1 week ago
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Department of Agriculture (DA) Secretary Francisco Tiu Laurel said the slower inflation in February is a clear affirmation that the agency’s strategy to stabilize the supply and prices of agricultural products is working as intended.
The Philippine Statistics Authority (PSA) reported that the inflation rate last month dropped to 2.1 percent, a significant decrease from January’s 2.9 percent.
Slower price increases in food and beverage were credited for the sharp decline.
In a statement on Wednesday, March 5, Laurel said the DA’s efforts to lower food prices to reasonable levels, while ensuring minimal industry disruptions, played a crucial role in inflation easing down.
“We will continue to engage with the various stakeholders in the agriculture sector as we refine our approach to ensuring food security in the country,” he added.
During Wednesday’s press briefing, Deputy National Statistician Divina Gracia del Prado cited the implementation of the maximum suggested retail price (MSRP) on imported rice for the decline in rice prices.
The MSRP, introduced to Metro Manila and other urban centers in January, was launched by the DA to ensure that rice remains affordable for consumers while maintaining the profitability of the rice industry.
Originally set at ₱58 per kilo, the MSRP was lowered to ₱49 last week as world market prices remain stable.
Del Prado also pointed to the DA’s declaration of a food security emergency on rice for the stable prices of the commodity.
Under the declaration, the National Food Authority (NFA) is authorized to release buffer stocks to local government units (LGUs) and other government agencies which would then sell rice for as low as ₱33 per kilo.
Additionally, the Rice-for-All (RFA) program under the Kadiwa ng Pangulo (KNP) was deemed instrumental in softening rice prices.
Last month, the DA lowered the prices of rice sold through KNP stores by as much as ₱3 per kilo.
Initially, RFA5 or the rice with no more than five percent broken grain was priced at ₱45 per kilo; RFA25 or the 25 percent broken at ₱38; and RFA100 or the 100 percent broken at ₱36.
RFA5 rice was then lowered to ₱43 per kilo, RFA25 at ₱35, and RFA100 at ₱33.
The KNP program simultaneously offer rice available at ₱29 per kilo, which is available for the country’s vulnerable sectors.
Setting sights on another price-easing policy, Del Prado suggested that a similar MSRP scheme on pork could have the same effect on meat prices.
“We expect that if an MSRP is implemented—and given all other things constant—it could slow down inflation on pork, even resulting in negative inflation,” she said.
The Agriculture Secretary is scheduled to meet with pork industry players this Thursday to discuss the potential implementation of an MSRP on pork.
This is a fresh development as Laurel told reporters last month that pork producers, traders, and retailers expressed opposition to a proposed price cap.
He earlier said that he would abide by this request once the pork industry, as a whole, agrees to offer “better prices” for consumers.
