On Tuesday, the Department of Agriculture (DA) conveyed that attaining a rice price of P20 per kilo would hinge on market dynamics, even if the country attains its 95% rice sufficiency target.
DA Undersecretary Leocadio Sebastian provided this response in a discussion with House Deputy Minority Leader Mujiv Hataman of Basilan. Hataman had inquired whether the goal of achieving 95 to 97% self-sufficiency by the end of President Ferdinand “Bongbong” Marcos Jr.’s term in 2028 would enable the possibility of a P20 per kilo rice price.
“That is a market…[it] depends on the market on how it will play,” remarked Sebastian during the DA’s proposed P181 billion budget for 2024 deliberations.
“If we are able to improve our value chain, reduce the cost of the post-harvest cost, reduce the cost of production, [it will] not [be] P20, but at least we can maintain a low price that is affordable.”
Sebastian clarified that the post-harvest production cost currently involves multiplying the price of each kilo of palay by two, whereas the ideal target should be 1.5.
“I think our objective should be affordability for our population,” he added.
Hataman countered that “affordability is very relative.”
“Dapat kasama sa self-sufficiency program ang presyo. Hindi simpleng available yung bibilhin, dapat affordable, lalo na DA Secretary ang Pangulo ang campaign promise ito ng Pangulo,” Hataman explained.
“Iyong P20 per kilo [of rice], medyo mahirap,” responded Sebastian.
P20/kilo rice depends on value chain improvement
Subsequently, Hataman asked the DA officials whether reducing rice prices to P20 per kilo was included in the DA’s strategic plan.
“We want to ensure good income for our farmers, that is our main objective,” Sebastian responded.
“Ang tinatanong ko, kung kasama sa plano,” said Hataman. “Bakit hindi natin sabihin ngayon kung bakit hindi kasama sa plano?”
Sebastian quoted President Marcos and said, “It is our aspiration.”
He responded with, “I cannot provide an answer,” when Hataman asked whether they could lower rice prices to P20 per kilo.
During the same hearing, Agriculture Undersecretary Mercedita Sombilla highlighted that the rice buffer stock for both the current month and September is relatively low. Consequently, there’s a requirement for imported rice to arrive by September 15.
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