This month, Fortunato Villanueva Jr. will harvest unhusked rice from the property he has tended for over 30 years.
The region of Lupao, where Villanueva works, is covered with shimmering rice fields and scattered with palm palms; it is a warm, humid climate perfect for growing the staple food of Asian diets. A significant portion of the rice produced in this nation of over 109 million people is harvested in this area, around 200 kilometres from Metro Manila’s gridlock, pollution, and frenetic energy.
Yet cultivating rice is a challenging endeavour. Farmers still require backbreaking labour, fertilizer, and a balanced combination of wet and dry conditions despite increasing mechanization. Lupao is still in its infancy, and Villanueva has witnessed firsthand how weather and market dynamics alterations can devastate an agricultural season.
According to Marcos, who holds the position of secretary of agriculture, the government has put in the ceiling to relieve household strain when the cost of staple foods has skyrocketed, with rice inflation reaching 8.7% in August. Nevertheless, economists swiftly mocked the measure, claiming it would lead to pricing distortions and undermine its purported purpose of reducing inflation.
Approximately 25% of the labour force in the Philippines is engaged in agriculture, and in 2021, almost 33% of farmers made insufficient wages to meet the government’s official definition of poverty. Some are forced to borrow money to maintain their business.
The Philippine ceiling serves as a reminder of the difficulties numerous governments face in attempting to strike a balance between the supply and demand of a staple that is so important that it is regulated in most of Asia and ends up on almost every Asian dinner table.
Rice Farmers Insecurity
In the same region as Villanueva, 58-year-old rice farmer Artemio Castillo Sr. thinks the price cap might even help rice growers. Castillo told Nikkei Asia, “Even though we are farmers, we buy rice for eating too, so it’s good for us.” “The rice we set aside for ourselves doesn’t always make it until harvest time.” However, analysts still need to determine the economic viability of the price restrictions. Economist Leonardo Lanzona of Ateneo De Manila University in Manila advised against governmental price limits, arguing that the market should set levels.
With mixed feelings, farmers like Castillo and Villanueva are anticipating harvest season in the hopes that their crops will generate enough income to pay for their agricultural and living needs. When planting season began, each of the two farmers borrowed 100,000 pesos informally.
They hope that the price of rice will stabilize at a level that benefits growers and consumers alike. However, Marcos’ policies and the markets will continue to control them and other farmers.
Castillo declared, “We won’t be selling at a loss if we set prices for our rice.” “The prices will just be right; I’m not saying we’ll sell it high.”
Nikkei Asia was the first to publish an edition of this article. All rights reserved. ©2023 Nikkei Inc.
