To bring down the price of rice to 20.00 pesos per kilo was the campaign promise of the current President of the Philippines.
The Problem
Is this really possible? Or just a pipe dream and an (h)opium for the masses to consume?
When I first heard of this promise- I was happy and fearful at the same time.
Happy.
Because who doesn’t like affordable food? The current price of rice is at least 40.00 PHP/KG. So it’s like an 11/11 (insert shopping app name) sale. 50% OFF all year round. You’d feel like an idiot if you miss that big sale, no? But in hindsight, this question lingers, how would he do that?
Fearful.
As a rice farmer, I was fearful because I know very well the cost of producing a kilo of rice here in the Philippines. I felt like this promise will be the last nail that will seal our coffins. (see my proposed solution below)
Let me share.
Last season, I spent an average of 30,000.00 PHP per hectare. All including labor costs, materials, diesel, pesticides, fertilizers, and so on. I harvested 100 sacks of rice with an average weight of 43 kilos per sack. I sold the palay at 14.00 PHP per kilo. Based on those numbers, we’ll be able to derive the following:
Gross Income: 60,200.00 PHP
Net Income: 30,200.00 PHP
Price to produce a kilo of rice: 7 PHP
Monthly Income: 10,066.67 PHP per hectare (one season = 3 months)
Photo by Eduardo Prim on Unsplash
With those figures, I felt like I am one of the 433 Grand Lotto winners. Jackpot indeed. Why? Because I was spending 40-50K before. With the help of our Farmers Association and the new farming machines, we were able to drastically reduce our labor costs. If we haven’t reduced our labor costs, I would only be taking home a measly 3,400.00 PHP per month.
But the majority of the farmers don’t benefit from those yet. Recent statistics would indicate that the average cost of farming is 47K per hectare, with a production cost of 13.00 PHP per kilo of palay.
The Solution
So if I were the President, how would I bring down the cost of rice to 20.00 PHP per kilo?
- Importation- flood the market with imported rice. Other countries are able to produce rice way better than us. So importing rice is cheaper and more economical. It would mean death to our local farmers though. (This is my worst fear by the way and I believe importation is a band-aid solution)
Effect to consumers: Immediate
OR
- Help local farmers bring down their production costs by giving them access to affordable fertilizers, diesel, and machines.
- Support local cooperatives and associations, and provide access to farm to market amenities.
- Eradicate unscrupulous traders, there should be more options for farmers to market directly to consumers.
- Unwavering Government support. Farmers don’t need dole outs or AYUDA. What’s needed is the government’s (regardless of who the sitting president is) continuous support.
Effect to consumers: NOT so immediate
My experience will tell you that it is possible. But you know, the truth is, it will take way longer than one presidential term.
When the President of the Philippines promised to bring down the price to 20.00 PHP, most of us assumed (well, it was implied nonetheless) that he’ll do it within his term. But did everyone believe it’s possible?
I DIDN’T.
XOXO,
abnkkbsnplako
Importation is not a good option. It's one way of killing off the source of living of farmers so a certain family can buy the farmlands at a very low cost so that they can convert it to residential/commercial properties and sell them at least 10X the original price... oh... if memory serves me right, they are also doing the importation.
Your second option is a viable solution to drop the prices of rice down... maybe not exactly P20, considering the global crisis caused by the Rusi-Ukraine war, but probably close to P30 per kilo or lower.
I believe in strengthening the farmer's cooperatives, and totally getting rid of the middle traders. (that alone will probably cut down the price by about 20% to 40%). Then with the support of the government by providing adequate irrigation (I believe that will cut the cost of fuel for the water pump).
Cheap (or free, if possible) fertilizers.
I believe it can be done by any President. And could have been done a long time ago, as long as whoever the President is, will not be manipulated by their "sponsors" during the election.
I believe the farmers play a vital role in our country's economy. If they are properly supported and empowered, soon we will not be importing rice anymore but rather exporting them.
Yes it seems that people do really understand what needs to be done, but there seems to be a disconnect between ideas and actual implementation. It doesn't trickle down to where it should be. And that is just sad.
That's the sad reality...
Another sad thing is... people tend to blame everything to the government... especially the President. But what about the people secretly pulling the strings?
I think 20 PHP per kilogram of rice is really possible. If it's possible for the government to fully fund rice farming and they would also be the one to buy the harvested rice they could sell it on what prices they want. And I know all Rice Traders will not be happy if this happens but I think it's the most direct way for the price of rice to drop to 20PHP per kilo.
Traders will be furious but they will find other ways to make money.
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