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PDEA seizes P6.8-M ‘shabu’ in Marawi City

PHILSTAR FILE PHOTO

COTABATO CITY — Philippine Drug Enforcement Agency (PDEA) operatives seized P6.8 million worth of “crystal meth,” locally known as “shabu,” from two dealers entrapped in Marawi City last weekend.

Gil Cesario P. Castro, director of the PDEA-Bangsamoro Autonomous Region in Muslim Mindanao, told reporters on Monday that the two men, aged 47 and 49, who yielded a kilo of “shabu” in the drug sting at a secluded area in the residential village of Saduc are set to be charged with drug trafficking.

Last April 8, PDEA-BARMM agents also seized P34 million worth of “shabu” from another drug dealer who fell in a similar buy-bust operation in Barangay Matalin in Malabang town in the second district of Lanao del Sur province. — John Felix M. Unson

NEDA supports ‘well-targeted’ RCEF as DA seeks extension

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THE National Economic and Development Authority (NEDA) said it supports a Rice Competitiveness Enhancement Fund (RCEF) that is well-targeted, amid a campaign by the Department of Agriculture (DA) to extend the fund’s op-erating life.

“NEDA is looking at that issue. There are pros, there are cons (to extending). I would like to think that keeping the RCEF and targeting it well, using it well to improve the productivity on rice is not a bad idea,” NEDA Secretary Arsenio M. Balisacan told reporters on the sidelines of a forum Monday.

“But at the same time, the President has also issued an Administrative Order reducing unnecessary barriers to imports especially when there are domestic shortages so that inflation will be averted, so things like that would need to be examined,” he said.

The Philippines has been beset by high rice prices and damage caused by El Niño, threatening the harvest and raising the prospect of supply constraints exerting upward pressure on prices.

The RCEF seeks to allocate funds from import tariffs to improve the competitiveness of the rice industry.

The fund is a component of the Rice Tariffication Law of 2019, which went into the books as Republic Act No. 11203. RCEF was originally set to operate for five years, receiving P10 billion worth of rice import tariffs each year to improve farm productivity. The tariff allocations are set to expire in June.

The DA has said it wants to extend RCEF’s life to further fund postharvest facilities, farm mechanization, and the distribution of fertilizer.

The DA is also preparing a proposal to increase the P10-billion annual allocation, Agriculture Secretary Francisco T. Laurel, Jr. said last week.

If the extension is approved, Mr. Balisacan said the government must ensure that the tariffs collected from rice imports will be dedicated to improving productivity in the rice industry.

On the proposal to increase the P10-billion allocation, NEDA Undersecretary Rosemarie G. Edillon said the performance of RCEF needs to be reviewed.

Senator Cynthia A. Villar has proposed to raise the RCEF allocation to P20 billion a year, with a six-year extension of operations.

Rice inflation hit 24.4% in March, the highest since the 24.6% posted in February 2009. Rice was a major contributor to the 3.7% uptick in March inflation. — Beatriz Marie D. Cruz

Gov’t signals preparations for onion, pork, fertilizer reserves

THE NATIONAL Price Coordinating Council (NPCC) said its views were solicited on a proposal to build up a 10-day reserve of key agricultural products, according to the Department of Trade and Industry (DTI).

DTI Consumer Protection Group Assistant Secretary Amanda F. Nograles said that the Department of Agriculture (DA) floated draft Implementing Rules and Regulations (IRR) for the Price Act covering the building up of commod-ity reserves at an NPCC meeting Monday.

“(During the meeting) we were able to point out that the target for the buffer stocks are onion, pork, and fertilizers,” Ms. Nograles said, in addition to rice, corn and sugar.

“The goal of this, in addition to creating a market-based mechanism to decrease the price by increasing the supply, is to deter hoarders and those who are engaged in illegal price manipulation,” she added.

She said that this will be the first time that the government will invoke the provision on buffer stocks since the Price Act was implemented.

Trade Undersecretary Jose Edgardo G. Sunico said that the plan is to maintain a reserve equivalent to 10 days of consumption.

“This will be enough to address problems when it comes to stabilizing our prices, and we will also coordinate with the private sector to ensure that the 10 days worth of inventory will have storage, whether that’s warehousing or cold storage,” Mr. Sunico said.

Ms. Nograles said that the IRR is currently unsigned since the members of the NPCC were only asked to comment on the draft.

“So far, there is still no indication when it will be signed or when it will be made effective. However, under Section 9 of the Price Act, there is no provision that says that there is a need to create an IRR,” she said.

“The IRR merely provides guidelines on how it will be implemented. So, we defer to the DA on their timelines and their official position as to whether they will wait to issue the IRR or actually enforce the rules,” she added.

She also said that the DA will also determine the volumes held in reserve,.

“The (Philippine Statistics Authority) doesn’t estimate the daily requirements, so we do not have a basis, but the IRR provides for a maximum of 10 days of buffer stock,” she added.

However, Ms. Nograles said that the government will need additional funding to build up the reserves as it is not provided for in the General Appropriations Act. — Justine Irish DP Tabile

Impact of import streamlining on food prices deemed uncertain

By Adrian H. Halili, Reporter

THE streamlined approval process for agricultural imports may not result in lower food prices while endangering the livelihoods of domestic producers, analysts said.

“There is no assurance that relaxing non-tariff measures will result in lower consumer prices. And it might only encourage smuggling, undervaluation and misdeclaration of imports,” Federation of Free Farmers Na-tional Manager Raul Q. Montemayor said in a Viber message.

Administrative Order No. 20 (AO 20) instructed the Departments of Agriculture (DA), Finance (DoF), and Trade and Industry (DTI) to simplify the administrative procedures for agricultural imports, as well as remove non-tariff barriers.

President Ferdinand R. Marcos, Jr. said the order was issued to ensure food security and bolster supply.

The DA was also tasked with reviewing the guidelines for importing sugar and fisheries products.

“The government (has) reduced the tariffs on prime commodities like rice, pork, and corn. Tariffs on other products are already very low. But these (measures) have not reduced retail prices,” Mr. Montemayor added.

Last year, the President approved Executive Order (EO) No. 50, extending the reduced tariff regime for rice imports to 35% for another year, applicable to shipments within or exceeding the minimum access volume.

Corn tariffs were set at 5% and 15% for in-quota and out-of-quota shipments, respectively. Pork tariffs were retained at 15% for shipments within the quota and 25% for those exceeding the quota.

Leonardo A. Lanzona, an economics professor with the Ateneo de Manila, said the order will not solve the country’s long-term supply problem.

“Allowing more imports can be a way of reducing inflation, mostly favoring consumers. General prices might have been reduced but remain higher than expected,” Mr. Lanzona said in a Messenger chat.

Inflation picked up to 3.7% in March from 3.4% in February and 7.6% a year earlier. Food inflation accelerated to 5.7%, the strongest reading since the 5.8% posted in November.

Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food, Inc. said in a Viber message that AO 20 may have a short-term impact on inflation but may “damage agricultural production over the long term.

“AO 20 will encourage and incentivize imports… If producers cannot compete with imports… farmers will leave farming and do something else to earn a living,” Mr. Fausto added.

NFA starts paying higher palay buying prices

THE National Food Authority (NFA) said Monday that it started paying the new, increased rates for procuring palay (unmilled rice), with prices paid to farmers varying by location.’’

“This is unique in a sense that provinces will have different prices depending on the conditions in the province such as prevailing farmgate price, remaining harvest, and most importantly the target palay procurement for the area,” NFA Acting Administrator Larry Lacson said in a statement.

The NFA Council, earlier approved the increased buying price for palay at P23 to P30 per kilogram (kg) for dry and clean palay and P17 to P23 per kg for fresh palay.

Clean and dry palay should at least be 90% pure and have a moisture content of no more than 14%, while fresh and wet palay must have a moisture range of 22-29.9%.

“The NFA Council had to raise buying prices for palay after prolonged high farmgate prices,” it said, citing the need to obtain supply in the face of competition from private traders.

Traders were reportedly buying dry palay at P27 to 30 per kg, according to the Department of Agriculture (DA).

The old purchase prices for dry and wet palay were set last year at P19-P23 (dry) and P16-P19 per kg (wet).

“This new pricing scheme will mark a new era for NFA palay buying,” Mr. Lacson added.

The NFA said that it discontinued the one-price scheme for palay purchases to consider the support price provided by some local government units as an alternative to private traders.

The agency is required to maintain a buffer stock of rice of about 300,000 metric tons (MT), which is sufficient for nine days’ consumption.

The national inventory of rice declined 3% to 1.37 million MT, the Philippine Statistics Authority said.

Stocks held by NFA facilities declined 59.9% year on year to 41,290 MT. — Adrian H. Halili

PHL, Qatar to promote expanded visitor flow

THE Department of Tourism (DoT) said it signed a memorandum of understanding (MoU) with Qatar State Minister for Foreign Affairs Sultan bin Saad Al-Muraikhi to expand two-way tourism as well as conferences targeted at both countries’ business communities.

“Fortifying tourism cooperation between the Philippines and Qatar by way of the signing of this memorandum of cooperation forges a stronger partnership for increased tourism exchanges between our nations,” Tourism Sec-retary Ma. Esperanza Christina G. Frasco said in a statement Monday.

“With this significant step forward, we unlock the opportunities for growth as we explore new avenues for collaboration, particularly on the aspect of tourism and business events,” she added.

The MoU was among the almost a dozen agreements signed during Qatar Emir Sheikh Tamim bin Hamad Al Thani’s official visit to Manila.

Under the agreement, the Philippines and Qatar will encourage two-way tourism by creating favorable conditions for visitor movement and communications.

Both countries pledged to encourage tourism investment, the exchange of expertise, statistics, and best practices, familiarization visits for media and tourism experts, and the development of tourism worker skills.

The two countries also agreed to stage exhibitions and conferences for business visitors.

“A joint working team between the Philippines and Qatar will be formed to undertake and set up the work program, execution, follow-up, and evaluation of the activities in line with the implementation of the provisions of the agreement,” the DoT said.

For 2023, the Philippines received 10,438 visitors from Qatar. — Justine Irish D. Tabile

Proclamations targeted for 11 more ecozones

THE PHILIPPINE Economic Zone Authority (PEZA) said it hopes to obtain proclamations for 11 more economic zones (ecozones) this year following two proclamations in April.

On the sidelines of the Eco-Industrial Parks and Green Technologies forum Monday, PEZA Director General Tereso O. Panga said that President Ferdinand R. Marcos Jr. is set to inaugurate the MetroCas Industrial Estates-Special Eco-nomic Zone in Cavite this week.

“We had two for this month. We had MetroCas, (which is) a manufacturing economic zone in Tanza, Cavite. The other one is ArcoVia City, an IT park in Pasig,” Mr. Panga said.

“But there are 11 more economic zones that we are eyeing to be proclaimed by the President. In fact, from what we gathered, the President would want to proclaim economic zones at his State of the Nation Address,” he add-ed.

PEZA is also looking at the release of guidelines this year for water and power to make ecozones more compliant with environmental standards.

“We already have consultants for this. We have met with the United Nations Industrial Development Organization and the International Finance Corp. All these are on the calendar,” he said.

The guidelines are also meant to make ecozones more competitive when it comes to energy and water efficiencies.

“This is the ecozone model now because the locator companies that we’ve been hosting are now demanding that they see all these elements in the ecozones: embedded power, access to clean and green production, and re-newable energy,” he said.

“So, without these facilities inside the ecozones, we can no longer be competitive because we’re up against other ecozones in ASEAN that are also aided by the different donors pushing for a clean and green pro-duction agenda. So it’s now a must,” he added.

Mr. Panga said that PEZA’s priority is to roll out the new guidelines, which will initially apply to prospective locators.

“But the idea is to make it applicable to all, given a certain window for them to catch up with these standards,” he added. — Justine Irish P. Tabile

NEDA seeks extra P100 million in funding for innovation grants

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THE NATIONAL Economic and Development Authority (NEDA) is proposing to increase next year’s funding for programs and projects that encourage innovation by P100 million.

On the sidelines of the annual National Innovation Day forum, NEDA Undersecretary Rosemarie G. Edillon said economic planners are proposing to double the budget for innovation grants to P200 million.

“For next year, we’re hoping there will be more (funding,) because obviously, there’s a lot of demand,” she told reporters.

The fund supports the government’s push to upskill innovators as authorized by Republic Act No. 11293 or the Philippine Innovation Act.

The proposed funding will form part of NEDA’s budget for next year, which will be submitted to Congress in August.

The government’s National Innovation and Strategy Document (NIASD) identifies key areas for innovation such as learning and education; health and well-being, food and agribusiness; finance; and manufacturing and trade.

The NIASD added that priority areas which also need innovation include public administration; transportation and logistics; security and defense; energy; and the blue economy and water.

The private sector may contribute to the innovation grants, Ms. Edillon said.

By mid-year, the National Innovation Council will meet ahead of the launch of the Presidential Filipinnovators Award, Ms. Edillon said. The awards are expected to take place next year.

“We are developing the guidelines for now so we put in budget for that, because we want to give national prominence to the importance of innovation as key drivers to sustainable growth,” NEDA Secretary Arsenio M. Balisacan told reporters separately.

The government’s innovation push is expected to generate more jobs, and attract growth and investment.

“By providing some incentives and some ways of recognizing innovation, we hope to be able to prop up and mainstream innovation as part of our culture,” the NEDA Chief added.

The Philippines climbed three sports in last year’s Global Innovation Index (GII), ranking 56th out of 100. — Beatriz Marie D. Cruz

Gov’t urged to improve agri info system

THE government should improve digital platforms for distributing agricultural information, the Philippine Institute for Development Studies (PIDS) said at an online seminar Monday.

“There should be a centralized repository or portal for all government agri-sites and applications, for the convenience of farmers,” Ivory R. Galang, a supervising research specialist for PIDS, said.

Ms. Galang said agricultural datasets and advisories should be consolidated on a single platform.

In a study, PIDS recommended the establishment of a high-level steering committee to oversee the harmonization of government data within digital platforms.

“We need to harmonize conflicting advisories or recommendations. It needs to be fixed so that there will be no confusion and the information given becomes effective,” she added.

It added that the creation of a single government portal that links to the various advisory tools should unify the numerous farm advisory applications.

“We are suggesting a single portal where different applications are housed, to make it easier for farmers and agricultural extension workers,” Ms. Galang said.

However, PIDS said 42.4% of farmers and fisherfolk get their information through training, coaching, or mentoring.

It added that only 4.8% use the internet.

Due to the lack of infrastructure for information and communications technology in far flung areas, uneven access to this service becomes a problem,” she said.

Meanwhile, Ms. Galang added that there should be a centralized online marketplace for micro, small and medium enterprises selling agri-food products.

“We are envisioning a single government e-commerce platform through the (Department of Trade and Industry) so that they can consolidate the various platforms and avoid confusion,” she added. — Adrian H. Halili

Building materials wholesale price growth slows in NCR

PRICE GROWTH of construction materials in the National Capital Region (NCR) eased at the wholesale level in March, the Philippine Statistics Authority (PSA) said Monday.

Citing preliminary data, the PSA said the March construction materials wholesale price index (CMWPI) rose 0.8%, easing from 1% a month earlier and 7.5% a year earlier.

In the first quarter, the CMWPI averaged 1.1%, well off the 8.4% year-earlier pace.

It was also the weakest CMWPI reading since the 0.7% posted in December 2019.

Of the 19 categories of commodity, five posted accelerated price growth, seven saw easing growth, five were unchanged, and two commodities posted price declines.

Driving the CMWPI rise was fuel and lubricants which posted price growth of 8.7%, up from 8% in February.

Commodities where price growth slowed were hardware (3.4% from 4.8%); G.I. sheets (3.2% from 3.6%); painting works (2.3% from 4.1%); electrical works (1.8% from 2.7%); structural steel (1.6% to 2.5%); plywood (1.3% from 2.3%); and metal products (0.8% from 1.1%)

Commodities where growth was flat were plumbing fixtures and accessories or waterworks (3.7%); doors, jambs, and steel casements (1%); lumber (0.6%); concrete products (0.5%); and asphalt (0%).

The indices for reinforcing steel and cement declined in March at minus 1.1% and minus 1.7%, respectively. — Lourdes O. Pilar

Commuter group sees major fallout from PUV phaseout, PNR closure

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THE suspension of some Philippine National Railways (PNR) commuter services and the looming jeepney phaseout will have major economic consequences, an interest group representing the commuting public said.

Primo V. Morillo, convener of group The Passenger Forum, said in a Viber message: “A large chunk of commuters are workers and taking out their transport options will surely affect our economy.”

The reduction of transport options will cause many workers to be late for work, Mr. Morillo said, which would impact productivity and overall growth.

Some of the PNR’s commuter routes will be suspended to facilitate the construction of the North-South Commuter Railway.

Leonardo A. Lanzona, who teaches economics at the Ateneo de Manila, said the government must push for more transportation infrastructure outside Metro Manila to decongest urban areas.

“There should be more infrastructure, but these should be placed outside of Metro Manila. This will decongest Metro Manila and allow a broader and more balanced development program,” he said via Messenger chat.

Nearly 70% of Filipinos rely on road-based public transport, AltMobility PH Director Ira F. Cruz said.

“We strongly recommend that the (Public Utility Vehicle [PUV] modernization) program be revisited to ensure that it addresses the needs of everyone in the sector and, ultimately, commuters,” he said via Viber.

PUV drivers have until April 30 to consolidate under a cooperative or corporation to facilitate the acquisition of modern vehicles. Those failing to do so will not be allowed to ply their routes.

President Ferdinand R. Marcos, Jr. has promised that the government will fast-track railway projects to ease economic losses from traffic.

However, railway projects alone will not solve the traffic crisis if four-wheeled vehicles continue to take up road space, Mr. Cruz said.

“While the construction of a good rail network is important, the government must equally focus on fixing road-based transport services such as jeepneys, and promoting active transportation such as cycling and other mobility devices that complement rail services,” he noted.

The government must also implement a feeder system connecting commuters to train stations, he said.

“In order to create a functioning transportation service, different transportation systems must be orchestrated to complement each other.”

He added that the Transportation department’s proposal to include a dedicated lane for motorcycles along the Epifanio de los Santos Avenue (EDSA) is a step towards accommodating commuters’ needs.

“It’s very important to make sure that this exclusive lane is not simply viewed as a restriction on the movement of motorcycles along EDSA but as a form of protection for them,” he said.

 

Mr. Cruz said the Transportation department must lead the streamlining of transport policy. Legislators must also fast-track key transport measures like the Philippine Bicycle Act and the Commuter Bill of Rights. — Beatriz Marie D. Cruz

China is committed to resolving maritime disputes through talks, official says

CARLOS DE SOUZA-UNSPLASH

QINGDAO, China — China remains committed to resolving maritime disputes with other countries through dialogue but will not allow itself to be “abused,” a top military official said at a meeting of senior foreign naval officials in the port city of Qingdao on Monday.

The sea should not be an arena where countries can flex their “gunboat muscles”, added Zhang Youxia, vice chairman of the Central Military Commission and China’s second-highest-ranking military official.

“Reality has shown that those who make deliberate provocations, stoke tensions, or support one side against another for selfish gains will ultimately only hurt themselves,” Mr. Zhang said during the opening ceremony of the Western Pacific Naval Symposium at the upscale St Regis hotel.

The comments were an apparent reference to growing tensions in the South China Sea, where Washington treaty ally Manila is in a fraught standoff with Beijing over the strategic waterway, a potential flashpoint for US-China relations.

Zhang also told the gathered delegates that “carrying out maritime containment, encirclement and island blockades will only plunge the world into a vortex of division and turbulence.”

The event overlaps with annual U.S.-Philippines large-scale joint military drills, which begin on Monday and will be held outside Philippine territorial waters for the first time.

Tensions are particularly high around the Second Thomas Shoal in the South China Sea, where Manila has accused Beijing of “harassment,” including the use of water cannons against Philippine vessels.

The symposium is a rare opportunity for countries with opposing regional interests to exchange views. Pacific Fleet Commander Admiral Stephen Koehler is attending from the United States. Other delegations include Australia, France, India, Russia and Britain.

The Philippines did not attend despite being a member nation of the forum.

“This is a very good opportunity to hold bilateral talks with each navy — not only on AUKUS, but on broader maritime topics,” said Captain Takuo Kobayashi, a senior official with the Japanese naval delegation. “The Chinese Navy are building up their muscles in the South China Sea quickly, so I’m paying a lot of attention to the Chinese Navy’s developments.” — Reuters