DA chief urges lawmakers to back RCEF extension

Agriculture Secretary Francisco Tiu Laurel Jr. has called on lawmakers to back the extension of the Rice Competitiveness Enhancement Fund (RCEF), a component of the Rice Tariffication Law (RTL) that is being revisited for possible amendments.

In a statement on Tuesday, Tiu Laurel said that the RCEF has provided additional funding for government initiatives to improve the livelihoods of Filipino farmers.

Citing his report to the Congressional Oversight Committee on Agricultural and Fisheries Modernization, the Agriculture chief said the RCEF, or “Rice Fund,” that is set to expire next year is a “dynamic economic strategy” that has allowed the government to leverage significant tariffs from imported rice to enhance farmers’ productivity and incomes.

The Rice Fund "has 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,” Tiu Laurel said.

The DA chief is seeking the extension of RCEF until 2030 and changes to the fund's allocation to improve efficiency and optimize its impact.

The RCEF is being allocated P10 billion a year for the distribution of farm machinery and seeds, credit assistance, and rice extension services.

Tiu Laurel said over a million Filipino rice farmers have benefited from the Rice Fund since its implementation in 2019.

"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,” he said.

"Specifically, our data shows that from 2019 to 2023, palay production across the 57 RCEF provinces increased by approximately 7%,” he added.

The DA has also proposed changes to the RTL that would give the National Food Authority temporary powers to intervene in the rice market as needed to correct significant price disparities and perform price stabilization functions in times of food security emergencies and periods of sudden price hikes and sustained high prices of rice, the creation of an office that would coordinate various rice programs of the government, and strengthening regulatory functions specifically targeting anti-competitive practices such as rice hoarding and price manipulation to protect consumers and ensure market fairness.

Tiu Laurel said the “strategic enhancements” aim to bolster the resilience and sustainability of the Philippine rice industry, securing long-term food security and economic stability for the country. —VBL, GMA Integrated News