August 15, 2023

 

Philippines allocates nearly US$3.5 billion for agriculture sector in 2024 budget

 

The Philippines' Department of Budget and Management (DBM) has allocated approximately PHP 200 billion (~US$3.5 billion; PHP 10 = US$0.18) for the country's agriculture sector in the proposed PHP 5.768 trillion (~US$101 billion) National Expenditure Programme (NEP) for the year 2024, Daily Express reported.

 

As disclosed in a recent statement, the DBM has allocated PHP 197.84 billion (~US$3.4 billion) for the Philippines' Department of Agriculture (DA) for the upcoming year. This allocation marks a 6% increase compared to the current-year funding of PHP 186.54 billion (~US$3.2 billion).

 

The decision to enhance the budget allocation for the agriculture, forestry, and fishing (AFF) sector comes in response to the sector's growth of 2.2% and its significant contribution of 9.1% to the country's first-quarter gross domestic product (GDP) growth. The goal is to sustain this growth trajectory and bolster agricultural output.

 

President Ferdinand Marcos Jr. said that to continue the upward trajectory of agricultural output and meet the Philippine Development Plan (PDP) goal of increasing the Philippines' food security index, the government will increase funding for the national programmes of the Department of Agriculture (DA) on rice, corn, livestock, and high-value crops, among others.

 

Amenah Pangandaman, the Budget Secretary, outlined the priority areas for the 2024 expenditure, emphasising food and water security. She highlighted that the NEP will support programmes to enhance local production of major agricultural commodities such as rice, corn, and high-value crops. The focus will be on productivity enhancement, soil resource management, agricultural support services, constructing farm-to-market roads, and mitigating risks related to factors like El Nino through the buffer stocking programme.

 

A significant portion of the proposed budget for 2024, approximately PHP 30.9 billion (~US$542 million), will be allocated to the National Rice Programme. Additionally, PHP 10 billion (~US$175 million) will be earmarked for the Rice Competitiveness Enhancement Fund (RCEF), aimed at providing assistance to farmers through initiatives like rice seed development, loan provision, and agricultural equipment procurement.

 

The DBM revealed that the broader food security strategy encompasses programmes like the National Corn Programme, National Livestock Programme, and National High-Value Crops Development Programme. The Sugar Regulatory Administration is set to receive PHP 1 billion (~US$17.5 million) for its Sugarcane Industry Development Programme, focusing on enhancing farmers' skills and productivity. The National Fisheries Programme will be allocated PHP 6.9 billion (~US$121 million), with the goal of elevating agri-fishery practices and product quality, along with improving income for farmers and fisherfolk.

 

Additionally, investments will be made in the Boosting Aquaculture Production Programme to address a 10% target increase in local fish production and fill supply gaps. Initiatives like the National Soil Health Program and the National Agriculture, Aquatic, and Natural Resources (AANR) Sector Research and Development Programme, funded at PHP 1 billion (~US$17.5 million), highlight a comprehensive strategy to improve natural resource conditions.

 

The construction of agricultural infrastructure is essential to expand food systems and productivity. The DBM revealed that the Farm-to-Market Road Programme of the DA, which allocates PHP 17.3 billion (~US$303 million), will facilitate the construction of over 1,144.58 km of roadways, streamlining goods transport and reducing expenses.

 

Efforts to combat water scarcity include a budget of PHP 31.2 billion (~US$548 million)  for the National Irrigation Administration, aiming to develop 31,548 hectares of irrigated agricultural land.

 

The budget allocations also encompass various programmes like the Buffer Stocking Program of the National Food Authority, insurance programs for farmers, credit and financing initiatives, and water supply and sanitation projects.

 

-      Daily Express