RCEF extension seen stabilizing rice supply

Senator Cynthia Villar on Monday expressed optimism the Philippines will enjoy “long-term” rice stability following the enactment of a measure amending the Rice Tariffication Law (RTL).

Villar, who chairs the Senate Committee on Agriculture, Food and Agrarian Reform, thanked President Ferdinand Marcos Jr. for signing Republic Act 12078, or the Agricultural Tariffication Act, saying it would protect local rice producers.

The newly enacted law responds to the needs of rice industry stakeholders, she stressed.

“I am very happy the President signed the law. This is an early Christmas gift for our farmers and cooperative associations as it expands the scope and benefits due them in the Rice Competitiveness Enhancement Fund (RCEF),” said Villar, the primary sponsor of the RCEF Extension Law.

Enacted in 2019, the RTL lifted quantitative restrictions on rice imports and introduced tariffs to protect Filipino rice producers.

The RTL ensures that farmers benefit directly from the liberalization of rice trading by providing P10 billion annually for the RCEF until 2024. The newly signed law extends the RCEF until 2031, with its annual allotment increased to P30 billion.

“This is a leap towards ensuring the long-term stability of the rice sector,” Villar said.

She highlighted the government’s continued support for farmers by providing much-needed machinery, high-quality seeds, credit assistance, additional irrigation programs, and essential training to boost productivity.

The senator noted the law also addresses rice supply shortages and extraordinary price surges. She pointed to a provision in the amended law that empowers the DA Secretary to respond to rice food shortages and price spikes.

The DA can sell rice through government agencies, such as hospitals and jails, and Kadiwa outlets, replenishing stocks through local procurement from farmers and cooperatives.

RA 12078 also authorizes the DA Secretary to designate importing entities, except for the National Food Authority, to supplement rice supplies and stabilize prices.

Villar described the approval of the RCEF extension as “a resounding victory for the many farming stakeholders and farmer groups who requested the law’s extension with amendments.”

“We are planting the seeds for a fruitful and productive future, not only for our farmers but also for our beloved nation,” she said.