Silos used for storing rice and grain are to be studied, according to Marcos.
The Department of Agriculture (DA) has been asked by President Ferdinand R. Marcos Jr. to investigate the viability and effectiveness of the idea of constructing silos for the storage of rice and corn to maintain a 30-day buffer stock of agricultural commodities.
The request was made by the Private Sector Advisory Council (PSAC) on Agriculture during a meeting held on Thursday at Malacaan Palace in Manila. Marcos, also the director general of the Department of Agriculture, then issued the order.
According to a statement released on Friday by the Department of Communications’ Cheloy Garafil, Marcos had directed DA Undersecretary Drusila Bayate and National Food Authority (NFA) Administrator Roderico Bioco to research the idea of building mother-daughter or hub-and-spoke rice and corn station modules across the nation.
According to the PSAC’s proposal, about 30 mother stations with ten daughter modules each will be constructed nationally to house grain for buffer stocking for up to 30 days at a time.
According to Garafil, the station modules will be constructed within a 30-kilometer range of the main station.
“The PSAC recommended that building nationwide mother-daughter stations for rice and corn storage will complement the Marcos administration’s Food Security Infrastructure Modernisation Plan,” she added, noting that the idea is considered as ensuring “sufficient stock and stable prices of rice and corn.”
The mother-daughter module stations have already been set up in nations including China, the United States, and India, according to Aileen Christel Ongkauko, head of the PSAC Agriculture group of La Filipina Uy Gongco Corp.
According to Ongakuko, the government may pursue public-private partnerships (PPP) for the proposed project, which has a PHP170 billion projected cost and may cost PHP5.7 billion for each mother station.
Marcos agreed that it could be worthwhile to implement the plan and welcomed the notion.
As reported by the PCO, he said, “We should look into it because it’s a successful program.”
The PSAC also suggested setting up a technical working group with the council’s full involvement to create and carry out this strategy.
According to the report, “the council recommended looking into public-private partnerships for each module, with the government guaranteeing an offtake of 100,000 metric tonnes per module per year” to promote participation from the private sector.
It is also suggested to choose important farmers within a 30-kilometer range of each daughter station and use hybrid seeds for corn and rice during the wet season. The National Food Authority would direct the work plan, the PSAC noted.
decreasing the cost of rice
Bioco expressed optimism at the discussion that the suggested plan would assist in bringing rice prices down.
As he pointed out, an earlier attempt to put a similar idea into action had failed.
Before the lean season, NFA is often required to have a 30-day buffer supply. Since you could import, it was simpler, but now we have to buy palay (unhusked rice) nine months early, according to Bioco.
In addition, he continued, “If we switch to that also, Mr. President, what we aim to achieve is that quantitative easing in rice pricesโฆ, provide the bottom 18% of our society, take that away from the market, then we can put less pressure on prices, especially during the lean season.
The NFA is responsible for managing the domestic procurement of unhusked rice and preserving the ideal quantity of buffer stock in key locations nationwide.
Bioco says the government has raised more than PHP35 billion to purchase rice. She noted that the goal is to provide disadvantaged households with physical rice so they won’t have to travel to the market to buy it, which will ultimately positively impact rice prices.
Marcos expressed gratitude for the NFA’s efforts to guarantee the nation’s “stable” rice supply.
He expressed his happiness at the NFA’s return to its original purpose of attempting to stabilize rice prices during the harvest and subsequent planting cycle.
Fishing laws and initiatives
Meanwhile, the PSAC updated its prior recommendations and established fresh ones for the fishing industry to guarantee the nation’s food security.
The PSAC declared that their prior proposal to pursue fish imports in Mindanao from December 2022 to February 2023 and Luzon from November 2022 to January 2023 had been “well-executed.”
Additionally, it requested Marcos’ consent to give Fishpond Lease Agreements for aquaculture operations in dams and reservoirs long-term permissions for 25 years.
The PSAC added that the DA, the Bureau of Fisheries and Aquatic Resources (BFAR), the Department of Environment and Natural Resources (DENR), and the National Irrigation Administration may collaborate to implement the work plan. “To promote equitable competition, it is strongly encouraged that all operators adhere strictly to environmental, labor, and other applicable regulations,” the PSAC said.
The PSAC also suggested that “clear” policies be released addressing the boundaries of commercial fishing zones.
It declared that it wants to work closely with BFAR to construct “science-based” fishing areas based on depth rather than distance from the shore.
The council also recommended extending the duration of licenses to run fish farming facilities to encourage stability and long-term investment in the industry. It stated that PSAC would also collaborate with DA and DENR to carry out the proposal.
According to Garafil, the PSAC is also pushing for creating a national strategy that would guide and encourage local governments to grant exclusive regions for aquaculture operators long-term licenses for at least ten years for new developments and 5 to 7 years for active farming areas.
PSAC Lead Convenor Sabin Aboitiz, Chris Po of the Century Group, Francisco Tiu Laurel Jr. of Frabelle, Irwin Lee of Universal Robina, and Ramon Lim of RNCL Prime Holdings Corporation were also present at the meeting.
PSAC Communications Lead Anna Margarita Hontiveros-Malvar, PSAC Assistant Secretariat Lead David Jude Sta. Ana, DENR Secretary Ma. Antonia Yulo-Loyzaga, Special Assistant to President Antonio Lagdameo Jr., Local Government Secretary Benjamin Abalos Jr., and Presidential Advisor on Investment and Economic Affairs Frederick Go were also present.
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