3.63 MT per hectare to 4.34 MT, while wet-season yields rose from 3.69 MT to 4.03 MT.

Additionally, production costs saw a downtrend of P1.65 per kilo during the dry season and P0.42 during the wet season.

The DA noted that, despite these achievements, the rice industry still continues to face challenges such as typhoons, climate phenomena like El Niño and La Niña, and high input prices.

However, it stressed that the sector’s long-term prospects remain promising, given the advancements in mechanization, alongside yield improvements and cost reductions.

Related Tags

PhilRice Rice Tariffication Law (RTL) Department of Agriculture (DA) rice industry
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