NEDA expects the RTL to further bring down the price of rice as inflation slowed to its lowest in 35 months.

The National Economic and Development Authority (NEDA) urged implementing agencies on Thursday to recognize as urgent the need to roll out programs under the Rice Competitiveness Enhancement Fund (RCEF) as the falling price of rice persists for the fourth consecutive month.

“There is a need to fast-track the rollout of the programs and projects under the RCEF to support the farmers against dropping palay farmgate prices,” NEDA Undersecretary for Policy and Planning and currently Officer-in-Charge Rosemarie Edillon said.

Rice deflation was observed for the fourth consecutive month, reaching minus 5.2 percent in August from minus 2.9 percent in July.

Signed into law last February, Republic Act 11203 or the Rice Tariffication Law (RTL) aims to boost food security in the country, strengthen the rice industry and promote a more competitive domestic rice market.

Under the law, some P27 billion were to be generated as tariff duties of which P10 billion was earmarked for the provision of mechanized equipment and certified seeds for distribution to rice farmers seeking government assistance.

Once the RCEF-funded programs are in place, farmers are to substantially boost their production output and profits.

The implementation of RCEF projects was earlier impeded due to a dispute between the Departments of Agriculture (DA) and the Department of Budget and Management (DBM).

The DA said it will claim the full amount of P10 billion once tariffs started generating funding for RCEF. The DBM said the P5 billion released in December 2018 for the DA was already part of the fund.

“The RTL continues to help increase rice supply in the country. This allows more Filipinos to access cheaper rice,” Edillon said.

“This is especially helpful since a large number of families spends almost 30 percent of their total food expenditure on rice,” she added.

The economic planning agency also expects the RTL to further bring down the price of rice as inflation slowed to its lowest in 35 months.

However, with the sharp drop of palay prices, farmers complain over its adverse impact.

Farmers claim the RTL caused the farmgate price of palay to its breakeven point of P8 per kilo and impacted on their livelihood in the process.

Rice planters in Nueva Ecija, the largest rice-producing region, claim they sold farmland and machinery due to insolvency.

The NEDA said the domestic retail and wholesale price of rice is now lower compared to last year, down 10 to 13 percent year-on-year or around P4.20-5.20/kilo.