President Ferdinand "Bongbong" Marcos Jr. is betting on the harvest season to come earlier than projected to end the persisting price shock that required a government response of putting a cap on retail prices.

The price ceiling was accompanied by an order increasing the farm gate prices to relieve farmers of the low offers from traders.

Marcos expressed optimism that the early harvest of palay (unhusked rice) would help lower market grain prices.

In a chance media interview Saturday, Marcos expressed hope that Filipinos will once again reap the effects of "more improved production" in the agriculture sector.

He also reiterated his decision to order the temporary imposition of ceilings on rice was in response to the sudden spike in retail prices of the staple grain.

"We're already harvesting. When that comes in, I think we will see the prices go down. It would be determined by market forces," Marcos said on the sidelines of rice distribution to about 2,000 qualified beneficiaries in Iriga City, Camarines Sur.

In August, the Department of Agriculture, or DA, reported an estimated 900,000 metric tons of the palay output.

Marcos said the palay harvest, which is expected to peak in late September to October, will contribute mainly to the country's production from July to December.

By this time, the DA estimated that the palay harvest would peak at 11.5 million metric tons.

Data from the Philippine Statistics Authority showed that the national palay output from January to June 2023 rose to 9.02 million MT, 3.4 percent more than the 8.7 million MT production for the same period in 2022 and 2021.

Marcos added that the government is currently dealing with hoarding of rice supply to manipulate the price of the staple grain.

Supply's not the problem

As hoarders are suspected of delaying the release of rice, Marcos said, "There's no need not worry about the supply."

He said the country has sufficient stock of the staple.

"We are here to help those in need because we know that the price of rice has increased," he added.

Marcos said rice prices were so high, prompting the government to impose a price cap.

Under Executive Order 39, which took effect on 5 September, Marcos ordered the implementation of a price ceiling of P41 per kilogram for regular milled rice and P45 per kg for well-milled rice.

Marcos stressed that one of the government's thrusts is to address the gaps and challenges in the agricultural sector, particularly "rice distribution that affects supply and prices."

"We have a lot of rice, but it is not being correctly distributed. That's why we have no problem with the rice supply here in the Philippines," he said.

Marcos said DA is exhausting efforts to boost the supply and reduce the cost of rice.

In the meantime, he said the government must implement measures such as imposing a price cap, providing cash aid to rice retailers, and setting new palay buying price range for the National Food Authority to help farmers and secure inventory.

Farmers happy with hike

The DA said farmers from different regions were happy with the increase in the buying price of the National Food Authority at the farmgate of P16 to P19 per kilogram for fresh palay and P19 to P23 for dry palay.

The new buying prices of NFA were ordered by President Ferdinand Marcos, who is concurrent Agriculture Secretary, on Monday last week to ensure that farmers, who are currently harvesting their wet season crop, would not suffer from abruptly declining prices for their fresh harvest beginning this month.

DA Undersecretary Leo Sebastian said the farmers told them that traders usually use the NFA as their benchmark in setting their buying prices from farmers for the fresh palay.

With the mandated price hike for NFA, such drastic price declines would not materialize.

Jing Villamente