The local palay harvest from Filipino farmers remains the government's top priority to boost, President Ferdinand “Bongbong” Marcos Jr. said on Monday.

In his third State of the Nation Address (SoNA), delivered in the Batasang Pambansa Complex in Batasan Hills, Quezon City, the chief executive shed light on the current rice situation, in which the staple grains' prices are high in local markets.

“The hard lesson of this last year has made it very clear that whatever current data proudly banners our country as among the best-performing in Asia means nothing to a Filipino who is confronted by the price of rice at P45 to P65 per kilo,” Marcos said in a mix of Filipino and English.

He noted that “Although these statistics are good, they do not mean anything to our countrymen who face the reality of high prices of goods, especially food—even more so, rice.”

Marcos said several factors affect the grain’s prices, such as its high cost in the world market, wars, supply problems, and natural forces such as the El Niño phenomenon.

“I know you can feel it. We do not ignore your grievances and sufferings,” he said, citing that despite these, the Philippines recorded its highest rice harvest last year, where it reached over 20 million metric tons (MT)—the highest palay harvest since 1987.

This yield is, however, only equivalent to 13 million MT of rice, said the President, which is inadequate to meet the domestic requirement of 16 million MT, thus leading the government to import.

“But we will still value local production more. So we continue to support the agricultural sector to speed up, facilitate, and boost production—from planting, harvesting, and catching to transportation and sale—and also to prevent spoilage of products,” Marcos said.

Over one hundred million kilos of various seeds and fertilizers were distributed to farmers, Marcos said. Likewise, technical and financial aid were also provided to increase their knowledge of modern farming methods and aid in obtaining sufficient capital.

‘EO 62 not a solution’

The lowering of the levy for imported rice is, however, not the solution to bringing down its prices in local markets, said a farmers' group.

Samahang Industriya ng Agrikultura, or Sinag, expressed delight at the President’s intention for local production to be a priority and continuing to help the agri sector, as they said, this was his marching order even in his first SoNA in 2022.

“This is what the country's economic managers should follow, especially the NEDA [National Economic and Development Authority], which pushed EO 62 contrary to the President's statement to continue supporting the agri-sector. The entire agribusiness sector is with the President in finding a way to lower the price of rice,” Sinag executive director Jayson Cainglet said in a statement shortly after the SoNA.

“But EO 62 is not the answer to lower the rice prices. And let go of the pursuit of P20 per kilo of rice because it cannot be achieved in the current situation where oil prices have doubled and production costs have increased in all countries,” he added.

Cainglet further said that “there is no shortcut” to reducing grain prices, and the price of rice and other basic commodities will only decrease if local production is strengthened and increased.

He also called on economic managers to let go of their confidence in unlimited imports and slash the tariffs, as he said this would only cripple the local farmers.

“PBBM also stated that the reduction in the tariff on rice, pork, and corn is only until the end of the year, so he clarified that this is temporary. This needs to be explained and reviewed by Sec. [Arsenio] Balisacan,” he added.

In June, NEDA agreed to slash tariffs on imported rice from 35 percent to 15 percent for both in-quota and out-quota rates, as a step in bringing rice prices down to P29 per kilo.

This reduced import levy is effective until 2028, but this policy will be reviewed every four months, said Agriculture Secretary Francisco Tiu Laurel Jr.