DBM releases over P400M for Q1 rice competitiveness fund

THE Department of Budget and Management (DBM) has released over P400 million to cover the first quarter funding requirements of the Rice Competitiveness Enhancement Fund (RCEF).

Budget Secretary Amenah Pangandaman approved the release of a total of P455.58 million to the Department of Agriculture (DA), Land Bank of the Philippines, Development Bank of the Philippines, and Philippine Rice Research Institute to operationalize the RCEF for the January to March 2024 period.

Pangandaman green- lit the release of Notices of Cash Allocation (NCAs), on Jan. 29, amounting to a total of P431.79 million to cover the RCEF’s operating requirements of various programs of the said three government- owned corporations.

Broken down, the corresponding amounts were released to the following: * Landbank – P133,648,000 * DBP – P120,000,000 * Philippine Rice Research Institute – P178,141,000

Moreover, the Budget chief also released P23.79 million to the DA to cover its operating requirements for the program in the first quarter.

The RCEF is intended to improve the productivity and competitiveness of local rice farmers and increase their income by providing farm machinery and equipment, rice seed development, propagation, and promotion, expanded rice credit assistance, and rice extension services.

“In our quest for food security for all under President Ferdinand R. Marcos Jr.’s vision of Bagong Pilipinas, we will continue to support programs that boost the local production of major agricultural commodities, including rice, which is a staple food in almost every Filipino household,” said Pangandaman.

Republic Act (RA) 11203 or the Rice Tariffication law ( RTL) provides for the creation of the RCEF which shall consist of an annual appropriation of P10 billion for the next six years following the enactment into law of the RTL in 2019.

The fund will be used to provide farm machinery and equipment, credit assistance, seed development, and training to increase local rice f armers’ yield and competitiveness.

The RCEF is divided among four key programs: namely, rice farm mechanization (P5 billion), seed propagation (P3 billion), rice credit assistance ( P1 billion), and extension services ( P1 billion).

Cash remittances from Filipinos abroad coursed through banks amounted to $33.5 billion in 2023, according to the Bangko Sentral ng Pilipinas.

Budget Secretary Amenah Pangandaman says in our quest for food security for all, “we will continue to support programs that boost the local production of major agricultural commodities, including rice, which is a staple food in almost every Filipino household.”