With rice prices soaring, the head of President Marcos' economic team said that their main focus is to lower inflation and protect the purchasing power of the Filipino people.
Finance Secretary Ralph G. Recto said he was “encouraged by the further drop in the Philippines’ headline inflation to 2.8 percent in January.” However, he noted that the prices of rice, the country's staple food, are rising quickly.
This was “due to higher prices in the international market as trade protectionism continued in India and weather disturbances affected crops in Thailand, which are the Philippines' major sources of imported rice,” Recto said.
“As I’ve said before, our top priority is to reduce inflation and protect the purchasing power of the Filipino people,” the finance chief said.
“Addressing inflation will not only further grow the economy but it will help boost our revenue collection and improve the quality of life of Filipinos,” he added.
To combat inflation, Recto said the Department of Finance (DOF) will vigorously implement strategies outlined in its Reduce Emerging Inflation Now (REIN) plan, designed to maintain stability in the prices of goods and services.
These initiatives involve closely monitoring financial assistance programs or ayuda aimed at supporting vulnerable sectors.
Recto said the goal is to improve how the government identifies who needs help, distribute financial aid efficiently, fix problems, accurately budget for assistance, and work with other agencies to make sure these programs work well.
This involves speeding up the El Niño Mitigation and Adaptation Plan, which includes fixing irrigation systems, targeted cloud seeding, promoting water-saving technology, and closely watching prices and supplies of essential goods and farm products.
“The DOF, together with the Department of Agriculture (DA), is also working to fast-track the Philippine Crop Insurance Corporation (PCIC)’s indemnification program due to drought and pests,” Recto said.
“The government will likewise ensure timely and sufficient imports of key commodities based on more frequent analysis of demand and supply conditions while combating anti-competitive practices,” he added.
Simultaneously, the DOF said the government will actively engage in discussions with various stakeholders to expedite the implementation of programs and projects geared towards improving agricultural productivity.
To help keep the prices of rice stable, the President issued Executive Order (EO) No. 50 extending the modified rates for rice imports and other goods until the end of the year.
Moreover, the Philippines secured the largest share of its rice importation agreement with India, securing 295,000 metric tons (MT) to augment the country's rice supply out of the 1.03 million MT total rice exports to be distributed among seven countries.