DA rallies support for RCEF extension

Agriculture Secretary Francisco Tiu Laurel Jr. on Tuesday pushed lawmakers to support the extension of the Rice Competitiveness Enhancement Fund (RCEF).

The RCEF, also called the Rice Fund, is part of the Rice Tariffication Law (RTL) that is being revisited for possible amendments as it expires next year.

According to the Department of Agriculture (DA), the RCEF has provided additional funding for government initiatives to improve the livelihood of Filipino farmers.

In his report to the Congressional Oversight Committee on Agricultural and Fisheries Modernization, Laurel described the RCEF as a “dynamic economic strategy” that has allowed the government to leverage significant tariffs on imported rice.

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,” said the DA chief, in seeking an extension of the RCEF until 2030 and changes to its allocation to enhance and optimize its impact.

Under the RTL, which was enacted in 2019, a P10-billion annual appropriation for the RCEF is allocated, which is directly distributed as aid to local farmers: P5 billion for mechanization, P3 billion for inbred seeds, P1 billion for loans, and P1 billion for training.

“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,” Laurel said.

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

Aside from extending the RCEF, the DA’s proposed major amendments to the RTL include strengthening the role of the National Food Authority as a price stabilizer by restoring its ability to import if needed to boost domestic supply and only through the authority of the DA secretary.

The DA also seeks the creation of the Rice Industry Development Program Management Office, which will serve as the Secretariat of the RCEF and will coordinate the program’s interventions, monitor and manage a comprehensive database, and ensure its activities are effectively implemented.