Piñol clarifies gov’t report on inflation, rising prices of rice
Department of Agriculture Secretary Emmanuel “Manny” Piñol. INQUIRER.net file photo / CATHY MIRANDA
Secretary Emmanuel Piñol of the Department of Agriculture (DA) on Thursday contradicted the government’s report, saying the agriculture sector did not cause the increase in the country’s inflation in the recent months.
During DA’s budget briefing at the House of Representatives, Piñol clarified that the price of rice was “just reacting to inflation.”
The Secretary also attributed inflation to the high cost of fuel, which he said increased farmer’s cost of production.
Piñol said, inflation, as well as “very high inputs and very low production of rice,” and insufficient irrigation facilities, has caused the increase in the prices of rice.
The Philippine Statistics Authority (PSA) has reported that June inflation, which jacked up to 5.2 percent, was “primarily brought about by higher annual rate posted in the heavily weighted food and nonalcoholic beverages index at 6.1 percent.”
Article continues after this advertisementIt added that the food-alone index rose 5.8 percent in June, due to the 4.7 percent price increase in rice.
Article continues after this advertisementREAD: Inflation hit new over 5-year high of 5.2% in June
Piñol backs Tariffication Act
The DA top official also backed House Bill 7735 or the Revised Agricultural Tariffication Act being deliberated at the lower chamber.
The bill seeks to replace quantitative restrictions on imported rice with tariffs or taxes.
If the measure is enacted into law, Piñol said it would bring in at least P20 billion every year to the agriculture sector.
READ: DA: Rice tariff to help farmers
At this point, Piñol asked Congress to make sure that under the bill tariffs collected from imported rice would go directly to the agricultural sector or to the farmers.
“Para mabigyan sila ng magandang binhi para we could double the harvest of our farmers,” he said.
Albay 1st District Rep. Edcel Lagman then proposed an amendment to the bill.
Lagman said the Rice Competitiveness Enhancement Fund (RCEF) should “automatically be appropriated and released periodically to the DA without going through the General Appropriations Act” to “guarantee that it will directly benefit our farmers.”
The RCEF is a fund created under the proposed measure which would consist of all duties collected from the importation of rice. /jpv
RELATED STORY:
