Sen. Imee advocates direct rice sales to LGUs, coops thru RCEF

Senator Imee Marcos said local government units (LGUs) and agriculture cooperatives should be allowed to purchase rice directly from farmers using part of the P10-billion Rice Competitiveness Enhancement Fund (RCEF) or Rice Fund.

Marcos raised the idea in a radio interview, noting farmers will benefit once the agricultural sector agreed for a minimum price cap of rice.

According to Marcos, the government could better tax collection if the Philippine Center for Postharvest Development and Mechanization (PhilMech), Philippine Rice Research Institute (PhilRice), as well as LGUs and cooperatives would have their own purchase order for rice.

“Sila na rin ang mamili para sila na ang magmi-milling at sila na ang magba-buy back mula sa ating magsasaka. Makakatulong yun ‘pag nagkasundo tayo sa isang minimum price para hindi naman luging lugi ang ating farmers (They will be the ones to buy so they can do the milling, and they will be the one to buy back from our farmers. It will help if we agree on a minimum price so that our farmers will not lose money)," she said.

The RCEF was created to improve the competitiveness of rice farmers and increase their income amid the liberalization of the local rice trade policy through rice farm mechanization; inbred rice seed development, propagation, and promotion; expanded rice credit assistance; and rice extension services.

“The rice problem is not an ordinary emergency and will not be solved overnight thus the need for all hands to be on deck,” Marcos stressed, as she likewise suggested extending the Rice Fund up to 2031.

The Rice Tariffication Law (RTL) provides that the RCEF shall be in effect for six years, beginning in 2019 and ending in 2025.

Marcos vowed to continue to push for long-term solutions with the end goal of weaning the Philippines off its dependence on rice importation.

The government is currently prioritizing the amendment of RTL to lower rice prices in the country.

The Philippine Statistics Authority (PSA) projects that rice inflation will "increase strongly" until July this year. This is due to the worldwide supply of the commodity remaining thin, and El Niño continuing to cause damage to farmlands.