Addressing hunger by managing inflation
Hunger among Filipinos has surged to alarming levels, with 22.9 percent of families experiencing hunger in September 2024, from 17.6 percent in June, according to the latest Social Weather Stations survey. This marks the highest hunger rate since the 30.7 percent recorded during the COVID-19 pandemic in September 2020. Among families identifying as “poor,” the rate is even higher at 29.3 percent, underscoring the severe food insecurity faced by vulnerable households.
Current situation
Rising food prices remain a key driver of hunger. This shows that despite easing inflation figures, keeping prices of food in check should remain a key priority of the government. Headline inflation in October 2024 was 2.3 percent, slightly higher than the 1.9 percent in September but lower than the 4.9 percent in October 2023. Food inflation (excluding non-alcoholic beverages) stood at 3 percent.
Food prices nationwide have risen compared to last year, according to Philippine Statistics Authority data. Regular milled rice averaged P50.2 per kilo in October 2024, up from P45.8 in the same month in 2023, while white corn in NCR markets increased to P92.7 per kilo, from P88.6 in January. With food costs consuming 40.9 percent of household expenses, many families are struggling financially.
Natural disasters like typhoons worsened the food crisis, causing P8 billion in agricultural damage from July to September 2024 alone, disrupting supply chains. Rising costs and reduced food availability have left millions of Filipino families struggling with hunger, underscoring the need for urgent action.
Recommendations. Addressing the worsening hunger crisis requires a combination of strategies.
Short-term
Food assistance programs, in collaboration with the private sector, are essential in addressing hunger, particularly in regions with the highest rates, such as Visayas (26 percent) and Mindanao (30.7 percent). Initiatives like emergency food banks, direct cash transfers, and community-based feeding programs can provide immediate relief to those most in need.
One example is Kain Tayo Pilipinas, a collaborative effort by business and nongovernment leaders to combat food insecurity and malnutrition. Lessons can also be drawn from Thailand’s successful initiatives, such as expanding food banks and redistributing surplus food from markets and manufacturer warehouses to vulnerable communities.
Reinforce feeding program initiatives to ensure that children receive at least one nutritious meal a day, targeting schools in high-poverty areas.
The Inter-agency Committee on Inflation and Market Outlook should continue to be proactive in monitoring trends in the prices of food commodities, and in fast-tracking the implementation of targeted solutions. These include improving food distribution networks, addressing supply chain inefficiencies, and stabilizing prices through import adjustments or stockpiling essential commodities.
Medium- to long-term
Strengthen supply chain by investing in efficient logistics, transportation, and storage to reduce costs, minimize waste, and ensure stable food supply. By improving these areas, food can be delivered more quickly and at a lower cost, reducing waste and shortages. Fostering private sector partnerships in the supply chain can bring in much-needed innovation, investment, and resilience in the food system.
The Department of Agriculture should focus on developing farming methods that are resilient to changing weather patterns and extreme climate events. Disaster-resilient infrastructure like farm-to-market roads, irrigation, and flood controls can protect agriculture, ensure stable food production, and enhance food security. A proper implementation and rigorous monitoring of the quality of these infrastructures ensures that they are capable of withstanding extreme weather events and other challenges.
Amend the warehouse receipts law to allow farmers to store their crops and sell them when market prices are higher, helping them maximize profits.
Pass the livestock development bill that seeks to abolish quantitative restrictions on corn which makes up 60 percent to 80 percent of the cost of meat. This would strengthen the livestock, poultry, and corn industries, ensuring greater food availability and affordability. Through this, the government can improve domestic food production and reduce dependency on imports.
Conclusions. While inflation may have decreased, the persistent issue of hunger in the Philippines underscores the urgent need for the government to address both inflation and the deeper challenges of poverty and food insecurity.
The country is committed to achieving Sustainable Development Goal 2 by 2030, aiming to end hunger and ensure year-round access to safe, nutritious, and sufficient food for all, especially the poor, vulnerable, and infants. Achieving this goal requires maintaining a manageable food inflation rate of 2-4 percent. As emphasized by Mahar Mangahas, the fight against hunger calls for a holistic approach, with targeted policies, social protection, and agricultural reforms that ensure the benefits of lower inflation reach the most vulnerable.
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Gary B. Teves served as finance secretary under the Arroyo administration.
