Lawmakers: Use P29 B from CCT to help farmers

House leaders are pushing for the use of some P29 billion from the government’s conditional cash transfer (CCT) program to purchase palay from farmers severely affected by the implementation of Republic Act 11203 or the Rice Tariffication law.

Deputy Speakers LRay Villafuerte and Mikee Romero yesterday sought legislative action for the utilization of the fund intended as rice subsidies for CCT beneficiaries of the Department of Social Welfare and Development (DSWD) for the procurement of palay from farmers this harvest season.

House Joint Resolution No. 16 filed by Villafuerte seeks to “authorize the use of the rice subsidy as provided under the 4Ps in the General Appropriations Act (GAA) for the purchase of palay from farmers, mandating for the purpose the DSWD to buy palay from the local farmers and distribute rice subsidy in the form of actual rice, instead of cash assistance, to the qualified beneficiaries.”

The representative of Camarines Sur 2nd district suggested that the government purchase unmilled rice from local farmers and process it for distribution to the 4Ps beneficiary-families instead of cash grants.

“In order to help the local farmers, the DSWD is in a position to distribute the rice subsidy under the 4Ps program in the form of actual kilos of rice, instead of cash grant. The DSWD is also in the position to help in the buying of palay from farmers, which it can coordinate with the Department of Agriculture (DA). It shall then proceed in distributing rice to the 4Ps beneficiaries who shall receive their rice subsidy from DSWD-designated outlets,” he stressed.

The rice subsidy in the form of cash under the program is given to beneficiaries through their existing Land Bank of the Philippines (LandBank) account or cash cards, while those without cash cards or automatic teller machine (ATM) cards can get their money through scheduled or coordinated pay-out through the DSWD.

On top of the CCT grant of P300 per month received by the DSWD’s 4Ps beneficiaries, they also get P600 a month in cash for the purchase of 20 kilos of rice. Under the 2019 budget, the allocation for rice subsidies amounts to P28.51 billion and is the same amount proposed for the following fiscal year.

Villafuerte explained that immediate action is necessary to raise farmgate prices of palay this main harvest season, especially after the National Food Authority (NFA) reported that its warehouses are already full.

The NFA reported that it has over 200,000 metric tons of imported rice in its custody as of Aug. 22 and was able to procure locally 360,657 bags of palay at 50 kilos per bag, equivalent to 209,525 MT.

“The problem of oversupply is expected to exacerbate during the period from September to October which is the peak palay harvest season,” Villafuerte said.

A similar measure was filed and already approved on second reading by the Senate earlier this week. The Senate’s version, however, stated that the 4Ps rice subsidy fund only has P6.97-billion undisbursed allocation.

Help needed, now

Romero supported the proposed measure, citing the urgency to address the needs of farmers.

“We should help and protect our farmers and their families who are now in dire need of help from the government. This is anyway the purpose of the 4Ps program – to alleviate our needy and underprivileged countrymen from poverty,” stressed the representative of 1-Pacman party-list.

Romero, an economist, also called on the NFA to come up with urgent measures to address the rice crisis while it awaits P10-billion funding for palay purchase from over two million rice farmers in the proposed budget for next year.

He said the agency could opt to sell its rice stocks, both imported and local, and also use its credit line with LandBank and other banks.

Several lawmakers, including Leyte 4th district Rep. Lucy Torres-Gomez and Cavite 2nd district Rep. Strike Revilla, also approved the measure.

“Farmers have a hard time competing in the food marketplace. In Ormoc City, we are giving them support to cope with this crisis,” Gomez revealed.

“We should always protect our local farmers. Buying directly from our farmers would benefit them,” Revilla added.

Last week, House members from different blocs filed House Joint Resolution No. 18 seeking to provide the NFA with a P15-billion supplemental budget solely for the purpose of buying at least 750,000 metric tons of palay from local farmers at a farmgate price of P20 per kilo.

The measure seeks to compel the NFA to sell the rice purchased from local farmers at P27 per kilo.

But the House was unable to tackle the proposed measure before it ended its session last Wednesday. It is expected to deliberate on it upon resumption of session next month.