DOF pushes agri reforms to ensure stable food supply

MANILA, Philippines — The Department of Finance (DOF) is pushing for five reforms in the agriculture sector to ensure the stable supply of food even amid a crisis.

Finance Secretary Carlos Dominguez laid out his recommendations, while lauding the Department of Agriculture (DA) for preventing a food crisis even amid the virus outbreak and the imposition of community quarantines in different parts of the country.

He said despite the  weaknesses in the logistics system and the rush of some local government units to seal borders, no food riots nor hoarding of supplies broke out.

“The continuous flow of food from our farms to our consumers is one of the brightest spots in our response to this pandemic,” he said during Agriculture Secretary William Dar’s anniversary event as a member of the Duterte administration’s Cabinet.

The finance chief also cited the DA for keeping food prices stable, which was one of the main reasons why inflation has remained low amid the pandemic-induced economic crisis.

To ensure that there would be no disruptions in food production in the future, Dominguez proposed five reforms in the agricultural sector.

For one, he said the DA should extend the productivity gains in the rice sector to other crops, particularly sugar.

Dominguez said  the “archaic” trade restrictions, protectionism and the 70-year old incentive-less production sharing mechanism in the sugar industry has caused inefficiencies in sugar production.

“Domestic industries, such as food manufacturing that rely on cheap and stable sugar supply are also constrained by onerous and complicated import restrictions on volumes, category, and type of sugar, as well as the eligibility of the importer,” he said.

According to the DOF chief, the government needs to study ways to improve the welfare of sugar farmers, small landholders, millers and other stakeholders without restraining the growth of other sectors, such as food processing.

Secondly, Dominguez said there is a need to digitize agricultural systems, as highlighted by the mobility restrictions during the lockdowns.

He said digitalization would directly link farmers to consumers, which will then reduce the middlemen and processes in the supply chain, while also adding value and quality to food, and improve income of farmers and agri-entrepreneurs.

Dominguez also urged Dar to expand access to digital marketing tools to improve consumer spending.

“Digital marketing will also support our efforts to boost consumer spending, as it allows consumers to access fresh produce without having to congregate in traditionally crowded public markets. It also provides the transport sector, which has shifted to doing deliveries, with much needed business,” he said.

The finance secretary also called on the DA to further mechanize farm production to make the agriculture sector more competitive, and to improve its efficiency in implementing programs.

Dominguez then challenged the DA to fulfill a two-percent annual growth in the agriculture sector, keeping it ahead of the country’s population expansion rate, which was estimated at 1.4 percent in 2019 by the Philippine Statistics Authority.

“The steady growth of our agriculture sector is crucial to achieving stable food prices for all Filipinos,” Dominguez said.