President Ferdinand R. Marcos Jr. signed a new law on Monday amending the Rice Tariffication Law to extend funding for rice industry modernization and to triple the allocation aimed at enhancing food security and lifting millions of Filipinos who depend on rice cultivation out of poverty.
Republic Act 12078 amends Republic Act 11203, also known as RTL, to extend the Rice Competitiveness Enhancement Fund to 2031. The amended law also increases annual allocation for RCEF, also referred to as Rice Fund, to P30 billion from P10 billion to bolster support for initiatives such as high-quality seed production, farm mechanization, training and extension, improving soil health, pest and disease management, and water management. RCEF are duties collected from imported rice.
Agriculture Secretary Francisco P. Tiu Laurel Jr. expressed gratitude to Congress for extending RCEF, which was set to expire this year. He stressed that the new law is an investment not only in agriculture but also in the nation’s economic future.
“The increased funding to enhance the rice industry’s competitiveness will boost both rice yields and farm output, benefiting millions of farmers and their families, as well as millions of poor Filipino consumers who need more affordable rice,” Sec. Tiu Laurel said.
“Improving incomes from rice farming will attract a new generation of farmers to replace our aging workforce, helping to fulfill President Marcos’ vision of a food-secure Philippines, where no Filipino goes hungry,” he added.
Under the new law, P30 billion will be allocated annually for RCEF. Of this, P6 billion will go towards providing high-quality rice seeds, P9 billion for farm mechanization, and P15 billion will be alloted for extension and training programs, rice farmers financial assistance, credit , soil improvement, solar-powered irrigation systems, and water impounding projects.
The Rice Fund aims to increase the production and distribution of certified inbred rice seeds. Starting 2027, the Philippine Rice Research Institute (PhilRice) is expected to be capable of distributing around 5.5 million bags of rice seeds annually, a 76 percent increase from current levels. This expansion will cover 2.54 million hectares and is expected to increase average yields by up to 21 percent in both dry and wet seasons, potentially feeding more than half of the population at a per capita consumption rate of 120 kilos.
The mechanization program, managed by the Philippine Center for Postharvest Development and Mechanization, will provide free agricultural machinery to all rice-producing provinces. The initiative aims to reduce postharvest losses to as much as 8 percent from the current 5 percent, resulting in savings that are enough to feed about 3.4 million for a year. Once fully implemented, mechanization will cover 1.73 million hectares, improving productivity, lowering farming costs, and enhancing efficiency.
The new law also strengthens the Department of Agriculture’s regulatory functions through the creation and maintenance of a database for all grain warehouses and storage facilities. This will allow comprehensive monitoring of the country’s rice reserves.
Additionally, the law allows the National Food Authority (NFA) to sell rice buffer stocks to government agencies and the public, through KADIWA ng Pangulo centers, in areas experiencing rice supply shortages or extraordinary price increases. It also permits the replenishment of NFA rice buffer stocks with either locally produced or imported rice in case of insufficient supply of locally produced rice.
The President is also empowered under the new RTL to authorize rice imports at a lower tariff rate for a limited period and/or specific volume. In cases of extraordinary drops in local rice prices, the President may suspend rice imports for a limited time and/or volume until rice supply and prices stabilize. ###
