Finance Secretary Ralph Recto said Monday the government is actively working with Congress to secure additional resources for the Rice Competitiveness Enhancement Fund (RCEF) as part of its broader strategy to bolster the agricultural sector.
Recto disclosed this initiative at the EJAP-SMC Economic Forum 2024, highlighting the government’s commitment to supporting farmers and improving global production and competitiveness.
“The substantial increase in this year’s agriculture budget, reaching P221.7 billion, affirms our commitment to supporting farmers and investing in crucial initiatives like irrigation, farm-to-market roads, agricultural machinery and research and development,” Recto said.
He emphasized the sizable increase in the agriculture budget for 2024 of 27 percent to P221.7 billion, intended to be channeled into various initiatives.
The Department of Agriculture (DA) plans to download P20 billion from the RCEF by September 2024 to provide crucial support to farmers.
The RCEF, established under Republic Act 11203 or the Rice Tariffication Law, allocates P10 billion from rice import tariffs for farm mechanization and input support. The law replaced quantitative restrictions on rice imports with a tariff-based system.
Recto said to ensure food security, which is a top priority of President Ferdinand Marcos Jr., the government is sparing no effort to address the current rice-driven inflation due to its price increases in the global market.
Rice accounted for 53.5 percent of the overall inflation for average consumers in June 2024, while it had a bigger share of 79.6 percent for those in the bottom 30 percent of households.
“Our mandate is clear: we must act swiftly to alleviate this burden that disproportionately affects the vulnerable population,” he said.
He said that by reducing the tariff on imported rice to 15 percent from 35 percent, retail rice prices could go down by an average of 10 percent or P5.0 per kilo for the rest of the year.
Recto said the government would exhaust its power to ensure that the next generations of Filipinos would not inherit the same challenges of today and called on them to continue fair and insightful reporting of the Philippine economic story to help widen public economic literacy.
“Allow me to thank all of you for your dedication to truth, and for providing proper context that enables our people to fully appreciate the long-term gains of our actions,” Recto said.
With the theme “Future Proofing the Philippine Economy: Strategies and Policies”, Recto thanked the press for helping the government explain the critical aspects of its decision-making process that shape the future of the country.
