Press Release - Sponsorship Speech of Senator Cynthia A. Villar for Rice Tariffication Law or Republic Act (RA) No. 11203, Extension and Amendment

Mr. President, esteemed colleagues:

A pleasant day to you all.

Today, I am happy to stand before you to sponsor the Extension and Amendment of Rice Tariffication Law or Republic Act No. 11203 that created the Rice Competitiveness Enhancement Fund or RCEF from tariff collected on imported rice.

It is contained in Committee Report Number 282 entitled, AN ACT AMENDING REPUBLIC ACT NO. 8178 OR THE AGRICULTURAL TARIFFICATION ACT OF 1996," AS AMENDED BY REPUBLIC ACT NO. 11203.

Enacted in 2019, the RTL lifted quantitative restrictions on rice and introduced tariffs to protect local rice producers. The RTL ensured that farmers directly benefit from the liberalization of rice trading by providing P10 billion a year to the RCEF or the RICE FUND up to 2024.

The RCEF provided P5 billion for the free distribution of farm machinery and equipment, P3 billion for free distribution of high quality inbred certified seeds, and P1 billion for credit support and another P1 billion for training of rice farmers.

The collections in excess of the P10 billion funds go to the Rice Farmer Financial Assistance or RFFA under RA 11598. This law took effect on March 5, 2019 and will also expire in 2024. It is to compensate the projected reduction or loss of farm income arising from the tariffication of quantitative import restrictions on rice. The excess tariff collection from rice importations in 2022 amounted to PhP12 billion. The RFFA beneficiaries are farmers tilling two hectares and are registered in the Registry System for Basic Sectors in Agriculture or RSBSA, which as of June 2024, totaled 2.5 M or 91.0 percent of all rice farmers (2.8 M).

In the Senate there are five (5) bills filed on the same topic, and four (4) resolutions.

1. SN. 642 by Senator Marcos amending Republic Act No. 8178 or the Agricultural Tariffication Act of 1996 and proposing the expansion of the functions of the national rice buffer to cover both natural catastrophes and commodity crisis, among others;

2. SN. 1203 by Senator Padilla expanding the purpose of the RCEF from P10Billion to P15Billion annually and earmarking 10% to scholarship, health and other similar benefits;

3. SN. 2601, which I filed