THE national government still owes Filipino rice farmers P9 billion which will fund initiatives aimed at improving their competitiveness under the new trade regime this year, Agriculture Secretary Emmanuel F. Piñol said on Thursday.
Piñol also said the P5 billion released to the Department of Agriculture (DA) last December 28 was not part of the P10-billion Rice Competitiveness Enhancement Fund (RCEF).
The DA chief said he was requested by the National Economic and Development Authority (Neda) to consider the P5 billion as part of the RCEF, which should get an appropriation of P10 billion annually. The set-up of the RCEF was mandated by Republic Act 11203 to cushion the impact of a more open rice trade regime on farmers.
Piñol said, however, that he cannot give in to the request of the Neda as he would violate the law. He noted that under the law, he is the only government official accountable for the use of RCEF.
He said he has already returned the P1 billion of the P5 billion to the Land Bank of the Philippines and Development Bank of the Philippines, as requested by the Neda.
Piñol said he agreed to do so since the amount will also be used for cheap credit under the RCEF.
“The P5 billion was not part of RCEF and our records will show, the Saro [Special Allotment Released Order] will show that it was not part of RCEF but instead support to the rice program of the DA,” he said in an interview with reporters on Thursday.
“We just agreed to return the P1 billion because it had the same purpose which is for credit. But the remaining P4 billion cannot be considered as part of the RCEF,” he added.
The agriculture chief said Trade Secretary Ramon M. Lopez agrees with the DA’s position that the P5 billion released last year was not part of the RCEF.
Piñol said he will hold a dialogue soon with other government officials to settle the issue over the RCEF.
The Department of Budget and Management has remained mum on the RCEF since the BusinessMirror broke the story on the confusion over the fund. The DBM has yet to respond to the BusinessMirror’s query. Last Monday, Neda Assistant Secretary Mercedita A. Sombilla said the DBM has committed to provide the DA P5 billion under the RCEF by the third quarter.
“So once there are government savings—but whether there are savings or not—that P5-billion [RCEF fund] has to come because that is what the law says. So, it’s really a commitment,” Sombilla said.
Image credits: Bernard Testa