DA welcomes US-Iran peace deal, sees agri cost reduction

The Department of Agriculture (DA) on Tuesday expressed optimism on the peace accord signed by the US and Iran as it could help ease pressure on food costs and inflation more than 100 days after the Strait of Hormuz —a critical global shipping route— was closed.

“The reopening of the Strait of Hormuz will greatly help reduce the cost of inputs in the production and transport of agricultural commodities, especially now as we prepare for a new rice planting season,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement.

“The expected cost reduction will be one concern less and will allow us to focus on El Niño,” the Agriculture chief said.

He said that the DA had earlier prepared a “worst-case scenario” that assumed a prolonged closure of the Strait of Hormuz waterway, warning that sustained disruptions could lead to higher production costs, lower farm output, and elevated food prices.

Tiu Laurel said the reopening of the waterway “removes a major external risk just as the country gears up for the next planting cycle and braces for possible weather-related challenges.”

Apart from lowering production costs, the Agriculture chief said the reopening of the Strait of Hormuz is expected to facilitate trade flows between the Philippines and the Middle East —an important export destination for local agricultural and food products.

Philippine shipments to the Middle East are dominated by fresh pineapples and Cavendish bananas, alongside processed goods such as canned tuna, sardines, coconut products, and snack foods.

For Philippine agriculture, Tiu Laurel said the reopening of Hormuz offers more than cheaper oil as it restores a vital trade artery, eases pressure on food producers, and allows policymakers to focus on the next major challenge on the horizon —safeguarding food supply against El Niño. — RSJ, GMA News