by Lilybeth Ison/PNA
MANILA — Farmers organization Philippine Maize Federation (PhilMaize) on Friday said that recent statements of an economic team member does not reflect realities in the agricultural sector.
“I can’t help but comment (on) the recent pronouncement of our economist(s) in the cabinet as this does not reflect what is on the ground,” said PhilMaize president Roger Navarro in a statement.
“We are a nation that mostly eat rice and a little bit of corn. We cannot abandon growing in favor of importing it,” he added.
Navarro cited that in 2007 to 2008, the Philippines had the money to import rice yet there was still a shortage of the commodity. He said this happened because exporting countries refused to sell. “Then (the) price (of rice) went up to the ceiling. We don’t want a repeat (of that),” he said.
Budget and Management Secretary Benjamin Diokno earlier stated that “had the agriculture sector grown at its potential of 4 percent in 2018, full-year economic growth would have reached 6.5 percent, equal to the low-end of our revised growth target last year.”
“Looking at 2018 Gross Domestic Product (GDP) growth by industrial origin, the agriculture sector contributed a measly 0.1 percentage point to the full-year growth rate of 6.2 percent. Simply put, the farm sector had virtually zero contribution to economic growth last year,” he added.
Diokno said weak agriculture growth and last year’s inflation spike exposed the vulnerabilities of the farm sector.
The DBM is currently reviewing studies by agriculture experts in an effort to find ways of enhancing resource allocation in the farm sector, he said.
“One recommendation by the Organization for Economic Cooperation and Development (OECD), for instance, is to direct more resources in improving supply-chain connectivity (e.g. farm-to-market roads and other infrastructure) and focusing on agricultural research and extension services. This leads to long-term productivity gains as opposed to emphasizing input subsidies (e.g. fertilizers, seeds),” he added.
Diokno said the economic team will coordinate with the concerned agencies, especially the Department of Agriculture (DA) and the National Economic and Development Authority (NEDA).
“Once ready, we will share our findings in hopes of reversing the poor performance of agriculture. This will take a holistic approach, both in policy formulation and program implementation,” he said.
“Rest assured that the DBM will continue to play its part in ensuring that resources are allocated to most beneficial and most efficient purposes,” he added.
On the other hand, Navarro said the DBM chief “should calibrate his pronouncement as if they knew everything.”
“They (economic team) are just in their table planning for us in the field. They don’t even know if their words inspire or hurts farmers’ feelings,” he said.
