THE Department of Agriculture (DA) proposed the increase of the Rice Competitiveness Enhancement Fund (RCEF) to P15 billion from the current allocation of P10 billion.

In his report to the House of Representatives Committee on Agriculture last Monday, Agriculture Secretary Francisco P. Tiu Laurel Jr. said the Rice Tariffication Law (RTL) provided “the platform and infrastructure to increase the productivity and incomes of farmers even as competition arising from freer importation stands to benefit consumers.”

“We recognize that much needs to be done to ensure that we attain the best possible outcome vis-a-vis identified targets under RTL given the remaining time we have before the law expires,” Tiu Laurel said as the RTL is set to lapse this year.

In a draft bill presented by National Rice Industry Development Program Undersecretary Christopher V. Morales, the proposed fund would remain earmarked for farm mechanization (P7.5 billion), seeds (P4.5 billion), rice credit assistance (P900 million), and rice extension services (P900 million).

“On the mechanization component, we want to expand the scope to include the construction and enhancement of postharvest and processing facilities, which includes warehouses, grain storage facilities, and drying facilities,” Morales said.

“For the seed component, we would like to expand the scope to distribute preferred rice seeds, so clustered rice farmers’ preference either inbred rice seeds or locally produced public hybrid rice seeds,” he added.

Morales also proposed having the principal and interest payments on loans be re-deposited to the fund and made available for new loans, establishing some sort of a revolving fund.

Other components, he said, would also be included such as the soil health improvement (P600 million), pest and disease management (P300 million) and the Rice Industry Development-Program Management Office (P300 million). The latter would be created “to ensure a holistic approach of rice concerned agencies and industry players,” Morales explained.

The DA’s proposal also includes a review of the allocation or percentages in the third year with preferential attention granted to rice farmers, cooperatives, and associations.

“The president may reallocate the RCEF fund with recommendations from the Secretary of agriculture and the RCEF Program Steering Committee to adjust kung ano yung nangyayari sa ating industry [to adjust if there are changes in the industry],” Morales said.

Moreover, the DA official proposed that tariff revenues in excess of P15 billion be allocated to certain programs subject to the DA Secretary’s approval.

“We put a provision stating that if the RCEF collection falls short of P15 billion, the Department of Budget and Management (DBM) should augment the funding requirement of RCEF,” he said.

According to the Bureau of Customs, the country’s rice tariff collections reached nearly P29 billion in 2023.

The DA’s proposed amendment would also allow the National Food Authority (NFA) to secure buffer stocks through alternative schemes if the available supply is insufficient.

“The NFA should be given option to purchase a certain percentage of the rice brought in by accredited importers at the CIF landed price declared by the importer based on customs documents and, the last resort, to purchase from other countries, subject to explicit authorization from the DA Secretary,” Morales said.

Tiu-Laurel said “critical modifications” are needed to strengthen RTL and ensure the optimum impact in its implementation.

President Ferdinand R. Marcos Jr. earlier said he would certify the proposed amendments to the RTL as urgent in a bid to lower rice prices. (Business Mirror)