RG Cruz, ABS-CBN News

MANILA (UPDATED) — A deepening conflict in the Middle East could slash Philippine rice production by up to half if the government fails to intervene, officials warned Wednesday, as soaring fuel prices impact the country’s food security.

During a Senate briefing, Department of Agriculture (DA) Undersecretary Asis Perez cautioned that rising energy costs are threatening the upcoming planting season. Perez said that their “best case scenario” is a 20 percent reduction in production.

“That’s the best-case scenario. It can even go up to fifty percent decline in productivity because you see, ‘pag wala hong fertilizer, walang magagawa yung farmer.”

Perez warned that the “cost of inaction” for rice, corn, and fisheries could reach P75 billion.

He estimated that the government must mobilize P37 billion in subsidies over three months to stabilize the sectors.

Impact on logistics

The spike in fuel prices has affected domestic supply chains. Danilo Fausto, president of the Philippine Chamber of Agriculture and Food, Inc., said transport costs have become so prohibitive that produce is rotting in the fields while urban prices spike.

“Dapat yung mga truckers natin i-biyahe yung mga gulay. Wala nang bumibili ng gulay sa Trinidad. Hindi na naibababa dito. Tatlong piso na lang ang repolyo doon,” Fausto said, noting that cabbage prices in some regions have plummeted to just P3 a kilo as truckers stop deliveries.

The fisheries sector is facing a similar threat, with fuel now accounting for 80 percent of operating expenses.

“Nababawasan na at patuloy pang mababawasan ang mga bangka at barkong pumapalaot. For many, it is not economically viable anymore,” said Kenrick Teng, president of the SFFAII fishing federation.

Industrial Toll

The crisis has already forced two of the country’s seven major tuna canneries to suspend operations. Francisco Buenamino of the Tuna Manufacturers Association of the Philippines reported that daily output has dropped from 830 metric tons to 580.

“Almost forty percent [reduction],” Buenamino said.

DA officials said they are looking to reallocate research and infrastructure funds to provide emergency relief. However, Perez admitted that reaching the country’s 11 million farmers and fishers remains a logistical challenge, noting “the distribution process is yet to be perfected.”

Fuel prices have more than doubled since the United States and Israel attacked Iran at the end of February.

Slow aid to agri sector

Senators also scored the DA for being slow to fund assistance programs for the country’s beleaguered agricultural sector.

DA Undersecretary Nora Oliveros said the agency is eyeing releasing P30 billion in unused agency funds, which it would need the authority to realign.

Sen. Loren Legarda noted there are unused funds in the agency so the DA cannot say it has no money for fuel subsidies to farmers and fisherfolk.

“Because imagine, nagugutom ang tao. Ang daming food producers. Grabe ang pangangailangan ng ating mga magsasaka at mangingisda.”

She said earlier in the hearing that DA can also tap unused funds for farm-to-market roads.

“Yung proseso ho kasi yung matagal,” she said, adding the department needs proper documentation to realign funds.

Sen. Francis Pangilinan, chair of the Senate Committee on Agriculture , Food and Agrarian Reform, said the Senate will reach out to the Department of Budget and Management to help facilitate fund release.

DA set to release around P10-B aid to farmers, fishers in April

“No, I understand may proseso pero may crisis din eh,” Pangilinan said.

Published Date: April 8, 2026