DA to sustain subsidies, lower tariffs to reduce food supply chain costs

The Department of Agriculture (DA) said on Thursday it will pursue interventions to slash food supply chain costs as inflation rose to 7.8% in October.

The department said it will continue providing fuel and toll subsidies, financial aid, farm inputs, crop insurance, and reduced tariffs on essential animal feed components like corn.

Among the initiatives by the DA is the expansion of the government’s P20 per kilo rice program for the vulnerable sector.

“We are also expanding the coverage of Benteng Bigas, Meron Na!, President Ferdinand Marcos Jr.’s affordable rice program, to help shield vulnerable households, including those with senior citizens, solo parents, and persons with disabilities, from price pressures arising from external shocks beyond the government’s control,” said DA Secretary Francisco Tiu Laurel Jr. in a statement.

Food inflation —which tracks the price movements of food items in a “basket” commonly purchased by households— saw a slight decrease of 6.4% from 6.8%, according to the Philippine Statistics Authority (PSA).

The PSA said the downtrend in food inflation in October was mainly driven by the slower annual increases in the indices of Fish at 5% from 7.4%, and in Vegetables at 5.7% from 10.5%.

Rice remained the largest contributor to overall inflation, while transport and energy costs recorded some of the sharpest increases amid rising fuel prices.

Moreover, Tiu Laurel noted that affordable food depends on a steady supply, warning that climate impacts and geopolitical conflicts continue to jeopardize global and local agricultural production.

“Keeping food prices manageable requires not only bringing down costs but also ensuring that farmers can continue producing enough to meet domestic demand,” the DA said in a statement.

To address price pressures, the Department of Economy, Planning and Development said the government is strengthening agricultural production and logistics while providing targeted assistance to sectors affected by higher energy costs. —LDF, GMA News