Day: May 18, 2023

After hiking key rates for nine consecutive rate setting meetings since May 2022, Philippine monetary authorities on Thursday maintained the Bangko Sentral ng Pilpinas’ (BSP) policy rates due mainly to deceleration of inflation rate. Thus, the overnight reverse repurchase (RRP) rate is still at 6.25 percent, the overnight repurchase (RP) rate is at 6.75 percent and the overnight deposit rate is at 5.75 percent. ‘Based on the sum of new information and its assessment of the impact of previous monetary policy actions, the Monetary Board decided that a pause in monetary policy tightening was appropriate,’ BSP Governor Felipe Medalla said in a briefing on Thursday, Thursday’s pause in the policy-making MB’s rate tightening moves is a change after the hikes in the key rates from its record-low 2 percent, with the upward adjustment aimed at helping address the jumps in inflation rate. Relatively, the MB slashed the central bank’s average inflation forecast for this year from 6 percent to 5.5 percent and the 2024 projection from 3.1 percent to 2.8 percent. Medalla said these changes ‘continue to reflect a gradual return of inflation to the target band of 2-4 percent over the policy horizon.’ He said inflation expectations for 2024 to 2025 ‘are steady and within the target range.’ He, on the other hand, noted that while domestic expansion remains robust in the first three months of this year ‘demand indicators have also pointed to a potential moderation in the recent months, suggesting that previous policy rate increases by the BSP continue to work their way through the economy.’ He said the Board is also ‘encouraged by the recent mounting of whole-of-government actions to ease constraints on food supply.’ He, however, pointed out that ‘even as headline inflation has continued to decelerate with slower increases in the prices of food and energy-related items, core inflation has only eased marginally.’ Domestic inflation rate hit its 14-year high if 8.7 percent last January but has slowed since then, with the April figure already at 6.6 percent, from month-ago’s 7.6 percent. Core inflation, which excludes volatile oil and food items, is almost flat at 7.9 percent last April from month-ago’s 8 percent. Inflation rate is expected to slow to within-target levels as early as in September this year. Medalla said balance of risks to inflation outlook ‘remains largely tilted towards the upside owing to persistent constraints in the supply of key food items, the potential impact of El Niño on food prices and utility rates, as well as the effects of possible additional adjustments in transportation fares and wages.’ These are, however, countered by the lower-than-expected global economic recovery, he said. ‘The Monetary Board also deems it necessary to keep the policy interest rate at its current level over the near term, as ongoing price pressures continue to warrant close monitoring. A prudent pause also allows monetary authorities to further assess how macroeconomic and financial conditions will evolve in view of tighter global financial conditions,’ he said. Medalla said any changes in the BSP’s key rates will partly be affected by the developments on inflation, their inflation forecasts, and adjustments in the Federal Reserve’s key rates. ‘So, in short, the more likely scenario is neither a cut nor an increase in the next two or three policy meetings,’ he said. Asked for any changes in bank’s reserve requirement ratio (RRR) as early as June this year, Medalla said this is always on the table because the country’s RRR remains high and because the regulatory relief extended to loans for small and medium enterprises (SMEs) will expire in end-June this year. ‘Right now, loans to medium and small scale industries qualify as requires until they mature. So if we decide not to extend that policy then we must offset it by cutting reserve requirements,’ he said. RRR have been reduced by a total of 200 basis points in 2020 to 12 percent for universal and commercial banks (U/KBs) as part of the central bank’s move to encourage lending during the pandemic to shore up economic activities. The central bank chief said changes in the RRR are related on operations and not monetary policy. ‘We adjust the size of our facilities to make sure that such changes in the reserve requirement policy have no effect on money supply,’ he added.

Source: Philippines News Agency

Fuel surcharge is further reduced from Level 5 to Level 4 in June, the Civil Aeronautics Board (CAB) said Thursday. Depending on the distance, the fuel surcharge under Level 4 may range from PHP117 to PHP342 for domestic flights; and from PHP385 to PHP2,867 for international destinations. The fuel surcharge being implemented for this month under Level 5 ranges from PHP151 to PHP542 for domestic, and from PHP498 to PHP3,703 for international. “The drop in fuel surcharge to Level 4 in June, the lowest in the last 15 months, will help stimulate air travel. This is a great development to the traveling public, especially for families and college barkadas who are now starting their school breaks,” Cebu Pacific President Xander Lao said in a statement Thursday. AirAsia Philippines, on the other hand, said the savings would be advantageous to the passengers. “The additional savings for our guests, who will not have to bear additional costs, is expected to sustain demand for travel as the summer season comes to a close,” it said in a statement. It added that any form of reduction in air travel costs is a welcome development as passengers may use the savings as additional budget for travel. Flag carrier Philippine Airlines, meanwhile, said it would comply with the lower fuel surcharge matrix that takes effect for next month’s ticket purchases. In an advisory signed on May 16, the CAB said airlines wishing to impose or collect fuel surcharge for June 1-30 must file their application with the Office of the Executive Director on or before the effectivity period. The applicable conversion rate for USD1 is PHP55.45, it said.

Source: Philippines News Agency

The Provincial Veterinary Office (PVO) of Negros Oriental on Thursday announced that the dead pigs reported in Dauin town last week have tested negative for African swine fever (ASF). This was shown in laboratory results from the Bureau of Animal Industry (BAI) Central Office in Quezon City, said Provincial Veterinarian Belinda Villahermosa during a meeting with hog raisers and suppliers at the Negros Oriental Convention Center here. The swine deaths in Barangay Maayong Tubig were reported last week from at least three households. Initial investigation showed that some of the pigs were fed with swill by their owners. Although they were not ASF-related cases, Villahermosa said that there are still some tests to be conducted to determine the cause of their deaths, which could have been triggered either by classical swine fever and porcine reproductive and respiratory syndrome — a widespread viral disease that affects domestic pigs. As this developed, the provincial government is expected to issue a new executive order regarding the regulation on the shipment of pork and by-products outside of Negros Oriental as the existing pork ban expires on May 18. Villahermosa also urged the general public and stakeholders ‘to observe strict biosafety and biosecurity measures’ to ensure that the province will continue to remain ASF-free. Meanwhile, Board Member Woodrow Maquiling, during the same meeting, told hog raisers, backyard farmers, suppliers and other stakeholders that the board will address concerns regarding the seven-day quarantine of transportation used for shipping these animals to the BAI here. Maquiling said the seven-day period is prescribed for the disinfection of these vehicles to ensure that they are not carrying ASF or any other viruses that would affect pigs and other animals.

Source: Philippines News Agency

Bago City, the top rice-producing local government unit in Negros Occidental and Western Visayas, has begun preparations to counter the effects of the El Niño weather phenomenon that could cut farm yield. Known as the rice granary of the province for its vast rice plantations, the city just south of Bacolod produces more than 30 percent of the rice supply of Negros Occidental. Marvin Blance, city agriculturist-designate, said on Thursday the Office of the City Agriculturist has laid out an El Niño action plan that includes interventions to cushion the impacts of the dry spell on crops, particularly rice. ‘We encourage our farmers to plant early-maturing and drought-resistant varieties and to practice direct seeding method as a water-saving technology. At the same time, they can alternate wetting and drying method for water management in their farms,’ he said. Blance said the National Irrigation Administration has approved a water delivery rotation schedule for the Bago River Irrigation System (BRIS), which supplies water to about 11,000 hectares of rice fields in the city. ‘They approved a scheduling for our north and south areas of coverage,’ he said. Aside from Bago, the BRIS also serves farmlands in the neighboring cities of Bacolod and La Carlota, as well as the municipalities of Murcia, Pulupandan, San Enrique, Pontevedra, and Valladolid. Other interventions include the distribution of agricultural inputs, such as palay and vegetable seeds and fertilizers, and the provision of pump and engine sets and shallow tube wells. ‘The tail-end areas are the most vulnerable since they cannot be reached by irrigation. We can augment the rice farms with water supply through pump and engine sets and shallow tube wells,’ Blance said. Data from the Office of the City Agriculturist showed that Bago, which has a rice sufficiency level of 200 percent, recorded an average rice production output of 4.2 metric tons per hectare in 2022. This year, the target is to increase yield to 4.4 metric tons per hectare. The threat of El Niño, however, could pose a challenge to the city’s rice production and consequently affect local food security. ‘Rice crops and even vegetables need water. Without sufficient water supply, it will result in stunted growth and reduced production. We know that once El Niño takes effect, it can affect food security. We also need to watch out for pest infestation. That’s why we need to mitigate the effects of El Niño,’ Blance added.

Source: Philippines News Agency

The Department of Agriculture (DA) on Thursday highlighted how the use of biofertilizers may help rice production in the country become much more balanced, sustainable and cheaper. During the Laging Handa public briefing, DA Undersecretary for Rice Industry Development Leocadio Sebastian explained the advantages of using local biofertilizers in improving production and yield. “We are going into a more sustainable, eco-friendly, and climate-friendly rice production in the Philippines with that kind of technology,” he said. According to DA, biological fertilizers or biofertilizers are substances which contain living microorganisms that help increase the supply of nutrients to its host plant while improving the fertility or health of the soil. Sebastian said that with the long-term use of synthetic fertilizer alone, the soil quality might deteriorate even more. “Maraming mga nutrient na wala na sa ating lupa at kapag patuloy pa rin nating gamitin ang inorganic ay talagang hindi na rin aangat masyado ang ating production, ang ating ani (There are many nutrients that have been removed in our soil and if we continue to use inorganic, then our production and yield will not increase),” he said. The undersecretary, however, clarified that the use of biofertilizers does not mean other types of fertilizers should already be abandoned. “Iyong balanced fertilization mayroon kang organic na magpu-provide ng mga micronutrients, vitamins, mga iba-ibang nutrient (The balanced fertilization [refers to the use] of organic [fertilizer] which will provide micronutrients, vitamins, and other nutrients),” Sebastian said. “Iyon namang biofertilizer, siya naman ay makakatulong na mag-improve sa pag-absorb ng halaman at saka pagkuha rin ng nitrogen sa atmosphere para balanced ang diet ng ating mga halaman (While the biofertilizer is the one helping to improve the absorption of plans and its collection of nitrogen in the atmosphere to provide a balanced diet for the crop),” he added. For those wishing to use biofertilizers, the official said affordable and locally produced ones are available in the market. Farmers have options ranging from PHP500 to PHP5,000 worth of biofertilizer, depending on its ingredients and technology used, which is already good for 1 hectare. “Urea natin ngayon nagri-range siya sa 1,300 to 1,800 depende sa lugar mo iyong isang sako. So, kung dalawang sako iyon mahigit ng dalawang libo o tatlong libo iyong dalawang sako ng urea. Habang kapag gumamit ka ng biofertilizer pinakamahal na iyong magagamit mo ay 1,000 or 1,500 ang presyo bawat ektarya ang gamit (Our urea now ranges from PHP1,300 to PHP1,800 per sack depending on your area. So, if you use two sacks, it’s more than PHP2,000 or PHP3,000. But if you use biofertilizer, the highest may be at PHP1,000 or PHP1,500 per hectare),” Sebastian said. Local biofertilizers The DA, earlier, said that it will prioritize local producers of biofertilizers in the country, instead of imported ones. “Hindi puwedeng imported na naman. Iyong teknolohiya naman ay galing sa abroad, dapat dito siya ginagawa para hindi tayo aasa na manggagaling pa sa abroad iyong produkto (It should not be imported again. Then if the technology is coming from abroad, it should be made here, so that we will not rely on other countries for the product),” he said. To date, biofertilizers are being used in the USA, Europe, India, China and other neighboring countries such as Vietnam, Malaysia, and Thailand. Besides the requisition for local producers, bidders for the biofertilizer procurement must also be able to train or educate farmers for the technology. Moreover, the biofertilizer itself must be registered and considered “cost-effective,” meaning sold at an affordable price or may be at a higher price but resulting in a much higher yield. As of now, the DA plans to launch the large-scale promotion of biofertilizers by October.

Source: Philippines News Agency

Agusan del Norte’s provincial government and the United Nations Development Program (UNDP) signed a memorandum of understanding (MOU) Thursday to build institutional and community resilience programs and services in the province. The MOU signing, held in this city, was led by Governor Maria Angelica Rosedell Amante and UNDP deputy resident representative Edwine Carrie as witnessed by Vice Governor Enrico Corvera and municipal mayors of the province. The agreement aims to enhance the capacities of the local government units (LGUs) in disaster response and climate change and will be implemented through the SHIELD program spearheaded by the UNDP, its partners, and the Australian government. SHIELD, which stands for Strengthening Institutions and Empowering Localities Against Disasters and Climate Change, currently covers 11 provinces that are considered most vulnerable to disasters and climate change. Under the MOU, both parties will pursue cooperation in the implementation of informed and inclusive resilience actions, including risk-based land use and development planning, budgeting, and investment programming. The parties will also develop bankable project proposals for climate and disaster-relevant activities, and establish multi-stakeholder partnerships in the planning, implementation, and monitoring of resilience actions. For the next six years, the partnership is also expected to establish data ecosystems to support risk-informed planning, resource allocation, and decision-making processes, as well as the establishment of monitoring, evaluation, and learning systems. ‘The expertise and guidance of the UNDP, through the SHIELD under this MOU, will help us in our disaster response efforts, especially in the formulation and implementation of climate-resilience programs and services,’ Amante said in her message during the signing activity. She also urged the municipal mayors to study the content of the MOU and appoint a focal person who would focus on the implementation of the SHIELD program in their localities. Amante thanked the UNDP, the Australian government, and partner agencies for making Agusan del Norte one of the provinces to benefit from the program.

Source: Philippines News Agency