PRESIDENT Marcos Jr. has ordered the Department of Agriculture (DA) to use excess collections from the Rice Competitiveness Enhancement Fund (RCEF) to provide farmers with drying, mechanization, and other equipment support to sustain rice productivity in the country, the Presidential Communications Office (PCO) said yesterday.

In a news release, the PCO said the President, who is the concurrent DA secretary, told department officials that RCEF collections exceeding P10 billion can and should be used to acquire equipment to support and help improve agricultural productivity.

Republic Act 11203, or the Rice Tariffication Law (RTL), created the RCEF, which has a P10 billion annual appropriation to be used for the acquisition of rice farm machinery and equipment; for rice seed development, propagation, and promotion; as expanded rice credit assistance in the form of a credit facility managed equally by the Land Bank of the Philippines (LBP) and the Development Bank of the Philippines (DBP); and for rice extension services.

Under the law, tariff revenues in excess of the P10 billion annual appropriation will be earmarked for rice farmer financial assistance, titling of agricultural rice lands, expansion of crop insurance program on rice, and for crop diversification program.

Marcos, after announcing the lifting of the price cap on regular and well-milled rice last week, said the RCEF collection has already generated around P12 billion this year. The P2 billion in excess of the P10 billion, he said, should be divided and used for programs that would benefit farmers and fisherfolks.

He also said the government would continue to assist farmers and vulnerable sectors after the lifting the price caps.

The President said among the measures being implemented by the government is the barring of local government units (LGUs) from collecting toll fees and charges to all vehicles transporting goods or merchandise while passing through national roads and other thoroughfares to significantly lessen transportation and logistics costs, and the provision of rice assistance by Metro Manila lawmakers to their poor constituents.

The PCO said the President has already ordered the Department of Interior and Local Government (DILG) to enjoin all LGUs to rationalize the pass-through fees and other transport costs that they impose on motor vehicles transporting goods such as rice and other food products to facilitate the faster and more economical transport of rice.

The President has also recently approved the release of P12.7 billion to be distributed to 2.3 million small rice farmers affected by the lifting of the price ceiling. Each farmer beneficiary will receive P5,000 in financial assistance under the Rice Farmers Financial Assistance (RFFA) program of the government. (Jocelyn Montemayor, Malaya Business Insight)