Business
Economist calls for increased rice imports, gov't interventions to tackle costly staple food
Economist calls for increased rice imports, gov't interventions to tackle costly staple food
At A Glance
- Rice importations and government interventions are both seen as valid solutions to the 22.6 percent rice inflation rate of January.<br>Rice importation may be seen as a good short-run answer, however too much would pose a negative effect on the country's gross domestic product (GDP).<br>A good long-term solution is farm mechanization, input adjustments, output resiliency and other farming aids that could boost rice production.<br>Without consistent and proactive measures, it could take 88 years to stabilize the country's rice output.
The government should intervene to control rising rice prices and consider importing more of the staple food, an economist at the University of Santo Tomas (UST) suggested.
Carlos Manapat, chairperson of the UST's economics department, proposed two effective strategies that the government can pursue to tackle the 22.6 percent rice inflation recorded last month.
Manapat first proposed that importation may be considered as one of the potential short-term solutions to address the skyrocketing rice prices.
The Department of Agriculture is currently expecting the arrival of more rice shipments from India, Taiwan, and Vietnam within this year month. However, Manapat noted that heavy dependence on importation could negatively impact local production.
“Too much importation can lower the country’s gross domestic product [GDP],” Manapat told Manila Bulletin.
“Because we are helping the economy of other countries,” Manapat added.
Another strategy he shared involves government interventions, including enhanced farm mechanization, adjustments to input, and bolstering output resiliency, aimed at supporting the long-term sustainability of the rice sector.
“[The government can] intervene in terms of technology, output resiliency, invent rice variety [that can withstand drought or flooding,]” he explained.
Before the start of the new year, Agriculture Secretary Francisco P. Tiu Laurel, Jr. shared that low-water-use technology has been set to aid with rice farming, as well as constructing and upgrading irrigation systems for more effective water distribution to farmlands.
This is one of the "game plans" the agency has made to prepare for the El Niño effects.
Recently, the government distributed hauling trucks, seeds, fertilizer discounts, and financial assistance to farmers in Candaba, Pampanga.
Manapat, however, said that rice prices are likely to rise further in the coming months due to external factors such as higher fuel costs that affect farm-to-market transport.
Nonetheless, he also pointed out that addressing the internal factors could contribute in moderating rice inflation.
Philippine Statistics Authority Undersecretary Claire Dennis S. Mapa said that the upward trend in the cost of rice is expect to persist until July.
Manapat warned that without proactive measures to address the rice supply and pricing issues, “it will take 88 years to cope with the increasing demand for rice, or stabilize the rice input.”