Connect with us

Hi, what are you looking for?


House bill proposes P15-B annual allocation for RCEF

A BILL filed in the House of Representatives proposes to raise the annual allocation for the Rice Competitiveness Enhancement Fund’s (RCEF) to P15 billion from the current P10 billion.

House Bill No. 212, which was filed by Nueva Ecija Rep. Mikaela B. Suansing and Sultan Kudarat Rep. Horacio P Suansing, Jr., seeks to raise the program’s allocation to “maximize its efficacy in improving the productivity and incomes of Filipino rice farmers.”

The RCEF is a component of the Rice Tariffication Law. RCEF receives P10 billion from rice import tariffs a year for six years to support farm mechanization, seed development, training, and credit assistance.

“The RCEF was designed to reduce palay production costs by 30%, to increase yields by 50% and to double farmer incomes in six years to boost Filipino farmers’ competitiveness (following) the liberalization of the Philippine rice trade in 2019,” according to the bill.

“However, there have been reports that, despite RCEF’s implementation, farm yields have not improved, production costs have not declined, while farmgate prices of domestically produced palay have remained low,” it added.

Apart from the increase in budget, the bill proposed to make RCEF funding perpetual.

“That is, RCEF will not only be a six-year program… The government should continually provide support to our farmers to ensure the sustainability and competitiveness of the Philippine rice sector, as well as ensure food security,” according to the bill.

“While the amount appropriated to the rice fund and/or the amounts allocated to each individual RCEF component program can be changed, the rice fund itself should be (made permanent) and its receipt of annual appropriations should be guaranteed to perpetuity,” it added.

According to the bill, P5 billion from the fund will be allocated towards subsidies for essential farm inputs, such as fertilizer and chemicals, amid rising input costs.

The price of granular urea increased to P3,002.17 per bag from P1,115.52 before the recent global shortages, while complete fertilizer prices rose to P2,212.15 per bag from P1,094.48, according to the Fertilizer and Pesticide Authority.

“Based on a survey of rice farmers (with irrigated farms) in Nueva Ecija, expenditure on fertilizer comprises 39% of their total expense throughout the cropping season, while expenditure on other chemicals comprises 8%. This shows that subsidies for these other essential farm inputs are much needed, as low usage of fertilizer has reduced the palay yield in the first semester of 2022 by about 6.8%,” it said.

“While the Department of Agriculture has provided fertilizer subsidies in the past, it has been on an ad hoc basis. That is, subsidies have been provided during some cropping seasons but not others, and amounts allocated towards subsidies have varied greatly depending on fund availability,” it added.

The bill also proposed to increase the annual allocation for rice farm machinery and equipment to P5.5 billion from the current P5 billion and decrease the annual allocation for expanded rice credit assistance from the current P1 billion to P500 million.

It also seeks to enhance the reporting, monitoring and coordination mechanisms between the Congressional Oversight Committee on Agricultural and Fisheries Modernization and RCEF-implementing agencies. — Luisa Maria Jacinta C. Jocson

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...


Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...


Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...


REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...


Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.