NEDA wants faster release of farmer assistance as palay prices continue to drop

The financial assistance to local farmers should be fast-tracked given the continuous decline in price prices, the National Economic and Development Authority (NEDA) said Thursday.

“There is a need to fast-track the rollout of the programs and projects under the Rice Competitive Enhancement Fund (RCEF) to support the farmers against dropping palay farmgate prices,” said NEDA officer-in-charge Rosemarie Edillon.

The Philippine Statistics Authority (PSA) earlier on Thursday reported inflation settled at 1.7% in August, the third consecutive month of deceleration.

August also marked the fourth consecutive month of declines in rice inflation at -5.2% versus -2.9% in July.

According to National Statistician Claire Dennis Mapa, the PSA’s survey showed that prices per kilogram of palay or unmilled rice have dropped to as low as P8.

“We are seeing in some areas … the low amount is already between P8 to P10, but in some areas there are still high prices,” he said in a separate statement.

The government implemented earlier this year the Rice Tariffication law, which removed quantitative restrictions on rice and imposed a 35% tariff on imports from Southeast Asia.

The law also earmarked P10 billion for the RCEF, of which P5 billion will be allotted to farm mechanization and P3 billion to seedlings. The fund intends to ensure that rice imports won’t drown out the agriculture sector and rob farmers of their livelihood.

“The Rice Liberalization Act continues to help increase rice supply in the country,” Edillon noted.

“This allows more Filipinos to access cheaper rice. This is especially helpful since a large number of families spends almost 30% of their total food expenditure on rice.” —VDS, GMA News