MANILA -- Concerned government agencies including the Departments of Finance (DOF), Agriculture (DA), Trade and Industry (DTI), and the National Economic and Development Authority (NEDA) on Monday assured the availability of the PHP10-billion Rice Competitiveness Enhancement Fund (RCEF), which is a component of Republic Act No. 11203, or the Rice Tariffication Law.
This, despite the issue about the PHP5 billion earlier released by the Department of Budget and Management (DBM) which was originally intended for the RCEF but was channeled instead to the National Rice Program when the Rice Tariffication bill failed to be enacted last year.
NEDA Assistant Secretary Mercedita Sombilla, in a press briefing during the Rice Traders Forum held at the Ayuntamiento de Manila in Intramuros, Manila, said the PHP10 billion RCEF "is a commitment" by the government so "it has to come in."
Sombilla explained that the PHP5 billion released earlier by the DBM was part of the RCEF "kaya lang medyo nagkalituhan".
"That's why we're asking the DA to help up to provide funds to PhilRice (Philippine Rice Research Institute), and PhilMech (Philippine Center for Postharvest Development and Mechanization)," she said.
RCEF is funded by tariffs generated by rice imports. The fund hopes to make the domestic rice industry more competitive through farm mechanization, access to better seed, and more financing and extension services, among other measures.
It is allocated as follows:
• 50 percent going to PhilMech to provide farmers with rice farm machineries and equipment;
• 30 percent going to PhilRice to be used for the development, propagation, and promotion of inbred rice seeds to rice farmers and the organization of rice farmers into seed growers' associations engaged in seed production and trade;
• 10 percent to be made available in the form of credit facility with minimal interest rates and with minimum collateral requirements to rice farmers and cooperatives to be managed by the Land Bank of the Philippines and the Development Bank of the Philippines; and
• 10 percent to be set aside to fund extension services by PhilMech, Agricultural Training Institute (ATI), and the Technical Education and Skills Development Authority (TESDA) for teaching skills on rice crop production, modern rice farming techniques, seed production, farm mechanization, and knowledge/ technology transfer through farm schools nationwide.
DA Secretary Emmanuel "Manny" Piñol earlier said the PHP5 billion channeled to the National Rice Program "could not be part of RCEF as it did not follow RCEF guidelines allocation."
"We will insist in getting the whole PHP10 billion (RCEF). That is the law. There is no way that it will have no funding, that's part of the law," he said.
The DA chief said the PHP10 billion RCEF, which would be implemented annually over the next six years, will enable Filipino farmers to export rice at globally competitive price levels.
For his part, DA Undersecretary Ariel Cunanan said "RCEF is over and above to whatever budget we have on rice. The (DA) Secretary has already given a statement. He has not changed his position."
Meanwhile, Sombilla said that "the spirit of the DBM is to provide for the RCEF."
She assured that the remaining PHP5 billion will be released in the third quarter of the year.
"We have to help each other to make the law really work. This is a whole government approach," she said.
If ever the DTI, DA, NEDA, DOF fail to come up with a solution concerning the PHP5 billion channeled to the National Rice Program, "DBM has to come up with the money," she said.
"But initially, we're trying to ask the DA if they could still help in the initial stages. Kapag wala talaga, then DBM has to come up with the fund because it is a commitment, the PHP10 billion RCEF has to come in," she noted.
In the meantime, Sombilla said, guidelines in using the RCEF are now being prepared by concerned government agencies.
"Hopefully, when the guidelines are completed, then the money for these particular components will then be available," she said. (PNA)
