The Department of Budget and Management (DBM) has approved the release of around PHP455.58 million for the operating requirements of the Rice Competitiveness Enhancement Program (RCEP) for the first quarter of 2024.
In a statement on Tuesday, the DBM said the funds would be given to the Department of Agriculture (DA), the Philippine Rice Research Institute (PhilRice), the LandBank of the Philippines, and the Development Bank of the Philippines (DBP).
Budget Secretary Amenah Pangandaman on Jan. 29 approved the release of Notices of Cash Allocation (NCAs) amounting to PHP431.79 million for the various programs or components of PhilRice, LandBank, and DBP.
DBM said PhilRice would get PHP178.141 million, while LandBank and DBP would receive PHP133.648 million and PHP120 million, respectively.
On top of the PHP431.79 million granted to the three implementing agencies of RCEP, Pangandaman also approved on Jan. 26 the issuance of NCA worth PHP23.79 million to cover the DA’s operating cash requirements for the said program for the first quarter of 2024.
The DBM said around PHP10.972 million of the approved amount of PHP23.79 million was released to DA- Agricultural Training Institute (DA-ATI), while the remaining PHP12.823 million was granted to DA – Philippine Center for Postharvest Development and Mechanization (DA-PhilMech).
Pangandaman vowed to continue supporting programs that boost the local production of major agricultural commodities, to fulfill the Marcos administration’s goal of attaining food security.
The fund, also known as the Rice Competitiveness Enhancement Fund (RCEF), is intended to improve the productivity and competitiveness of local rice farmers and increase their income through the provision of farm machinery and equipment, rice seed development, propagation, and promotion, expanded rice credit assistance, and rice extension services.
Republic Act (RA) 11203 provides for the creation of the RCEF with an annual appropriation of PHP10 billion for the next six years following the approval of the law which will be automatically credited to a Special Account in the General Fund of the National Treasury.
The amount allocated will be released directly to the implementing agencies, based on the objectives and plans of the rice industry roadmap.
RA 11203 further provides 50 percent of the fund to be used as a grant in kind to eligible farmers’ associations, registered rice cooperatives, and local government units (LGUs), in the form of rice farm equipment.
Thirty percent of RCEF will be allotted for the development, propagation, and promotion of inbred rice seeds to rice farmers and the organization of rice farmers into seed growers’ associations and/or cooperatives engaged in seed production and trade.
The law also mandates that 10 percent should be made available in the form of a credit facility with minimal interest rates and minimum collateral requirements to rice farmers and cooperatives.
The remaining 10 percent should be made available for the extension services provided by PhilMech, PhilRice, ATI and the Technical Education and Skills Development Authority for teaching skills on rice crop production, modern rice farming techniques, seed production, farm mechanization, and knowledge/technology transfer through farm schools nationwide. (PNA)
