The Department of Agriculture (DA) is optimistic about the recovery of local palay production in 2025, following a challenging year marked by natural disasters. In a statement released on January 8, 2025, the DA highlighted the government’s efforts to enhance local rice output, aiming to return to a production level of 20 million metric tons (MMT). This optimism comes after a year where production was hampered by the El Niño phenomenon, multiple typhoons, and the eruption of Mt. Kanlaon in 2024.
DA spokesperson Arnel De Mesa emphasized that a strong local production would lead to a decrease in rice imports. He noted that as of the end of 2024, rice import arrivals reached a record high of 4.68 MMT. However, De Mesa stressed the importance of focusing on boosting local production, which is supported by the amended Rice Tariffication Law (RTL) extended until 2031. This law has significantly increased the Rice Competitiveness Enhancement Fund (RCEF) to PHP30 billion, tripling the previous allocation.
The RCEF will be utilized to support various initiatives, including PHP15 billion for extension and training programs, financial assistance, credit, soil improvement, solar-powered irrigation, and water impounding projects. Additionally, PHP9 billion is allocated for farm mechanization, and PHP6 billion for providing high-quality rice seeds.
The DA also announced the launch of the ‘Agri-puhunan at Pangtawid’ program in February, aimed at benefiting 100,000 farmers. This program will offer funding and insurance mechanisms, as well as contract farming opportunities, to help stabilize and enhance local rice production.