Pernia appeals to Congress: Lift QR on rice

AMID third quarter growth of 6.9 percent that made the Philippines the second fastest growing economy in Asia, the National Economic and Development Authority (Neda) appealed for more support for the agriculture sector.

In a speech delivered during the press conference on the performance of the Philippine economy for third quarter 2017, Socio Economic Planning Secretary Ernesto Pernia pressed Congress to remove the quantitative restriction on rice.

“We request Congress to amend domestic laws governing the rice sector. Our traditional way of helping farmers has been to artificially increase the price of rice. This adversely affects consumers especially the poor, and yes, including the farmers who are also consumers, and discourages them from producing what could be the more optimal crop choice given their context,” Pernia said.

Based on the Agricultural Tariffication Act, the Philippines follows a minimum access volume (MAV) on rice set at 805,200 metric tons. The removal of the MAV is expected to lower prices of rice, with more and cheaper rice imports, that is deemed beneficial to consumers.

“Removing the quantitative restriction on rice, whilst providing technical and other assistance to farmers on crop diversification, will reduce the consumer price of rice and encourage farmers to make the most productive use of their land and labor resource,” said Pernia.

The official also cited the Philippine Development Plan (PDP) 2017-2022, which outlines measures to increase the income of farmers and fisherfolk, as well as their access to economic opportunities, new technology and financial instruments.

“We have to remember that agriculture is a key to economic growth and development. But, as our population increases, and as we expand our physical capacity in terms of roads, bridges, housing and commercial establishments, we need to think of breakthrough innovations in our agricultural sector,” he said.

“Food production needs to be more efficient, having to make do with less land; industrial crop production needs to expand in order to supply the raw materials required by the manufacturing sector. This will increase the value of agriculture, and hence, the income of farmers,” he added.

The agriculture sector grew by 2.5 percent in the third quarter, behind services that grew by 7.1 percent and industry at a faster rate of 7.5 percent. For the third quarter, the Philippines’ GDP growth was second to Vietnam at 7.5 percent, and ahead of China’s 6.8 percent.

Overall, year-to-date growth of the Philippine economy rested at 6.7 percent.

“All of us know, and there is a growing consensus on this, that the country’s growth cannot be measured by GDP alone. It is not sufficient to guide us in policy and business decisions,” the official reminded stakeholders.

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