DTI eyes food terminals around Metro Manila, to link farmers to supermarkets

The Department of Trade and Industry (DTI) wants to put up food terminals around Metro Manila and directly link farmers to supermarket chains in a bid to bring down the prices of agricultural commodities.

During the Kapihan sa Manila Bay forum on Wednesday, Trade Secretary Alfredo Pascual said the DTI has a three-year action plan for agro-food logistics "meant to address bottlenecks in the supply chain."

"Traders are the ones making money at the expense of farmers… they earn very little, and at the expense of consumers who pay very high prices," Pascual said.

Part of the action plan, the DTI chief said, is to link institutional retailers such as supermarket chains "that have presence all over the country" to farmers.

"We are trying to link them directly with our farmers," he said.

Apart from direct linkage, Pascual said the agency is eyeing the establishment of terminals "where farmers can bring their produce."

"We plan to establish food terminals around Metro Manila. We’re thinking of three of them now," Pascual said.

The DTI chief said the strategies are aimed at addressing the gap between farm gate prices and retail prices by removing traders or middlemen in the supply chain.

Data from the Philippine Statistics Authority showed that the farm gate price of palay stood at over P18 per kilo as of the end of the second quarter.

Meanwhile, the Department of Agriculture’s (DA) price monitoring showed that well-milled local commercial rice is being sold for P42 to P52 per kilo in markets in Metro Manila.

Regular milled local commercial rice is being sold for P38 to P50 per kilo.

President Ferdinand "Bongbong" Marcos Jr. tasked the DA and the DTI with closely monitoring the rice prices in the local markets.

Quoting the President, the Presidential Communications Office (PCO) said: "Rice supply is sufficient. Prices are, however, very variable."

"The government is working with the private sector to rationalize the prices and make available affordable rice in the market and in Kadiwa," the PCO said. — VBL, GMA Integrated News