PRESIDENT Ferdinand R. Marcos, Jr. is set to sign into law on Monday a bill seeking a P20-billion increase in the government’s annual fund for rice farmers, according to Senate President Francis Joseph “Chiz” G. Escudero.
Mr. Escudero said the bill, which will amend Republic Act No. 11203, the Rice Tariffication Law, will extend the implementation of the Rice Competitiveness Enhancement Fund (RCEF) and expand its funding to P30 billion yearly from P10 billion currently.
With the bill’s signing, the “country’s rice farmers will receive greater support through the provision of farm machinery and equipment, free distribution of high quality inbred certified seeds, and other interventions,” he said in a statement.
The law extends the life of the RCEF, which was set to expire this year, until 2031.
RCEF, which is intended to modernize the rice industry, is funded by import tariffs generated under the 2019 rice tariffication law, which liberalized rice imports.
The law stripped the National Food Authority (NFA) of its power to import, allowing private traders to bring in rice with no restrictions. They must pay a 35% tariff on grain sourced from Southeast Asia.
“An increase in the annual allocation to the RCEF will also be instituted, from the current P10 billion to P30 billion until the year 2031,” Mr. Escudero said.
Under the bill, a buffer stock of rice will be maintained, equivalent to 30 days at any given time, “to sustain disaster relief programs of the government during natural or man-made calamities and to address food security emergency situations on rice,” the Senate leader said.
The bill seeks to strengthen the Department of Agriculture, through the Bureau of Plant Industry, to conduct a “stronger inspection and monitoring” of warehouses and agricultural facilities to ensure a stable supply of rice in the market and ensure the quality of rice being sold to consumers.
“We want to avoid a situation where the price of rice shoots up unnecessarily due to smuggling or hoarding. This has long been a problem in the country that should be addressed immediately,” Mr. Escudero said.
The new law also authorizes the Agriculture Secretary to designate importing entities, except the NFA, to import rice when there is an extraordinary increase in rice prices. — Kyle Aristophere T. Atienza
