There is a wealth of positive news today that could potentially lead to a decrease in rice prices. However, it all hinges on the seriousness of the government in implementing necessary measures. The solution is rather simple – the government should bear the cost of fertilizers, chemicals, and hybrid seedlings for our rice farmers, following the model of countries like Thailand and Vietnam.
In Vietnam, farmers spend only P5 to produce a kilo of palay, while Thai farmers earn a higher P8 per kilo. Additionally, both countries have embraced “mechanized” farming techniques to minimize losses in their rice production. Currently, the landed cost of Vietnamese rice is around P29 to P31 per kilo, which is significantly lower compared to Thai rice.
Unfortunately, the situation in our country is pathetic, with our provincial rice farmers left to fend for themselves during the planting-harvest seasons. However, there are glimmers of hope, particularly in some rice-producing provinces. For instance, farmers in Negros Occidental recently demonstrated that local rice can be sold at P25 per kilo in the Food Terminal Market of Bacolod City during the opening day of Bigas ng Bayan. This achievement was made possible through the DAGYAW project initiated by the provincial government of Negros in collaboration with the Federation of Irrigators of Central Negros-Bago River System. The project focuses on implementing sustainable irrigation systems and providing support to local farmers. The cost of production for these farmers amounts to around P12.50 per kilo of palay.
Similar progress can be seen on a larger scale in Nueva Ecija and Isabela, where farmers benefit from irrigation water from Pantabangan and Magat dams. Former Nueva Ecija Congressman Rene Diaz informed me that farmer costs there are already within the range of P12 to P13 per kilo of palay. If the government effectively subsidizes fertilizers, pesticides, irrigation, and seedlings through the P19-B benefits from the Rice Tariffication law, farmers could potentially bring down their costs to P10 per kilo of palay or even lower. In turn, this could result in rice prices as low as P20 per kilo in our markets. Imagine if we could reach Thailand’s output levels of P8 per kilo of palay – we could potentially have rice priced at P16 per kilo.
It’s baffling to think that our past administrations have not done enough to support our local farmers. The infamous Jokjok fertilizer scandal is always a stark reminder of this. Globally, countries subsidize their farmers not just for economic gain but also to ensure food security. It makes little sense why pork barrel funds exist when they could be used to provide free fertilizers, pesticides, hybrid seedlings, and modern post-harvest facilities to our farmers.
Thankfully, recent efforts by Nueva Ecija Governor Aurelio Umali and Isabela Governor Rodolfo Albano III to directly assist their rice farmers in lowering production costs are starting to yield positive results. Local government units (LGUs) are pushing out rice cartel buyers, ensuring better income for their farmer constituents. The National Food Authority (NFA) is buying palay at P21 per kilo as ordered by the Philippine Business Bank Movement, and the Isabela LGU is adding an additional P2 per kilo, bringing the price to P23. This has brought great joy to our palay farmers since the production cost of palay is P13.
We are witnessing small but significant changes in rice farms today. LGU employees are providing assistance to local farmers in filling out loan applications through Land Bank and DBP and promoting year-round planting. Governor Albano has distributed over a thousand hauling trucks to each barangay in Isabela as part of their efforts to modernize farming. This means that farmers of rice, onions, and other agricultural products can now stay on their farms and be freed from transportation costs. Eventually, this will lead to cheaper rice and food, the end of smuggling, and the possibility of becoming an exporting nation.
It’s worth mentioning that as an initial move to truly help our farmers, the President has forgiven the debts of over 610,000 agrarian reform beneficiaries worth P57 billion under the New Agrarian Emancipation Act. These farmers, who cultivate 1.173 million hectares of land, are now free from debt, will own their land, and have the opportunity to build sustainable farms with increased income.
Another positive development in lowering prices is the President issuing EO 41, which stops the collection of pass-through fees by certain LGUs on vehicles transporting goods. These fees can range from P800 to P2,000 for monthly/yearly stickers, or penalties of P200 to P1,000 per violation. According to the Department of Trade and Industry (DTI), cargo trucks spend around P30,000 per year on these additional charges alone. Furthermore, it appears that corrupt checkpoints will be dismantled by the Philippine National Police (PNP) and Department of the Interior and Local Government (DILG), which will undoubtedly have an impact on the landed price of rice in Metro Manila public markets.
I also had a conversation with Julius Corpuz, spokesperson for the Toll Regulatory Board (TRB), who informed me that all toll expressway operators are now in agreement with the proposed exemption from toll rate increases for truckers transporting agricultural goods such as rice, corn, and vegetables. This proposal originated from the Inter-Agency Committee on Inflation and Market Outlook (IOC-IMO) Sub Committee on Non-Food Inflation. However, the Alliance of Concerned Truck Owners and Organizations (ACTOO) believes that all cargo trucks carrying essential goods for economic activities should also be exempted.
Overall, the situation is not all doom and gloom. We should all come together and prioritize the modernization of our agriculture sector and provide subsidies for our local farmers in key areas. Let’s encourage them to increase production so that the consuming public can benefit from lower food prices. By improving the supply chain from farm to home, we can achieve true food security by prioritizing our own resources. But first and foremost, we must extend a helping hand to our local farmers.
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