THE Department of Agriculture (DA) on Monday vowed to disburse the remaining P20 billion of the Rice Competitiveness Enhancement Fund (RCEF) after questions on the department’s spending of the six-year fund were raised during the plenary debate on its 2022 proposed budget.
Agriculture Secretary William Dar made a commitment after Marikina Rep. Stella Luz Quimbo noted the slow disbursement of the RCEF amid the Covid-19 pandemic and amid the impact of Rice Tariffication Law (RTL) to local farmers.
RCEF is a six-year P10-billion rice production development program created under the RTL law, or Republic Act 11203, which deregulated the rice industry. The law mandates that P5 billion would be allocated for farm mechanization, P3 billion for inbred seed distribution, P1 billion for credit and P1 billion for extension.
Documents provided by Quimbo showed that Notice of Cash Allocation issued regarding RCEF has reached P25.9 billion as of end August.
However, Quimbo said the disbursement made by the agencies concerned in implementing the RCEF only reached P10.8 billion since the program started three years ago.
In 2019, Quimbo said the government’s rice tariff collection has reached a total of P12.1 billion from rice importation; of which the P10 billion was allocated to the RCEF regular programs, and the remaining P2.1 billion was appropriated to rice farmers’ financial assistance under the GAA of 2021.
In 2020, she said the total collection reached P15.4 billion. Of the total collection, P10 billion was allocated to the RCEF regular programs. The remaining P5.4 billion was appropriated to the rice farmers financial assistance.
During the hearing of DA’s proposed P91 billion budget for 2022, Secretary Dar through House Committee on Appropriations Vice Chairman Teodorico Haresco Jr. said the whole amount would be utilized this year.
“We now have the personal commitment from good Secretary Dar that he will do it within the year,” said Haresco, also the sponsor of the DA’s budget.
According to Haresco, the funding has already been downloaded to the Philippine Center for Postharvest Development and Mechanization (PhilMech).
PhilMech, an attached agency of the DA, failed to complete by April the delivery of all farm equipment financed by the 2019 and 2020 RCEF.
However, PhilMech assured beneficiaries of the mechanization program that the machines pending under the 2019 RCEF would be distributed, and that delivery of equipment funded by the 2020 RCEF would be completed by the first quarter of this year.
Data showed the government distributed 13,441 items of farm mechanization as of September 12, 2021. The government is also targeting to deliver another 6,688 units.