In the face of rising inflation, particularly driven by escalating food prices, the Marcos administration in the Philippines is urged to collaborate with the private sector to reduce logistics costs and expand storage facilities across the nation. Agricultural economist Geny F. Lapina from the University of the Philippines Los Baños highlighted the critical need for adequate logistics and storage for essential commodities like rice and vegetables to ensure stability in prices. The call for private sector partnership stems from the government's limited capacity to fulfill the country's logistics and storage demands independently.
Recent data showing a hike in inflation, with a notable increase in rice inflation, underscores the urgency of addressing food supply adequacy. The challenge is exacerbated by El Niño's impact on agriculture, particularly affecting palay production. The government's efforts to bolster agriculture have primarily focused on rice, leaving other crops that contribute to food security and climate resilience under-supported. Enhanced government funding for agricultural research is proposed as a long-term strategy to improve farm productivity.
Concerns over the reacceleration of inflation have sparked debate on the necessity of further monetary policy adjustments. The Bangko Sentral ng Pilipinas (BSP) has maintained its benchmark rate, emphasizing monetary policy actions as a countermeasure to supply-side issues. Additionally, strategies to improve farmer productivity, expand irrigation, and establish trade agreements are highlighted as essential measures to manage food prices and inflation effectively.
Source: bworldonline.com