SENATOR Cynthia Villar has called for the sustained distribution of the fund for local rice farmers when the proposed rice tariffication law is enacted.
Villar, chair of the Senate Committee on Agriculture and Food, on Thursday stressed that a “package of support” for farmers who may be distressed comes with the government’s impending implementation of the measure that replaces the quantitative import restrictions on rice with tariffs.
The senator, an author and sponsor of the proposed act, said the bill creates the Rice Competitiveness Enhancement Fund (RCEF), or rice fund, amounting to at least P10 billion every year.
A certified measure, the bill has been submitted for the President’s signature after Congress ratified it in the bicameral conference committee report last week.
“When cheap rice imports start flooding the market, a program that will provide preferential attention to rice farmers, cooperatives and associations adversely affected by the tariffication should be established,” Villar said.
“We will be doing our farmers a great disservice if we let them face the challenges of a tariffied system without support mechanisms in place,” she added.
The RCEF, Villar noted, would also be the government’s response to the June, 2017 expiration of the quantitative restriction (QR) on rice importation under the agreement with the World Treaty Organization (WTO).
Without the rice fund, the country’s rice farmers will lose, the senator said.
Under the rice tarrification bill, P10-billion rice fund shall be allocated to the Philippine Center for Post Harvest Development and Modernization (PhilMech) to provide farmers with rice farm machineries and equipment (50 percent); and to the Philippine Rice Research Institute (PhilRice) to be used for the development, propagation and promotion of inbred rice seeds to rice farmers, and the organization of rice farmers into seed growers associations engaged in seed production and trade (30 percent).
Ten percent, meanwhile, will be made available in the form of credit facility with minimal interest rates and with minimum collateral requirements to rice farmers and cooperatives. It shall be managed by the Land Bank of the Philippines and the Development Bank of the Philippines.
Also 10 percent will be set aside to fund extension services by PhilMech, Agricultural Training Institute, 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.
Aside from the P10 billion annual RCEF, excess rice tariff revenues shall be released to the Department of Agriculture and shall be used for providing direct financial assistance to rice farmers as compensation for the projected reduction or loss of farm income arising from the tariffication. (Vanne Elaine Terrazola)
