Farm infra investment considered ‘more efficient' than rice subsidy

THE GOVERNMENT needs to focus on investing in farm infrastructure such as drying, storage, and irrigation facilities to bring rice prices down to P20 per kilo, the Makati Business Club (MBC) said.

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Infrastructure investment is more sustainable and efficient than subsidizing rice prices, MBC Chairman Edgar O. Chua told reporters, adding that the key is to reduce farmer reliance on middlemen, many of whom have been providing farmers with storage and inputs.

"Consumers pay a very high price (for rice). We pay almost double what other countries pay, and yet our farmers are getting a very low price for their produce," Mr. Chua said.

"In between, there are so many middlemen that make a margin. And some of them are lending money, some of them are providing storage facilities, some of them are providing fertilizer, etc. (to farmers)," he added.

"So, what's needed is to address the inefficiencies in the ecosystem."

The P20-per-kilo rice program of the Department of Agriculture (DA) has recently been expanded to parts of Luzon and Mindanao, after its initial rollout in selected Visayan provinces on May 1.