Villar seeks six more years of RCEF, funding boost to P20B
THE SENATOR who chairs the chamber’s agriculture and food committee expressed her support for a six-year extension of the Rice Competitiveness Enhancement Fund (RCEF), with funding raised to P20 billion a year.
“(Another) six years. (We plan to change) some aspects of the law,” Senator Cynthia A. Villar told reporters at the sidelines of a poultry industry conference on Wednesday.
The RCEF is intended to modernize the rice industry and is funded by import tariffs generated as a result of Republic Act 11203, or the Rice Tariffication Law.
The fund supports the supply of machinery, seed, and fertilizer, among others to farmers. The rice tariffs support RCEF to the tune of P10 billion annually. The tariff allocations are set to expire in June.
The law, which took effect in 2019, allowed private traders to bring in rice shipments without restriction. At the time, they had to pay a 35% tariff on Southeast Asian grain.
Ms. Villar added that changes being planned for the extension period include a dedicated budget for water impounding and to support organic fertilizer production.
“Magdagdag kami sa water impounding facilities at dagdagan ang composting machines to make organic fertilizer para may regular na budget para doon (we will add provisions to fund water impounding and composting),” she said.
Ms. Villar added that she is proposing an increase in annual RCEF funding to P20 billion, also funded by tariffs collected by the Bureau of Customs (BoC).
The Philippines collected P30 billion in rice tariffs in 2023, according to the BoC.
Executive Order No. 50, signed by President Ferdinand R. Marcos, Jr., extended the lowered tariff regime for rice imports, which was at 35% for shipments both within or over the minimum access volume quota.
Ms. Villar added that she will seek approval of the RCEF extension by June. — Adrian H. Halili