Group calls for P15K direct subsidy to rice farmers

Rice watch group "Bantay Bigas" is calling on the government to provide direct subsidies to rice farmers to help them cope with the rising palay-production cost.

“Nanawagan tayo ng at least 15,000 pesos na direct subsidy mula sa pamahalaan para sa mga magsasaka para ma-cover 'yung cost of fertilizer na ginagamit ng mga magsasaka,” Bantay Bigas spokesperson Cathy Estavillo said in an interview on Dobol B TV on Saturday.

(We appeal to the government to give at least P15,000 direct subsidy for the rice farmers to cover the cost of fertilizers.)

Estavillo said the P10-billion Rice Competitiveness Enhancement Fund (RCEF) under the Rice Tariffication Law is not enough to help the rice farmers.

The RCEF has the following components:

• P5 billion a year for rice farm machinery and equipment
• P3 billion for rice seed propagation
• P1 billion credit line for rice farmers
• P1 billion for extension services

In excess of the P10 billion to be collected from imported rice, President Rodrigo Duterte institutionalized the grant of P5,000 financial assistance to farmers tilling two hectares of land and below.

However, Estavillo said that despite the higher production cost, rice farmers are selling their produce at lower prices due to the influx of imported rice.

Also, the influx of imported did not help lower the retail prices, as the group saw an increase in the price of regular well-milled rice from P38 per kilo to P40.

Estavillo said the continued spike in petroleum prices has caused the increase in rice retail prices.

Thus, the group urged the government to abolish the collection of excise taxes on fuel and impose a price cap on basic commodities to avert the further increase in prices. —LBG, GMA News