Dar says gov’t aims to fully obligate P10-B RCEF by Dec.

The Department of Agriculture on Tuesday said it expects to have the P10-billion Rice Competitiveness Enhancement Fund (RCEF) fully obligated before the year ends.

Agriculture Secretary William Dar said that the P10 billion has been downloaded to implementing agencies and 32% of it has been committed to specific projects and activities.

“Mayroon nang activity or part of the component na dumaan na sa proseso at mayroon nang budget to support the activity and it’s almost going to the next level.

After the obligations, you need to disburse the money,” Dar said in a press conference.

“On or before December 2019, it will be obligated 100 percent,” he added.

The Philippine Rice Research Institute targets to distribute 2.12 million bags of seeds for the dry season cropping in 2020, covering 1.6 million hectares of rice farms. The procurement process is ongoing, said Dar.

The Agriculture department has started distributing certified inbred rice seeds to eligible beneficiaries of the RCEF. This is expected to help farmers achieve 6-ton per hectare yields.

Around 2.12 million bags of certified seeds will be distributed in 57 provinces, covering 1.06 million hectares.

Aside from seeds, farm machineries and postharvest facilities will be made available to an estimated 1,200 to 1,600 farmers’ cooperatives and associations (FCAs.). This year, 589 FCAs have been identified as beneficiaries nationwide.

Bidding for rice farm machinery and equipment is underway. The Philippine Center for Post-harvest Development and Mechanization said it aims to award bids by December.

Around P2.005 billion of funds are available for 2019 to finance farm machineries and postharvest facilities.

Tillers and accredited FCAs can also take out loans from the Land Bank of the Philippines and the Development Bank of the Philippines.

Up to P1 billion from the RCEF will be made available to the two banks.

Trainings and credit assistance have also been to rolled out.

“Ang disenyo po nitong RCEF program ay pataasin ‘yung ani ng ating mga magsasaka, pababain ‘yung kanilang gastos nang sa gayon, kahit mura ‘yung pagbili sa palay output nila ay kikita pa rin po sila,” Flordeliza Bordey, Philrice RCEF program director said in the same press conference.

But Bordey made it clear that the fund is not intended to have an impact on arm gate prices. “Ang RCEF ay hindi designed na pababain yung farm gate.”

On the other hand, Dar said: “It will balance everything out.”

However, Nueva Ecija farmer Gerry Esteban said the farm gate price of palay is now P12 to P13 per kilo.

“Parang hindi naging balanse ‘yung price ng palay. Sana kung ang presyo ng palay is P13, sana ang presyo ng bigas isa kalahati, P26 lang. Parang hindi naging balanse. Ngayon, malungkot na kami, malungkot pa rin ang consumer,” Esteban said.

Under the Rice Tariffication Law, the government should earmark P10 billion annually for the RCEF in six years.

From this fund, P5 billion will be allocated to rice farm machinery and equipment, P3 billion for rice seeds, P1 billion for expanded credit assistance, and P1 billion for rice extension services such as training for farmers.

President Rodrigo Duterte enacted the Rice Tariffication Law earlier this year, removing quantitative restrictions on rice imports and setting a 35% tariff for shipments from Southeast Asia.

RCEF was seen by its proponents as a protective mechanism to foster higher yields and lower production cost for rice farmers—ensuring that their livelihood will not be drowned out by the influx of imported rice. —VDS, GMA News