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P9-billion Annual Mechanization Fund Set to Elevate Philippine Rice Production


MANILA – The Philippine Center for Postharvest Development and Mechanization (PHilMech) announced on Tuesday its endorsement for a proposed PHP9-billion annual allocation for the mechanization program under the Rice Competitiveness Enhancement Fund (RCEF):The Philippine Center for Postharvest Development and Mechanization (PHilMech) announced on Tuesday its endorsement for a proposed PHP9-billion annual allocation for the mechanization program under the Rice Competitiveness Enhancement Fund (RCEF), aiming to significantly increase the nation’s rice yield. This move is set to expand the distribution of agricultural equipment to more rice farms across the country, potentially increasing mechanization coverage to approximately 44 percent by 2031.

According to Philippines News Agency, PHilMech Director Dionisio Alvindia emphasized the importance of the increased funding, which surpasses the previous PHP5 billion yearly allotment under the Republic Act 11203 or the Rice Tariffication Law. Since the law’s enactmen
t in 2019, the mechanization program has facilitated the distribution of various types of farm machinery to farmers cooperatives and associations (FCAs), although coverage had reached only 14 percent of rice farms. The proposed boost in funding is expected to cover 30 percent more rice farms, thereby reducing the country’s dependency on rice imports.

The extension of the RCEF-Mechanization program also promises the establishment of more modern drying and milling facilities, or rice processing centers. This will enable the PHilMech to bid, procure, and distribute an increased amount of farm machinery to FCAs and provide more extensive training to FCAs and local government units (LGUs) on how to utilize these technologies effectively.

Alvindia highlighted the transformative impact of mechanization on the Philippine agriculture sector. He noted that while many Filipino rice farmers were initially hesitant to adopt modern farming methods, the pressing shortage of farm labor in various regions has underscored th
e necessity of mechanization. The provision of modern equipment is expected not only to enhance productivity but also to empower FCAs and LGUs to market their milled rice directly at the retail level or to large institutions, fostering greater economic opportunities.

As of March, PHilMech has reported that at least 6,385 FCAs, encompassing nearly one million members, have benefited from the distribution of essential farm machinery, which includes technologies for land preparation, crop establishment, harvesting, and threshing, as well as drying and milling technologies. This initiative has obligated at least PHP24.9 billion of the Rice Fund for the procurement of these agricultural tools.

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