The government is on track to release entirely the P10 billion-worth Rice Competitiveness Enhancement Fund (RCEF) to assist rice farmers reeling from the plunging prices of palay.

Department of Agriculture (DA) Secretary William Dar said the RCEF will be “fully obligated” by December, noting that 32 percent of the fund has been committed to specific projects and activities.

“We have (implemented) ongoing activities financed by the RCEF and it’s almost going to the next level. After the obligations, we need to disburse the money,” Dar told reporters in a press briefing in Quezon City.

He reported that the Philippine Rice Research Institute (PhilRice) is targeting to distribute 2.12 million bags of seeds in 57 provinces for the dry season cropping next year.

“PhilRice’s seed distribution target will cover 1.6 million hectares of rice farms. The procurement process for this ongoing,” Dar said.

Last month, the DA started issuing certified inbred rice seeds to eligible RCEF beneficiaries. It is expected to help farmers register 6-ton per hectare yields.

Aside from seeds, farm machinery and postharvest facilities will be made available to an estimated 1,200 to 1,600 farmers’ cooperatives and associations (FCA). This year, 589 FCA have been identified as beneficiaries nationwide.

The Philippine Center for Post-harvest Development and Mechanization said it aims to award bids by December as bidding for rice farm machinery and equipment is now underway.

For this year, some P2.005 billion will be allocated to bankroll farm machinery and postharvest facilities.

Dar sad tillers and accredited FCA can also take out loans from the P1 billion fund earmarked for Land Bank of the Philippines and the Development Bank of the Philippines.

In the same press briefing, Philrice RCEF Program Director Flordeliza Bordey clarified that the RCEF was established to enhance the production and profit of the farmers and not intended to lower the farmgate prices of palay.

President Rodrigo Duterte enacted the Rice Tariffication Law earlier this year, scrapping quantitative restrictions on imported rice and imposing a 35 percent tariff for shipments from Southeast Asia.

RTL proponents said the earmarked RCEF is a protective mechanism to boost higher yields and lower production costs for rice farmers, ensuring that their livelihood will not be affected by the influx of imported rice.

Under the RCEF provisions, P5 billion will be coursed annually through for farm mechanization; P3 billion for inbred seed development and promotion; P1 billion for credit programs and another P1 billion for training and extension programs.