President Marcos signs law supporting RCEF until 2031

With the recent signing by President Marcos of Republic Act 12078, extending the life of RA 11203 or the 2018 Rice Tariffication Law, until 2031, the rice sector would be assured of P30 billion each year for the industry’s development, which is envisioned to stabilize supply and market prices for the grain.

The RTL or Rice Competitiveness Enhancement Fund (RCEF) that comes from tariff collections from imported rice is envisioned to fund high quality rice seeds, mechanization, and training of farmers to help them increase yields and incomes.

Speaking at the signing of the new law, Marcos said RTL, which removed import restrictions on rice, replaced it with a tariff system creating RCEF where proceeds go to the improvement of the rice industry.

“With the expiration of the original six-year plan for RCEF fast approaching, it became clear that we needed to extend and strengthen the program,” Marcos said.

Under RA 12078, the RCEF program was extended to 2031 and its funding increased from P10 billion each year to P30 billion a year.

“This will enable us to do much more for our farmers, ensuring that they have the resources that they need to succeed and to make the rice industry even more competitive,” the president said.

The additional funding will support priority projects like training and extension services, financial assistance to rice farmers tilling up to two hectares of land, expanded rice credit assistance, composting facilities for biodegradable wastes, pest and disease management, soil health improvement, farming support programs on contract farming, and establishment of solar-powered irrigation systems.

The law will also expand the Seed Program and the Mechanization Program so that farmers will continue to have access to high-quality seeds to boost their yield.

“The law also places significant emphasis on reducing post-harvest losses. By preventing up to 375,000 tons of milled rice from being wasted annually, we can help feed an additional 3.4 million Filipinos each year for the next six years – improving food security and making rice more accessible to everyone,” the President said.

RA 12078 also strengthened the DA’s regulatory functions through the creation and maintenance of a database for all grain warehouses and storage facilities so that it can comprehensively monitor the country’s rice reserves. 

The Bureau of Plant Industry will manage the national database.

It also allowed the selling of rice buffer stocks under the National Food Authority to government agencies and the public through Kadiwa outlets of the DA in areas with rice supply shortages or extraordinary increases in rice prices, as determined by the National Price Coordinating Council.

The law also allowed for the replenishment of NFA rice buffer stocks with locally-produced rice or imported rice, if there is an inadequate supply of locally-produced rice.

The RTL amendment also authorized the President, for a limited period or a specific volume, to allow rice importations at lower tariff rates.

In cases of extraordinary decreases in local rice price, the President may suspend rice importation for a limited period or specific volume, until rice supply and prices stabilize.

Marcos said the new law will empower the DA to “take the necessary actions to stabilize the market” to ensure that rice prices are affordable and accessible to all Filipinos.

“Above all, this law empowers our farmers to thrive and to help our country secure a stable food supply. By increasing investments in agriculture, providing more resources, and creating a more competitive rice industry, we are laying the groundwork for a stronger, more self- sufficient Philippines,” he added.

On the sidelines of the ceremony, DA Secretary Francisco P. Tiu Laurel, Jr. said the impact of the investments on the agriculture sector will be felt in one to two years.

“In the long run, it should lower the price of rice because if we can produce more through the increased budgets and the extended duration, it would be more efficient, and we will be producing more per hectare,” Laurel said.

“The expanded RTL will include soil rehabilitation and additional yearly irrigation budget, since our main issues now are irrigation and mechanization.”

The DA will also be required to maintain a rice buffer fund of P5 billion during food security emergencies.

The Federation of Free Farmers National Manager Raul Q. Montemayor said the government solely focusing on lowering rice prices could come at the expense of farmers.

“It was intended for farmers to compensate them for loss of income arising from the lifting of quantitative restrictions on imports, and to help them lower their costs of production to make them more competitive and profitable.”