THE Department of Agriculture (DA) has increased to P7,000 from the previous P5,000 the amount of cash assistance to farmer-beneficiaries of the Rice Competitiveness Enhancement Fund (RCEF).
The RCEF or Rice Fund was created under the Rice Tariffication Law (RTL), with an annual appropriation of P10 billion for rice farm machinery and equipment, rice seed development, and expanded rice assistance. The additional cash assistance will increase the funding to P17.6 billion, which will be sourced from excess annual tariff revenues from rice importation.
The Bureau of Customs (BOC) reported that rice import tariff revenues in 2023 amounted to P29.9 billion.
Agriculture Secretary Francisco Tiu Laurel Jr. said changes in the distribution of cash assistance to farmers for fiscal years 2023-2024 are effective until Dec. 31, 2025.
In September, the Senate approved the bicameral conference committee report on the bill to amend Republic Act (RA) 11203 or the RTL. The amended bill proposed that the Rice Fund, which was supposed to end this year, be extended for another six years until 2031, and its fund increased to P30 billion annually from the current P10 billion.
Tiu Laurel previously said increasing cash assistance will enhance farmers’ competitiveness. The Rice Fund will likewise upgrade post-harvest facilities, which could improve rice recovery rates by up to 15 percent per kilogram of unhusked rice.
Amending the RTL, he said, should allow for an annual review of fund allocation to maximize farm productivity. The RTL liberalized the rice sector by stripping the National Food Authority of its authority to engage in trading of the commodity. Its new mandate is to maintain buffer stocks for emergencies and natural disasters.
Senate Committee on Agriculture Chairman Cynthia Villar had expressed support to extend the RTL, saying she will push double the Rice Fund annual allocation to P20 billion.
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