President Ferdinand Marcos issued two new executive orders (EO) that seek to ensure that farmers will get a ‘fair price’ for their unmilled rice and a ready market for their other produce.
Marcos signed last Saturday EO 100 which imposed a floor price for rice to protect farmers from unscrupulous traders during ‘volatile market prices, particularly during the peak of harvest seasons when farmgate prices often drop due to oversupply, weather-related impacts, or unfair trading practices.’
He also issued EO 101 which directed all national and local government agencies to fully implement Republic Act (RA) 11321, which establishes the Farmers and Fisherfolk Enterprise Development Program.
‘In view of the rising production costs coupled with climate-induced production risk and the widening profit margin gap between farmgate price and retail prices, the government recognizes the urgent need to guarantee a fair and just return to farmers by setting a floor price that covers production costs and provides reasonable income while ensuring the affordability and stability of rice supply for consumers,’ EO 100 read.
The EO was issued after the average farmgate price of the Philippines’s food staple fell to P8 per kilogram, which is below the production cost.
EO 100 ordered the creation of a Steering Committee chaired by the Department of Agriculture while the Department of the Interior and Local Government will serve as vice chair. Its other members are the Departments of Trade and Industry, Social Welfare and Development, Agrarian Reform, and the National Food Authority.
The committee was tasked to set the floor price for paddy rice that will be procured by local government units and national government agencies from accredited farmers and fisherfolks cooperatives and enterprises (FFCEs) under RA 11321, or the ‘Sagip Saka Act
The floor price will be based on cost of production, prevailing market prices, reasonable margins for farmers, welfare of farmers and consumers, and ‘other relevant factors.’
The committee will conduct regular monitoring to ensure that the floor price is being implemented and those which violate the policy will face administrative sanctions.
National government and instrumentalities will be allowed to purchased unmilled rice and store it in public facilities.
Meanwhile, EO 101 directed the DA to establish Sagip Saka desks in its regional and field offices to register farmers and fisherfolks.
RA 11321 created the Farmers and Fisherfolk Enterprise Development (FFED) Council-created under the Sagip Saka Act to ensure the EO101’s implementation.
‘Big win’
House Speaker Faustino Dy III and Senator Francis Pangilinan said the two EOs will allow farmers to ‘live with dignity.’
Dy said the twin directives show that the administration understands the difficulties faced by those who work in the country’s farms and coastal communities.
‘Once again, President Marcos has proven his genuine concern for our farmers. Through EOs 100 and 101, he is protecting their livelihood, reinforcing food security, and delivering long-overdue justice to those who have long toiled in our fields and seas,’ Dy said.
‘For years, farmers have been forced to sell their harvest for less than what it’s worth. This policy gives them the fair value they deserve.’
Pangilinan said the two EOs represent a ‘big win’ for farmers and the agricultural sector as a whole.
‘This is such a big victory for our farmers and the farming sector. We thank the President and all those who helped us push for these two EOs. These EOs demonstrate that when the government listens to farmers and takes decisive action, we can ensure that those who feed the nation are able to live with dignity,’ he said.
‘When we advocated for the Sagip Saka Act, this is the kind of support we envisioned for our farmers and fisherfolk. It is high time they reap the rewards of their hard work.’
The Sagip Saka Act, which was principally authored and sponsored by Pangilinan, allows national government agencies and local government units to purchase food directly from farmers and fisherfolk without the need for public bidding.