The European Union (EC) is extending a euro10 million grant (P68 million) to the Philippines in support of its rice sufficiency program as government still aims to hit an 18 million metric ton (MT) rice production level this year despite limited budget.

The Rapid Food Production Enhancement Programme (RFPEP) which is also supported by the International Fund for Agricultural Development (IFAD) will carry out certified seed distribution on around 800,000 hectares in the country under the Rapid Seed Supply Financing Project.

It also has an irrigation component, the Irrigated Rice Production Enhancement Project, to be implemented from 2010 to 2015.

IRPEP will strengthen capability of irrigation associations and develop irrigation and rural infrastructure. It will also develop marketing and post-harvest program for these poor rice production areas.

"This program brings urgent response to prevent an emergency by supplying seeds rapidly to increase paddy production and medium-term irrigaiton rehabilitation," according to IFAD.

Raffaella Boudron, food facility program officer of EU, said in a program launching that EC is co-financing the RFPEP in its aim to help poverty-stricken areas in the country get a relief from the soaring price of commodities.

"This is the first time (for us to help finance this rice sufficiency program), and it's our response to the soaring prices" of goods, said Boudron.

Department of Agriculture (DA) Rice Director Frisco M. Malabanan said that DA remains optimistic of a higher budget for the rice program in 2009-2010 which should at least be at P4.8 billion as being pushed by Sen. Aquilino Pimentel.

This must be higher than the earlier proposed P3.1 billion based on the GAA (General Appropriations Act).