OECD urges shift in Philippine agri policy

From food security to productivity growth 

MANILA, Philippines - The Philippines should abandon food security as a primary agriculture policy and instead focus on boosting production and climate change adaptation, the Organization for Economic Cooperation and Development (OECD) said.

An OECD team is in town as part of a continuing analysis, which started last year, the country’s agricultural policies.

There is a need “to improve agricultural policy performance to enhance the sector’s long-term productivity growth and resilience,” according to the presentation of the team’s initial findings to the government.

It cited, for instance, “refocusing the policy package targeting food security” which has been employed “over the past decades.”

The visit comes as the Aquino administration is exiting with failure to attain its rice self-sufficiency program and lackluster farm output performance for the past six years.

Agriculture Undersecretary Segfredo Serrano declined to comment, saying only that he is “constrained from discussing initial findings.” He said evaluation is targeted to be finished next year.

According to OECD, there has been a “priority policy” on food self-sufficiency from one administration to the next, with the previous decade particularly focus on rice.

This, in turn, has resulted in increased budget in the sector but channeled more to “public services in agriculture” than input subsidies.

Despite this, farm production growth has been low compared to the country’s peers. This was made worse by the Philippines’ vulnerability to climate change and irresponsible agriculture activities that impact the environment.

“(There is) weak integration of agro-food sector with domestic and international markets,” OECD said.

The group of developed economies suggested the government invest more on climate change adaptation as well as “improving agricultural institutions and governance systems.”

More stakeholders should also be tapped, such as small- and medium-enterprises, to develop more agricultural products and services.

The incoming Duterte administration has adopted Aquino’s rice self-sufficiency program and is aiming to do such in one to two years.

This, even as incoming agriculture chief, Emmanuel Piñol, said the government intends to monopolize rice importation, which has been spread to the private sector since 2010.

The Foundation for Economic Freedom, a group of academics, has opposed this, saying it could result into more debts for the National Food Authority (NFA) which has an estimated guaranteed obligations worth around P150 billion.

NFA is the state’s grain agency in charge of ensuring stable supply and prices of basic staples such as rice.