Area
Philippines
Commodity Group
Rice
Commodity
All
Date
14/02/2019
Policy Category
Production
Policy Instrument
Production support, stock-holding policy, government procurement
Description
Signed Republic Act 11203 into law, replacing quantitative restrictions on rice imports with tariffs, among other measures. The Act tasks the National Food Authority (NFA) with maintaining sufficient rice buffer stocks, to be sourced solely from local farmers. Furthermore, it establishes the Rice Competitiveness Enhancement Fund (RCEF), consisting of PHP 10 billion (USD 193.4 million) accrued from tariffs per year, for 6 years to finance interventions in favour of local rice producers, in particular those farmers adversely affected by tariffication. Half of RCEF funds will go to financing interventions geared towards enhancing use of equipment/mechanization, 30 percent to develop, propagate and promote seeds, 10 percent to bolster credit support, and 10 percent to enhance extension services, training and knowledge/technology transfer. A Rice Industry Roadmap is also to be formulated, to outline the Government's support delivery to the local rice sector. The Act's Implementing Rules and Regulations are to be issued in 45 days' time, while the Act itself became effective on 5 March 2019.
Notes
Exchange rate as of 15 April 2019.
