E-market for rice trade in the works

The Department of Agriculture (DA) is working to create a digital market for rice trade as part of efforts to modernize the sector and increase farmers’ income.

It signed a memorandum of understanding (MOU) with the National Irrigation Administration (NIA) and Department of Trade and Industry (DTI) on Friday to “ensure an efficient rice supply chain and create an alternative market” for the national staple.

The agreement will likewise promote the department’s Integrated Rice Supply Chain Development Program, which aims to develop a business-to-business online market platform and provide an alternative market access for rice buyers and sellers.

“The MOU establishes a formwork for collaboration in the development and implementation of a project that holds the promise of transforming our rice supply chain,” Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement over the weekend.

The DA’s agreement with the DTI and NIA came a month after Tiu Laurel unveiled his office’s “modernization strategy” for the agriculture sector, saying it would help achieve food security and cut agricultural imports.

Economists previously warned that the El Niño climate pattern could pull down agricultural output this year, as the threat of a prolonged drought could significantly impact crop production.

Palay output reached a record-high 20.06 million metric tons (MMT) in 2023, translating to 13.2 MMT of rice produced, data from the Philippine Statistics Authority showed.

The DA said this could reduce rice import volume to 3.5 MMT from 3.8 MMT in 2022.

Farmers previously pointed out the government lost P7.2 billion in tariff revenues last year due to the Bureau of Customs’ alleged undervaluation of rice imports. INQ