Instead of giving cash to poor to help lower inflation, says DA
President Ferdinand Marcos Jr. is studying a proposal to give rice to poor Filipinos as assistance instead of cash aid under the Pantawid Pamilyang Pilipino Program (4Ps).
Agriculture Undersecretary Roger Navarro said distributing rice instead of money to 4Ps beneficiaries could help lower rice inflation, which soared to a 14-year record high of 22.6 percent last month.
“We told the President that if we can convert the 4Ps – instead of money, it should be in rice form, supplied by the NFA (National Food Authority). So this will ease the price pressures of the market in terms of buying high-price rice,” Navarro said.
“We’re giving 4Ps beneficiaries money, and unfortunately, because that is not rice, they’re going to buy rice at the market price. That puts pressure and becomes inflationary in the market because they’re going to compete with the people who have money [to buy rice].”
“The President is saying that we will consider the proposal and we will take a look on how to implement this proposal,” Navarro added.
The NFA currently sells rice at P23 to P27 per kilo, while market prices range from P42 for regular-milled rice to P47 for well-milled varieties, according to the Philippine Rice Research Institute.
International prices of rice have been fluctuating as countries try to increase their rice reserves through importation on the back of a potential drop in harvest due to an expected strong El Niño episode.
The United States Department of Agriculture recently said it projects the Philippines to import 3.9 million metric tons of rice this year, making the country the biggest importer of the grain in the world.
But the Department of Agriculture said it would rather allow market forces to dictate the prices as it rejected earlier suggestions of imposing suggested retail prices (SRPs) on agricultural goods.
As this developed, the Department of Budget and Management has released P455.58 million to support the Rice Competitiveness Enhancement Program (RCEP) for the first quarter of the year.
The program, funded by the Rice Competitiveness Enhancement Fund (RCEF), aims to improve the productivity and competitiveness of local rice farmers and increase their income through the provision of farm machinery and equipment, rice seed development, propagation, and promotion, expanded rice credit assistance, and rice extension services.
“In our quest for food security for all under President Marcos’ vision of Bagong Pilipinas, we will continue to support programs that boost the local production of major agricultural commodities, including rice, which is a staple food in almost every Filipino household,” Budget Secretary Amenah Pangandaman said.
The funding will cover operating requirements for various programs of the implementing agencies of RCEP from January to March.
These agencies include the Land Bank of the Philippines (P133.64 million), the Development Bank of the Philippines (P120 million), and the Philippine Rice Research Institute (P178.14 million).