The government was able to raise P14 billion from tariffs on rice imports during the first year of the implementation of the rice tariffication law (RTL).
During the RTL’s anniversary celebration in Urdaneta City, Pangasinan, Department of Finance (DOF) Executive Assistant Renzo Enrico Blanco said the government collected P12.31 billion in 2019, and P1.71 billion as of Feb. 14 this year.
“The collection last year exceeded the P10 billion allocations for the Rice Competitiveness Enhancement Fund (RCEF) by P2.31 billion,” Blanco, who represented DOF Secretary Carlos Dominguez III, said.
Department of Agriculture (DA) Secretary William Dar said of the total P2.31 billion excess in the collection last year, P1.31 billion will be used to aid farmers while the remaining P1 billion will be set aside for the crop insurance of all rice farmers who are members of farmers’ cooperatives and associations (FCAs).
“All members of farmers’ cooperatives and associations are automatically insured.”
“All members of FCAs are automatically insured,” Dar said.
The agriculture chief also refuted the claim of the Federation of Free Farmers that farmers have incurred a P68-billion loss due to the RTL’s implementation.
The agriculture head said the Philippine Institute for Development Studies (PIDS) has reported that during the first year of the RTL’s implementation, there was a loss of P8.2 billion for farmers, but not P68 billion as claimed by the farmers’ group.
“There are P8.2-billion losses of our farmers but consumers were able to save P4.9 billion due to the low price of rice in the market. So, the actual net loss of our farmers who are also consumers is actually only P3.3 billion,” he said.
Dar added the farmers’ net loss was compensated through the different financial aid programs under the RCEF, including the Survival and Recovery Assistance (SURE Aid) program and the Rice Farmer Financial Assistance (RFFA) Program.
Based on data from the Land Bank of the Philippines, some 163,527 farmers all over the country have availed of the SURE Aid program amounting to P2.48 billion.
Through the program, each farmer was given P15,000 worth of loan assistance payable in eight years with a six-month grace period at no interest and collateral.
While 23,377 small rice farmers who are tilling 0.5 hectares to 2 hectares of land received P5,000 each under the RFFA program, or a total of P116.89 million.
“We are giving the farmers assistance in every form so basically there are no losses,” he said.
Dar also cited the benefits of the RTL, such the as availability of several rice grades to choose from, free trade or the promotion of fair competition in the market, and making rice a non-driver of inflation.
He also assured the supply of rice in the country is sufficient within five months amid the threat of the coronavirus disease 2019 (COVID-19) on the importation of goods to the country even calling it “extreme.”
“We will again open importation after the main harvest so we will have more supply come the rainy season.”
“We will again open importation after the main harvest so we will have more supply come the rainy season,” Dar said.
Meanwhile, the Philippine Center for Postharvest and Mechanization (PhilMech) said the initial distribution of farm equipment, which is also a component of RCEF, is set in April this year.
Senator Cynthia Villar said the 2019 budget for the farm mechanization was already released on Monday by the Department of Budget and Management.
“The loans, procurement of high-yielding seeds, were first funded. And since there was a change of DA Secretary last year, there was a problem with the documents but it is now fixed. The mechanization is underway,” Villar said.
The veteran legislator added she plans to file an extension of the RCEF if it reaps positive results after six years of its implementation.
Meanwhile, Technical Education and Skills Development Authority Secretary Isidro Lapeña said some 25,000 farmers nationwide are undergoing training as part of the preparation for the farm mechanization.
“It is important that they know how to use their equipment and how to fix it in case it encounter problems for more efficient work in their fields and to lower the cost of labor,” Lapeña said.