Over P400M Released for Rice Competitiveness Enhancement in the Philippines

The Department of Budget and Management (DBM) has announced the release of more than P400 million to support the Rice Competitiveness Enhancement Fund (RCEF) for the first quarter of 2024. This financial injection is aimed at bolstering the productivity and competitiveness of local rice farmers, enhancing the Philippine rice sector’s modernization efforts.

Budget Secretary Amenah Pangandaman approved the allocation of P455.58 million to various agencies including the Department of Agriculture (DA), Land Bank of the Philippines, Development Bank of the Philippines, and the Philippine Rice Research Institute. These funds are designated to cover the RCEF’s operational requirements from January to March 2024, with Notices of Cash Allocation (NCAs) issued on January 29 totaling P431.79 million.

The distribution of the funds is as follows:

• Land Bank of the Philippines received P133.648 million,
• Development Bank of the Philippines was allocated P120 million,
• Philippine Rice Research Institute was given P178.141 million.

Additionally, P23.79 million was disbursed directly to the DA to meet its operating needs for the program in the first quarter. Of this amount, P10.972 million went to the DA-Agricultural Training Institute (DA-ATI), and P12.823 million to the DA-Philippine Center for Postharvest Development and Mechanization (DA-PhilMech).

The RCEF, established under the Rice Tariffication Law (RTL) or Republic Act 11203, aims to provide comprehensive support to increase the yield and competitiveness of Filipino rice farmers. This includes the provision of farm machinery and equipment, rice seed development, expanded rice credit assistance, and extension services. A total of P10 billion annually for six years post-RTL enactment in 2019 is earmarked for these purposes.

The fund allocation is strategically divided among four main programs: rice farm mechanization (P5 billion), seed propagation (P3 billion), rice credit assistance (P1 billion), and extension services (P1 billion). This structured approach ensures a broad spectrum of support, from equipment grants to skill development and technological advancement, directly addressing the needs of rice-producing areas across the country.

Secretary Pangandaman emphasized the government’s commitment to achieving food security, in line with President Ferdinand R. Marcos Jr.’s vision for a “Bagong Pilipinas.” The continuous support for agricultural programs like the RCEF is a critical component of this vision, aiming to secure rice, a staple food, for every Filipino household.