Economic Planning Secretary Arsenio Balisacan on Thursday called as a “necessary measure” for food security the issuance of Administrative Order 20, which streamlines procedures and policies and removes non-tariff barriers for the importation of agricultural products.
Balisacan, the chief architect of the country’s economic policy, assured the public that AO 20 is a strategic initiative that addresses rising food prices that has driven inflation beyond the 2-4 percent target range of the central bank, the Bangko Sentral ng Pilipinas (BSP).
As a result, the BSP aggressively raised interest rates since 2022 and only paused in October after lifting the overnight rates a total 4.5 percentage points to 6.5 percent. High interest rates temper spending and investments.
“As a policy aimed at promoting the ease of doing business toward ensuring food security, AO 20 seeks to enhance the transparency and predictability of the policy regime governing the importation of food commodities,” said Balisacan.
“The objective is to enable a more efficient movement of food commodities from our ports and storage facilities to retail markets and end consumers. In the face of shortages in local production, where supply cannot immediately meet demand at affordable prices, AO 20 serves as a strategic policy tool responsive to the needs of our economy,” he added.
Former Agriculture Secretary Leonardo Montemayor warned that President Ferdinand Marcos Jr.’s issuance of the administrative order will weaken local agricultural sectors such as sugar and fisheries.
Balisacan underscored the Marcos administration’s commitment to modernize Philippine agriculture and lift those who depend on the sector out of poverty.
“However, even as the entire government works hard to implement and invest in measures that will raise the yield of our farmers and increase their incomes, we acknowledge that the impact of these interventions takes time to materialize,” he said.
“We are working diligently to overcome these challenges. Indeed, we have witnessed a significant increase in support for our agricultural sector in recent years. The Marcos Administration and our colleagues in Congress have correctly recognized the sector’s importance,” he added.
Balisacan rejected suggestions that the government is biased towards importation. He said the government only implements policy interventions after carefully considering the welfare implications on various stakeholders, particularly mica farmers and businessmen.
