AGRICULTURE Secretary Francisco Tiu Laurel Jr. has urged lawmakers to support the Rice Competitiveness Enhancement Fund (RCEF) extension.
In his report to the Congressional Oversight Committee on Agricultural and Fisheries Modernization led by Senator Cynthia Villar, Laurel called the Rice Fund a “dynamic economic strategy” that bolstered farmer’s productivity and incomes through the tariffs.
“The RTL has leveraged tariff revenues to fund critical initiatives that have brought transformative changes to our agricultural landscape. Notably, the provision of high-quality seeds and modern machinery through the RCEF has led to a remarkable increase in rice yields and a reduction in production costs,” the agriculture chief was quoted as saying.
“Specifically, our data shows that from 2019 to 2023, palay production across the 57 RCEF provinces increased by approximately 7 percent,” he added.
The RCEF allocates P10 billion for farm mechanization (P5 billion), inbred seeds (P3 billion), rice credit assistance (P1 billion), and rice extension service (P1 billion). However, the DA earlier proposed to increase the Rice Fund to P15 billion.
The additional fund would be earmarked for other components such as soil health improvement, pest and disease management, and the creation of the Rice Industry Development-Program Management Office.
According to Laurel, the Rice Fund “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 added that the Rice Fund has helped over a million Filipino rice farmers since its implementation five years ago.
Aside from its proposal to add P5 billion to the Rice Fund, the department has sought the extension of the Rice Tariffication Law (RTL) to 2030.
The DA also proposed several changes to the RTL regarding the mandate of the National Food Authority (NFA). Among these is providing the NFA temporary powers to intervene in the rice market when necessary to correct significant price disparities and perform its price stabilization function during food security emergencies and sudden price hikes.
The department also proposed the creation of an office that would coordinate various rice programs of the government and strengthen regulatory functions particularly targeting anti-competitive practices such as rice hoarding and price manipulation to protect consumers and ensure market fairness.
“These strategic enhancements aim to bolster the resilience and sustainability of the Philippine rice industry, securing long-term food security and economic stability for the nation,” the DA said in a statement. (Business Mirror, Ada Pelonia)