The Department of Budget and Management (DBM) has approved the release of P455.58 million to the Department of Agriculture (DA) and three other government-owned and -controlled corporations (GOCCs) to fund the operating requirements of the Rice Competitiveness Enhancement Program (RCEP) for the first quarter of this year.
The fund, also known as the Rice Competitiveness Enhancement Fund (RCEF), is intended to improve the productivity and competitiveness of local rice farmers and increase their income through the provision of farm machinery and equipment; rice seed development, propagation and promotion; expanded rice credit assistance; and rice extension services.
On January 29, Budget Secretary Amenah Pangandaman approved the release of notices of cash allocation (NCAs) amounting to a total of P431.79 million to cover operating requirements for various programs/components of the implementing agencies of RCEP for the first quarter of 2024.
These agencies include the Land Bank of the Philippines (P133.65 million), Development Bank of the Philippines (P120 million) and the Philippine Rice Research Institute (178.14 million).
In addition to the P431.79 million released to those GOCCs, on January 26, the DBM also approved the issuance of NCA amounting to P23.79 million to cover the DA’s 2024 first quarter operating cash requirements for the said program.
Of the approved amount, P10.97 million was released to the DA-Agricultural Training Institute (ATI), while the remaining P12.82 million was released to DA-Philippine Center for Postharvest Development and Mechanization (PhilMech).
Republic Act (RA) No. 11203 provides for the creation of the RCEF which shall consist of an annual appropriation of P10 billion for the next six years following the approval of the law and shall be automatically credited to a special account in the general fund of the National Treasury.
Also, the amount allocated shall be released directly to the implementing agencies as provided for in RA 11203, based on the objectives and plans of the rice industry roadmap.
The law further provides that the fund shall be allocated and disbursed to rice producing areas, as follows: 50 percent of the fund shall be used as grant in kind to eligible farmers associations, registered rice cooperatives and local government units in the form of rice farm equipment; 30 percent shall be used for the development, propagation and promotion of inbred rice seeds to rice farmers and the organization of rice farmers into seed growers’ associations and/or cooperatives engaged in seed production and trade; 10 percent shall be made available in the form of a credit facility with minimal interest rates and minimum collateral requirements to rice farmers and cooperatives; and 10 percent shall be made available for the extension services provided by PhilMech, PhilRice, ATI and Technical Education and Skills Development Authority for teaching skills on rice crop production, modern rice farming techniques, seed production, farm mechanization and knowledge/technology transfer through farm schools nationwide. – Angela Celis
