DA reviewing national rice program’s voucher system

The Department of Agriculture (DA) said Tuesday the voucher system under the National Rice Program is under review to implement changes and address issues concerning payouts.

In a statement, Agriculture Secretary Francisco Tiu Laurel Jr. said that the voucher system needs to be fixed “to ensure government funds are fully utilized, farmers get full benefits, and rice production is substantially increased.”

Under the National Rice Program, the DA distributes vouchers to farmer-beneficiaries which could be exchanged for farm inputs such as fertilizers and rice seeds at DA-accredited merchants.

However, Tiu Laurel said many merchants refuse to honor vouchers as they have not been paid, with total payables reaching P892 million. He said some payables date as far back as 2021.

The Agriculture chief added that bulk of the arrears amounting to P849 million are payables from the recently concluded 2023-2024 Dry Season implementation.

He said payment delays are often due to incomplete documentary requirements.

With this, Tiu Laurel said the DA, in partnership with the Development Bank of the Philippines (DBP), is pushing for new processes for settling accounts with accredited merchants.

The voucher system serves as a major channel for the DA’s distribution of the P22.9 billion budget this year for farm inputs, including hybrid rice seeds, organic and inorganic fertilizers, as well as funds for the use of drone technology in rice cultivation.

About P10 billion in inputs and assistance will be delivered to farmers via the voucher system, according to the Agriculture chief.

Other modes allowed under the 2024 General Appropriations Act (GAA) for distribution, meanwhile, include the use of intervention monitoring cards (IMC) or e-wallets used for distributing P5,000 assistance to farmers under the Rice Tariffication Law, and direct distribution of inputs that DA regional offices are authorized to procure from qualified suppliers.

Tiu Laurel said changes to the voucher system may include secure physical vouchers that may not be duplicated. This will be pilot-tested soon to ensure that farmers get the inputs needed to maximize rice yields, increase grain supply towards self-sufficiency levels, and consequently, increase farmers’ income.

Moreover, the DA chief said the distribution mode that best suits rice farmers will be used by the agency.

Likewise, Tiu Laurel said that determining which rice seeds are best for certain areas will be done through a process of holding Hybrid Rice Derbies involving seed companies and agriculturists.

“By doing this, we will not only increase farm output but optimize the use of post-harvest and milling facilities to reduce wastage. It will increase farm yield, boost financial returns for farmers, and substantially bolster supply that could eventually bring down food cost for consumers,” he said. — VDV, GMA Integrated News