Congress seeks P6 B for farmers

Both chambers of Congress are seeking at least P6 billion in supplemental budget to compensate for farmers’ losses following the deluge of rice imports that dampened local palay prices.

Sen. Francis Pangilinan has filed Senate Bill 1191 which proposes a P6-billion budget for direct cash transfers to vulnerable rice farmers who are planting one hectare or less.

This will serve as compensation for the reduction or loss of farm income arising from the influx of imported rice.

At the House of Representatives, Quezon City Rep. Christopher Belmonte also filed House Bill 5629 as a counterpart measure, saying that the cash assistance would encourage rice farmers to continue farming.

“The life and livelihood of our farmers are in peril, and we should treat this as an emergency situation that needs immediate attention,” Pangilinan said.

“The cash transfer will give them a lifeline to continue farming while we try our best to fix the law,” he added.

Republic Act 11203 or the Rice Tariffication law led to the opening up of the market to cheap rice imports, causing farm gate prices of palay in several rice-producing areas to plunge.

More than eight months since the passage of the law, palay prices have plunged to as low as P7 to P10 per kilogram in some provinces.

There has also been a disparity between the decline of palay prices and the actual rice prices in the retail market.

The drop in palay prices has resulted in huge income losses for rice farmers now estimated around P60 billion. Losses are projected to double by year-end.

Pangilinan said the Department of Budget and Management will release the supplemental fund directly to the Department of Agriculture (DA), which shall make available the fund to the farmers. The fund will be effective until Dec. 31, 2020.

Earlier, both the Senate and the House approved on third and final reading their respective bills extending the validity of the 2019 budget until Dec. 31, 2020.

This would allow agencies to spend funds for capital outlays and maintenance and other operating expenses in the 2019 budget until next year.

House minority leader Bienvenido Abante Jr., meanwhile, urged yesterday his colleagues to scrap the law allowing unrestricted importation of rice, saying it was not benefitting farmers and consumers. –