The Department of Agriculture (DA) supports the proposed extension of the Rice Competitive Enhancement Fund (RCEF), including an increase in the existing fund size of P10 billion.
“Definitely, I think it should be extended. But there should be adjustments so we can adapt to the times,” said DA Secretary Francisco Tiu Laurel Jr. on the sidelines of a corporate event in Batangas on Monday.
Tiu Laurel said amendments should incorporate modernization and enhancement measures
that would improve the income of rice farmers and boost their competitiveness.
Tiu Laurel believes the P10-billion RCEF for farm and other inputs should be increased as total tariff collection last year reached P29 billion.
RCEF was created by the Rice Tariffication Law (RTL) which among others provides for the allocation of all tariffs collected from rice imports to programs that would benefit local rice farmers and the industry.
Under RTL, collection will be up to June 2024 after it started in 2019.
Tiu Laurel said the allocation on steps that would improve farmers’ competitiveness should be increased.
He said each project funded by RCEF must include post-harvest facilities that could increase rice recovery for every kilo of palay by as much as 15 percent. In turn, higher productivity would result to lower import volumes.
Nueva Ecija Rep. Rosanna Vergara has filed a bill seeking to extend RCEF by another six years.
Her proposal is supported by Sen. Cynthia Villar, chair of the Senate Committee on Agriculture.
Aside from higher rice fund budget for mechanization and post-harvest facilities, Tiu Laurel said the new law should have a provision allowing for an annual review on the fund allocation to further maximize farm productivity.
“We need to review the funding allocation every year and put it where it is most needed. If we mechanize this year and its sufficient, we could allot the funds somewhere else,” Tiu Laurel added.
In earlier discussions, Tiu Laurel also mentioned the need to allow DA or the National Food Authority (NFA) to regain its ability to influence rice prices in the market and not be limited to buying rice from local farmers for buffer stocking.
Until RTL, the NFA was authorized to import rice and sell them through authorized dealers to influence the market price of rice.
