Prompt actions alleviate effects of ‘depressing’ year for PH agri

By Stephanie Sevillano, Philippine News Agency

FILE: Farmers plant rice seedlings in Sumapang Matanda, Malolos, Bulacan on Thursday (Sept. 14, 2023). (PNA photo by Joan Bondoc)

MANILA – The prompt actions of the administration of President Ferdinand R. Marcos Jr., through the Department of Agriculture (DA), have helped alleviate the effects of a “depressing” year in the agricultural sector.

Agriculture Secretary Francisco Tiu Laurel Jr. hailed the performance of the DA team despite the major challenges that have taken its toll on the country’s local agricultural production, including the El Niño phenomenon, La Niña, successive typhoons, Mt. Kanlaon eruption, African swine fever (ASF), and a brewing bird flu, among others.

“The team that I have is very good. I’m happy with the team. I’m happy with the support of the President,” he said in a recent interview.

“I would say this is a depressing year in agriculture in a sense but of course, I think the DA, we’ve addressed iyong mga kailangang gawin (what’s needed to be done). As far as DA is concerned, we have reacted quickly to the calamities that we’ve faced.”

These natural calamities have contributed to the decline of local palay (unhusked rice) output, which is projected to drop to 19.3 million metric tons (MMT) for 2024, according to the DA’s Rice program.

Spiking rice retail prices also remained a challenge, prompting the administration to implement a tariff cut on imported rice to 15 percent from 35 percent under Executive Order (EO) 62.

With the tariff reduction in place, volume of rice imports reached a record high of 4.48 MMT as of Dec. 12 and is still projected to hit an all-time high of 4.7 MMT.

Besides the tariff cut, the Marcos administration also launched the DA’s Kadiwa ng Pangulo (KNP) Rice for All and P29 programs to offer Filipinos cheaper rice options.

The Rice for All program sells mixed local and well-milled rice to the general public at PHP40/kg., with no purchase limits in KNP Centers and newly-opened kiosks in local markets, LRT, and MRT stations in Metro Manila.

Meanwhile, the P29 is dedicated for the vulnerable sector including members of the Pantawid Pamilyang Pilipino Program (4Ps), senior citizens, persons with disabilities (PWD), and solo parents, offering aging but good quality rice stocks from the National Food Authority (NFA) which can be availed for PHP29/kg. at a 10-kg. purchase limit.

To sustain and expand the rollout of the two programs nationwide, the Office of the President (OP) approved PHP5 billion in unprogrammed funds for the DA, Tiu Laurel noted.

Of the budget, around PHP3 billion will be allocated for Rice for All; PHP1.5 billion for P29; and PHP500 million for rehabilitation of warehouses and logistics costs.

The agriculture chief said this may help further lower Rice for All costs starting in 2025.

“We will be buying rice from the traders, the farmers, farmer coops, from the importers, and sell it through the Kadiwa ng Pangulo at hopefully PHP38, PHP39,” Tiu Laurel said, citing plans to start utilizing the budget on Jan. 15.

For 2024, at least 170 KNP stores are expected to be operational; 300 by mid-2025; and 1,500 before the term of President Marcos ends.

Agri smuggling tamed

With intensified efforts in place, Tiu Laurel highlighted the elimination of agricultural smuggling, particularly on imported rice.

“Maraming (Many) policy changes from the system to import rice. Yung tingin ko na-eliminate na natin is (I think we have eliminated) maybe 90 plus percent of the smuggling that has been going on,” he said.

Since the implementation of tariff reduction, recorded volume imports increased even without the “considerable” population growth compared to the last two years.

“Lumalabas iyong data ng 2022 na 3.8 MMT and 3.5 MMT na in-import 2023 (It showed that the 2022 data of 3.8 MMT and 3.5 MMT imported in 2023) is wrong because of smuggling. Ngayon umabot tayo ng (Now, we reached) 4.5 MMT.  Of course, nakatulong din diyan yung taripa (the tariff helped), because there’s no point to smuggle anymore, just declare it,” Tiu Laurel said.

Meanwhile, the DA Bureau of Animal Industry (BAI) blacklisted 10 firms for alleged involvement in illegal agri-trade practices.

Among the blacklisted companies include LVM Grains Enterprises, Kysse Lishh Consumer Goods Trading, JRA and Pearl Enterprises Inc., Betron Consumer Goods Trading, RCNN Non-Specialized Wholesale Trading, and Golden Rays Consumer Goods Trading, which failed to secure sanitary and phytosanitary import clearances from BPI before importing vegetables, fruits, and other food products, according to the DA.

Unlicensed importers include Kysse Lishh, RCNN, Chastity Consumer Goods Trading, and Golden Rays.

Some licensed importers were also found to be involved in anti-competitive practices, price manipulation, and collusion, including La Reina Fresh Vegetables Young Indoor Plants Inc., Vegefru Producing Store, and Yom Trading Corp.

Tiu Laurel warned importers anew to cease engaging in illegal practices which serve as economic sabotage, citing the possibility of blacklisting five more firms including fish and meat importers.

Combatting ASF

In terms of combatting ASF, stringent measures have been put in place to prevent further spread across the country.

Efforts include strict implementation of border checkpoints in Metro Manila and nearby provinces, as well as the intensified government-controlled vaccination using the AVAC live vaccines for healthy and ASF-negative hogs.

As of Dec. 6, areas with active ASF cases have been reduced to 365 barangays in 88 municipalities in Cordillera Administrative Region, Ilocos, Cagayan Valley, Central Luzon, Calabarzon, Mimaropa, Bicol, Central and Eastern Visayas, and Soccsksargen.

“Another major accomplishment, I think, would be how we tackled the ASF issue this year. Medyo maganda yung checkpoint na ginawa (the checkpoints that were placed are good) and we’re constantly communicating with the LGUs and the stakeholders. Kaya hindi masyadong kumalat yung (That’s why there’s not much spread of) ASF. There’s more cooperation between government and the private sector,” Tiu Laurel said.

In particular, the DA has distributed 10,000 doses of AVAC live vaccines under the emergency procurement; while the rollout of the 150,000 newly-purchased doses is ongoing.

Overall, the DA aims to distribute 490,000 doses of ASF vaccines.

Tiu Laurel expressed hopes to secure approval for commercial use of ASF vaccines for the first quarter of 2025 to further enhance the recovery of the swine industry.

“Next year, with this vaccine and the biosecurity, I expect a good recovery for the pork.”

Tiu Laurel said the plans are also in place to address the brewing threat of avian influenza (AI) in the country.

He said they intend to procure 30 million doses of vaccines worth PHP300-million in the coming year.

Besides pork and poultry products, the agri chief also highlighted the DA’s achievement of taming prices of select commodities including onion and sugar.

Compared to over PHP700/kg. and more than PHP100/kg.-levels for onions and sugar in 2023, its prices are now stabilized to PHP100/kg. to PHP160/kg. range; and PHP74/kg. to PHP90/kg. price range, respectively.

Positive outlook

Tiu Laurel said the DA is approaching the new year with a positive outlook across the agriculture sector with more programs beneficial to both farmers and consumers.

For rice farmers, he said the DA will launch a “full-blown” scale of the Agri-puhunan at Pangtawid program which will serve as a funding mechanism with insurance per cropping period alongside contract farming.

“I think that is a very good program which was conceptualized in July… But next year by February for the next planting season we plan to cover 100,000 farmers,” Tiu Laurel said, citing previous rollout in the Cordilleras and Nueva Ecija.

The DA also plans to launch the sale of healthier and cheaper rice options through the “Nutri” and “Sulit” rice programs for consumers.

“To bring down the prices of well-milled rice, that’s the biggest challenge,” he said.

The “sulit” rice, which is 100 percent broken but white, will be sold at PHP35/kg. to PHP36/kg.; while “nutri” rice, which is neither white nor brownish local rice, will be sold at PHP36/kg. to PHP37/kg.

The DA also plans to remove brand labels on imported rice to prevent profiteering, citing that some importers and retailers take advantage of the “special” and “premium” rice labels to sell at a higher price range.

Moreover, the DA is also looking into setting up a three-year budget plan for its big-ticket projects for cold storage and irrigation.

“I am looking forward to implementing all our projects next year from cold storage to solar irrigation. Iyong (The) change of planting calendar, increasing planting intensity to 2.5 from 1.8. So, I think we can produce more and stabilize the prices,” Tiu Laurel said.

The modification of the planting calendar aims to boost local production by reducing harvest losses due to natural calamities during typhoon months from September to October, making the average annual losses range from 500,000 MT to 600,000 MT of palay.

Under the new cropping calendar, rice farmers will secure higher yields in irrigated areas with a second crop to be harvested in May and June, just in time before the onset of the rainy season.