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PhilMech launches rice mechanization component of RCEF

By Lilybeth Ison

May 21, 2019, 6:54 pm

MANILA -- The Philippine Center for Postharvest Development and Mechanization (PHilMech) formally launched on Tuesday its Rice Mechanization Component, under the Rice Competitiveness Enhancement Fund (RCEF), to improve rice production in the country.

The launching was held during the agency's 41st anniversary held at the Central Luzon State University (CLSU) Compound in Muñoz, Nueva Ecija.

Rice mechanization is one of the components of Republic Act No. 11203 or the Rice Tariffication Law. It stipulates the creation of the RCEF that would be funded from rice tariffs collections, with PHP10 billion allocated annually from 2019 to 2024 or a period of six years.

Of the total amount, PHP5 billion was allocated for mechanization of rice farms, PHP3 billion for provision of high-yielding in-bred rice seeds, PHP1 billion for credit support, and PHP1 billion for extension support and education of rice farmers.

“With the formal launching of the projects and programs under RCEF, we at PHilMech welcome the opportunity to spearhead the modernization of the country’s rice industry through mechanization,” said PHilMech Director 4 Dr. Baldwin G. Jallorina.

Equipment such as tillers, tractors, seeders, threshers, rice planters, harvesters, and irrigation pumps will be given as a grant-in-kind primarily for eligible farmers, rice farm associations, and registered rice cooperatives.

“PHilMech also welcomes its collaboration with the Philippine Rice Research Institute (PhilRice), Agricultural Training Institute (ATI), Technical Education and Skills Development Authority (TESDA) , the Land Bank of the Philippines (LBP), and the Development Bank of the Philippines (DBP) in undertaking the different major components under RCEF,” he said.

PhilRice will take the lead in providing high-yielding in-bred rice seeds to farmers while ATI and TESDA will undertake the training of farmers and extension workers. PHilMech will also develop and provide the modules for the training of rice farmers.

Meanwhile, LBP and DBP will support the credit component of RCEF.

RA 11203 removes the quantitative restrictions (QR) on rice imports in place of tariffs, or 35 percent for those coming from Southeast Asia, and 50 percent for outside the region.

Based on studies by the Department of Agriculture DA), the cost of producing one kilo of palay (unmilled rice) in the Philippines is PHP12.72 per kilo while it is PHP6.22 in Vietnam and PHP8.86 in Thailand.

With the successful implementation of the different components under RCEF, Jallorina said the cost of producing palay in the Philippines can be reduced by PHP2 to PHP3 per kilo.

Former Agriculture Secretary Dr. William Dar earlier said that even if the country can source cheaper rice from abroad, it should maintain at least a 95-percent self-sufficiency level for the staple. He explained that there will come a time when even the leading exporters of rice worldwide will experience production shortfalls from the extreme weather events.

Only five percent of worldwide rice supply is traded internationally.

The country’s rice self-sufficiency level hovers between 93 to 95 percent.

“We should be aware that we really need to modernize the country’s rice industry as we cannot rely forever on imported rice to help feed our country’s growing population," Jallorina said.

"That fact also underscores the importance of the different components under RCEF that will make the rice farmers competitive,” he added. (PNA)

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