Salceda: Rice supply, cost key driver of March inflation

The country's economic managers must glue their eyes on the supply and cost of rice, one the main drivers of the upward trend of the headline inflation in March, surging at 3.7 percent, Albay Rep. Joey Salceda said Thursday.

The economist-lawmaker, chairperson of the House committee on ways and means, reiterated that the government's game plan must be laser-focused on rice, taking into account that it is the "greatest driver" of overall prices.

Salceda said food inflation accounted for 57 percent of the total inflation in March, which increased to 3.7 percent from the previous month's 3.4 percent.

"As I said last month, once again, it's all about rice. Without the abnormal price of rice in the global market, inflation would have been closer to 3.1 percent, which is well within acceptable range," Salceda averred.

"Corn prices are declining. Fish prices are down. Vegetables are cheaper this year than last year. And even sugar prices are slightly down. Bread prices are mildly up, but that is attributable partly due to the correlated prices of wheat and rice, especially in India where they are substitutes," he added.

The Philippine Statistics Authority reported on Friday that the headline inflation rate slightly jumped for the second consecutive month to 3.7 percent in March from 3.4 percent in February.

The PSA, however, said last month's inflation was much lower than the 7.6 percent rate recorded in March last year.

The PSA's report showed that the high costs of primary foods such as rice, vegetables, and meat were among the major factors influencing the overall heightened inflation uptrend in March.

Last month, Salceda lamented that interventions must be "laser-focused" on the staple grain.

He, however, turned down the proposal of increasing rice imports since harvest season begins in April and the election in India, which imposes a rice export ban, will take place in May.

Meantime, according to Salceda, the significant progress being made by Agriculture Secretary Francisco Tiu-Laurel within the DA, including the "cleanup" of the National Food Authority, earlier subjected to allegations of corruption, will help make cheap rice available, especially to the poor, and provide a better market for rice farmers.

"[Secretary Laurel] has brought machinery distribution, for example, to about 92 percent of the target. The P12 billion rice farmer financial assistance is also set to be completed this June – again, just in time for planting," he said.

The DA has also been more active in delivering programs from the Survival and Recovery (SURE) Loan program of the Agricultural Credit Policy Council (ACPC), according to Salceda.

The Philippine Crop Insurance Corporation, he added, has also begun to issue indemnity insurance payments to farmers affected by drought.