P20/kg rice possible by 2023 via 'mega farm': DAR chief | ABS-CBN

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P20/kg rice possible by 2023 via 'mega farm': DAR chief

P20/kg rice possible by 2023 via 'mega farm': DAR chief

ABS-CBN News

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Updated Jun 08, 2022 10:49 AM PHT

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Farmers start to plant rice at a field in Barangay Simamla, Virac, Catanduanes on November 7, 2020. George Calvelo, ABS-CBN News
Farmers start to plant rice at a field in Barangay Simamla, Virac, Catanduanes on November 7, 2020. George Calvelo, ABS-CBN News

MANILA - Rice prices in the Philippines can go down to P20 a kilo as early as second quarter of 2023 through a "mega farm" or consolidated production, outgoing Agrarian Reform Secretary Bernie Cruz said Wednesday.

Cruz said an initial "mega farm" of 150,000 hectares is needed to boost production and lower prices. Pilot areas include those in northern and southern Luzon, Eastern and Western Visayas, and northern and southern Mindanao, he said.

"Mararamdaman po natin yan next year kung mabibigyan natin ng pansin. 'Di po dahil gusto natin magpa-reappoint kundi gusto natin tumulong na pabababa at magkaroon ng P20 kilo ng bigas na mabibili ng ating mga kababayan," he told ANC's Headstart.

(We can feel the decline in prices next year if we give attention to this. It's not because I wanted to be reappointed, but I want to help achieve a P20 per kilo of rice that the public can buy.)

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"Ang kailangan lang po natin is pagtutulungan ng lahat ng government agencies with the local governments and the farmers themselves...Kung mamo-modernize natin ang ating pagtatanim at gagamitan natin ng bagong binhi, talagang mapapababa natin ang cost of production."

(What we need is cooperation of all government agencies with local governments and the farmers themselves...If we modernize farming and use new seeds, we can lower the cost of production.)

During the campaign period, President-elect Ferdinand 'Bongbong' Marcos Jr. said he will work to bring down the price of rice to P20 per kilo. Albay congressman Joey Salceda earlier said P20 per kilo of rice would only be possible via heavy importation from Vietnam and removing all taxes.

The Philippine Confederation of Grains Associations, said P20 per kilo is only possible with government subsidy, nd only for rice from the National Food Authority.

In a separate interview, Agriculture Secretary William Dar said rice prices in the Philippines remain high due to high cost of production, which increased from P11.50 per kilo of rice to P14.80 per kilo.

In comparison, Thailand's cost of production is at P8 per kilo while Vietnam's cost of production is at P6/kilo.

Farmgate price of palay in the Philippines is currently at P19 per kilo while regular rice prices range from P34 to P50 a kilo, the agriculture chief said.

"With this data, it is not yet possible [to achieve P20 per kilo of rice," he said.

Dar said fertilizer prices have tripled since the start of the Russian invasion of Ukraine. The government's P3 billion subsidy for fertilizer is also not enough, he said.

In the interview, Cruz said many farmers have expressed willingness to enroll in the mega farm.

"Ang agrarian reform beneficiary organization, yun po ang ating kinokonsulta. Lagi nating ginagamit para mapaunlad ang kanilang sakahan. Marami sa ating magsasaka na willing magenroll o tumulong para dito sa mega farm," he said.

(We consult the agrarian beneficiary organization. We use this to improve their farming. Many farmers are willing to enroll or help in this mega farm.)

Income from the Rice Tariffication Law can be used to fund the program, according to Cruz.

"Kailangan lang po natin isaayos o gamitin nang tama ang nakukuha natin sa tariff," he said.

(We just need to use the funds we get from tariffs wisely.)

The department has begun talks of transition with the incoming administration and Sen. Imee Marcos, Cruz said.

"We’re preparing yung parang transition report ng departamento, hinihintay sino papalit dito (the department's transiition report and waiting who will suceed me)," he said.

"Initially may discussions kami sa staff ni Sen. Imee Marcos…para makatulong at magkaroon ng P20 na bigas."

(We have initial discussions with the staff of Sen. Imee Marcos...so we can help and achieve this P20 per kilo of rice.)

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