Press Release
June 18, 2009

CHIZ: TRIPLE BUDGET FOR AGRI RESEARCH

Opposition Sen. Chiz Escudero yesterday called on government to increase funding for agricultural research & development (R&D) to counter rising food costs and lessen dependence on food imports.

"When multi-national firms record lower revenues, they invest more in R&D to discover new techniques to lower production costs and maximize output from current technology. We should do the same thing to save on foreign currency," he stressed.

In 2003, total research spending was only 0.11 percent of GDP, or around P2.4 billion, and was half of 1992 figures.

The 2003 ratio was also lower than other Southeast Asian (SEA) countries like Malaysia (0.69 percent) and Thailand (0.24 percent).

"The rapid growth achieved by some SEA countries in the 1990s can be partially attributed to R&D and new technology," he said, noting that Thailand and Vietnam became self-sufficient in rice and thus were able to cut imports.

In January this year, rice prices rose by 28.3 percent from the same period last year, eggs by 2.2 percent and meat by 7.8 percent, while total spending for food imports reached $4.079 billion in 2007.

The most recent data from the Philippine Center for Agricultural Research and Resource Development (PCARRD) showed that total agricultural and non-agricultural R&D expenditures as a percentage of Gross Domestic Product (GDP) dropped from 1992 (P52.9 billion) to 2003 (79.6 billion).

PCCARD is the central coordinating body in charge of agricultural R&D and is under the Department of Science & Technology.

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