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The House of Representatives approved on Wednesday the signing of President Duterte the draft law on the pricing of rice and the draft law on the coconut tax fund after ratifying the reports of the bicameral commission on the two measures .
Luis Raymund F. Villafuerte Jr., representative of Camarines Sur, said that the Rice Competitiveness Improvement Fund (RCEF) under the Rice Pricing Act would help boost agricultural productivity and improve productivity. to remedy in part the tightening of rural credit which reached 360,000 billion pesos.
Villafuerte said only 10 percent of its $ 10 billion allocation, or $ 1 billion, would be set aside for credit to farmers and cooperatives. But, he said, this would somehow help farmers access credit facilities that were denied to them by the banking sector, despite a law requiring banks to allocate a specific portion of their loans. credit facilities for the agricultural sector.
"It is only 1 billion pesos offered at preferential rates to farmers and cooperatives. But alongside the other features of the Fund, the agriculture sector would finally get the assistance it needed to provide Palay farmers directly with the facilities they need to increase their incomes and make them competitive. " he declares.
The report of the Committee of the Bicameral Conference on the Rice Pricing Bill aims to replace quantitative restrictions on rice imports (QRs) with tariffs and to eliminate unnecessary government intervention in the market for rice. rice. Mr Villafuerte, one of the authors of the bill, said that this measure, certified urgent and priority by President Duterte, would boost agricultural productivity and curb inflation.
Under the measure approved by a bicameral panel, the RCEF will have a minimum annual allocation of 10 billion pesetas over six years, and customs revenue exceeding 10 billion dollars of rice imports will be allocated to agricultural sector by the Congress, on the basis of a series of programs in the law on rice pricing.
The proposed fund will be allocated as follows: 50% for the assistance of farmers' associations, registered rice cooperatives and local government entities in the form of rice equipment, to be implemented by the Philippine Development Center and post-harvest mechanization (PhilMech); and 30 percent for the development, multiplication and promotion of inbred rice seeds among rice farmers and organizations, to be implemented by the Philippine Rice Research Institute (PhilRice).
The 10 per cent will take the form of preferential credits for rice farmers and cooperatives run by the Land Bank of the Philippines and the Development Bank of the Philippines; The remaining 10 per cent is for extension services to educate rice farmers in modern methods of agriculture, seed production and agricultural mechanization, to be administered by PhilMech, PhilRice, the Agricultural Training Institute, and the Agriculture Authority. technical training and skills development.
Villafuerte said that the amount allocated for low-interest loans to farmers seems to be low compared to the credit deficit in the agricultural sector which now stands at 367 billion pesos, according to the data of Bangko Sentral ng Pilipinas.
"The lack of credit is one of the reasons for the slow growth of our agricultural sector," Villafuerte said. "The BSP should find ways to deter banks from being tricky in granting credit to farmers."
Coconut tax
The Chamber also approved with the President the draft law on the development of coconut producers and industry, which guarantees the use of the coconut collection fund for the benefit of all nut producers. of coconut.
The tax refers to a 40-year-old tax on coconut growers, whose fund was supposed to be used to develop the coconut industry.
In September, the House overwhelmingly voted in third and final reading on Bill 5745, which establishes the Coconut Development Trust Fund for Farmers and Industry.
Karlo Alexei B. Nograles, representative of Davao City and now secretary of the Cabinet, said the expected signing of the law would institutionalize the mechanism necessary for "prudent and appropriate management" of the coconut tax funds.
The bill provides for the establishment of the Coconut Industry Development Trust Fund and coconut producers, consisting of the trust's principal and trust income. It provides that no part of the trust fund will be paid into the general fund of the national government.
The bill mandates the Presidential Commission on Good Governance (PCGG) to conduct a complete accounting and inventory of all assets taken from coconut production.
In addition, the Audit Commission (COA) is mandated to audit the inventory of coconut tax assets prepared by the PCGG and submit to the Coconut Famers and Industry Trust Fund Committee the report. initial audit within 120 days of completion.
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