Category: Financial Inclusion

The Rice Price Cap in the Philippines: Pros, Cons, and Long-Term Implications

In the wake of soaring rice prices, the Philippines has found itself in the midst of a contentious debate over the imposition of a rice price ceiling. As the staple food of the nation, rice plays an integral role in the daily lives of millions, making its affordability and accessibility crucial.

President Bongbong Marcos, wearing dual hats as the President and Concurrent Agriculture Secretary, implemented a price cap on this essential commodity, setting the stage for a series of events that have highlighted economic disparities, government intervention mechanisms, and the intricacies of market dynamics.

With Executive Order No. 39, the government set price ceilings for both regular milled rice and well-milled rice. While this move was intended to counteract alleged illegal activities like hoarding and to mitigate external global pressures, it has elicited various responses from different sectors.

Finance officials have resigned, economists have voiced concerns over potential shortages, and retailers grapple with the economic realities of the decision. As the country navigates this complex scenario, the repercussions of this policy extend beyond just the rice fields and markets, influencing broader conversations about governance, economics, and the welfare of the Filipino populace.

Price Cap in Economics: A Primer

A price cap, as defined in economic terms, refers to the maximum price set by a governing authority on a specific good or service to ensure that it remains affordable and accessible to the general population. It is an interventionist measure typically instituted in situations where market dynamics are perceived to fail, either due to external pressures or alleged illicit activities.

In the context of the Philippines’ recent rice crisis, President Bongbong Marcos introduced a price cap to counteract two primary concerns:

  • Alleged illegal price manipulation attributed to hoarding by traders and suspected collusion among industry cartels.
  • External global pressures beyond the Philippines’ control, such as the Russia-Ukraine conflict, India’s ban on rice exportation, and fluctuations in global oil prices.

By imposing a price ceiling on rice, the government aimed to stabilize the commodity’s price in the face of these challenges, ensuring that Filipinos could afford this staple food item.

Price Cap and the Filipino Consumer

The introduction of the rice price cap in the Philippines came as a direct response to the mounting concerns over rising prices and allegations of illegal price manipulation. This move was primarily aimed at favoring the Filipino consumer. However, like any economic measure, it presents both advantages and unintended challenges.

The most immediate positive outcome is making essential goods like rice more affordable. Given that rice is a foundational food for Filipinos, its affordability directly influences the well-being of the majority. By mandating a price cap, the government attempts to ensure that even when faced with market fluctuations, the cost of rice remains accessible to the typical Filipino consumer. Moreover, the price cap serves as a protective shield for consumers against price gouging and speculative behaviors. The decision to implement this measure was partially influenced by concerns about illicit price manipulations, including hoarding and collusion amongst industry magnates. With a cap in place, the objective is to maintain price stability, ensuring fairness for all consumers.

However, this intervention isn’t without its potential pitfalls. One of the most cited concerns is the risk of a shortage if the set price falls below the market equilibrium. When price ceilings are artificially lower than what the market would naturally dictate, it can cause a surge in demand while simultaneously diminishing supply. An economist has voiced concerns suggesting that the price cap’s sustained enforcement might lead us directly into these shortages. This perspective aligns with the insights of Finance Undersecretary Shelo Magno, who emphasized the law of supply. According to this economic principle, as the price of a commodity drops, the quantity supplied might also see a decline.

Furthermore, there’s the looming risk tied to product quality. Given the price constraints, retailers, especially those who procured rice at steeper prices, might face losses. This economic pinch could then drive suppliers and retailers to find shortcuts to uphold their profit margins. Such shortcuts could detrimentally impact the rice’s quality. In trying to maintain profitability, some retailers might prioritize cheaper rice variants or opt for blending different grades of rice.

While the rice price cap is rooted in the noble intention of shielding the Filipino consumer, its extensive repercussions continue to be a point of debate among economists, retailers, and government bodies. The true challenge is striking a balance—ensuring immediate relief for consumers without compromising the long-term stability of the market and the quality of goods.

Impacts of the Price Cap on Rice Farmers

Rice farmers, as the primary producers of this staple, bear the brunt of any market fluctuations and policy shifts. The recent institution of a price cap has raised questions about its implications for these farmers, who are often at the mercy of volatile market dynamics. How does this price regulation support or challenge their livelihoods? This section seeks to provide insights into the impact of the price cap on the farmers, capturing both the potential opportunities and the inherent risks.

On the brighter side, the price cap provides rice farmers with a degree of financial predictability. They can be somewhat comforted by the fact that there’s a guaranteed floor price for their harvest. This assurance protects them against the potential pitfalls of drastically plummeting market prices. Furthermore, if consumers find the capped price appealing and affordable, it could generate increased demand. Such a surge in demand would translate to higher sales volumes for farmers, thereby amplifying their market presence and revenue.

However, every silver lining has a cloud, and in this context, the potential challenges farmers face under the price cap are manifold. Experts, including the likes of Punong Bayan, point out a significant concern: the price cap might not necessarily align with the escalating production costs. If these costs outpace the fixed selling price, farmers could grapple with financial losses. This discrepancy between production costs and selling price is especially concerning in scenarios where external factors, such as climatic changes or global market shifts, hike up production expenses.

Moreover, the very essence of a price cap might inadvertently stifle innovation among farmers. When there’s a ceiling on potential revenue, the incentive for farmers to embrace advanced farming techniques or to channel investments into productivity-boosting mechanisms diminishes. After all, if the return on investment appears bleak in the light of the price cap, why would they venture into uncharted territories of innovation?

The intricate balance of ensuring affordability for consumers while maintaining profitability for producers is a challenging act. For rice farmers, the price cap brings both opportunities and uncertainties. As the Philippine government navigates this complex issue, continuous engagement with farmers and understanding their concerns will be pivotal to ensuring that policy decisions genuinely benefit the broader Filipino community.

Price Cap from the Perspective of Rice Traders

Rice traders operating at the heart of the rice distribution system, play a crucial role in ensuring that this staple reaches Filipino tables. As they grapple with the new pricing regulations, it becomes essential to understand the potential benefits and challenges they face.

One clear advantage is the predictability in pricing. With a price cap in place, rice traders can anticipate the maximum price at which rice can be sold. This can help them strategize their buying, storage, and selling decisions. As President Bongbong Marcos mentioned, this price cap is a temporary measure, which may offer some traders a sense of solace knowing it’s not a permanent market condition.

Additionally, there’s a possible surge in the volume of sales. If consumers perceive the capped price as fair and affordable, they may be more inclined to buy rice. This could potentially lead to increased sales volumes, compensating, to some extent, for the reduced price per kilo.

However, on the flip side, the price cap brings with it certain undeniable challenges. As highlighted by the news from ANC, some rice retailers experienced losses immediately after the implementation of the price cap. One retailer noted a loss of P9,000 on the first day, and the Grain Retailers Confederation indicated that an average retailer selling 20 sacks of rice per day might lose up to 49,000 pesos of potential profit per week.

If the capped price is too close to or even below the cost of acquiring and selling rice, traders could face significant challenges in covering their operational costs. This is especially concerning for retailers who had bought rice at a higher price before the cap and now have to sell at a lower price. Such concerns were echoed by the president when he acknowledged that some retailers bought rice at a higher price and would now be obligated to sell it at a reduced price due to the cap.

The economic perspective provided suggests that if the price cap is set below the equilibrium, it can lead to shortages. This imbalance where demand exceeds supply could strain traders, potentially causing them to run out of stock prematurely. Economists like Punongbayan have cautioned about the implications of such price ceilings, emphasizing the potential disincentive for producers to sell rice, which can directly impact the traders who rely on these producers.

The Rice Tariffication Law and its Implications

The Philippine agricultural landscape underwent a significant transformation with the introduction of the Rice Tariffication Law. Aimed at liberalizing the rice industry, this law was intended to meet the country’s rice consumption needs while attempting to make the sector more competitive. However, the resulting changes sparked debates over its implications, especially concerning local rice producers and market dynamics.

The Rice Tariffication Law replaced quantitative restrictions on rice imports with tariffs, thus allowing private sectors to import rice. It aimed to stabilize prices and supply, benefiting Filipino consumers through potentially lower rice prices.

By lifting the quantitative restrictions, the Philippines saw an influx of rice imports. The newfound ease of importing rice meant that local demand could be quickly met by rice from international sources, often at cheaper prices.

The influx of cheaper imported rice posed challenges for local rice producers, as they struggled to compete with these prices. The absence of a protective barrier resulted in local farmers facing the pressure of reduced prices for their produce.

Given the backdrop of the Rice Tariffication Law, the challenges faced by local producers and the price volatility in the market were exacerbated. Factors such as the Russia-Ukraine conflict, India’s rice export ban, and fluctuating global oil prices further added to the market instability. This environment, coupled with alleged illegal activities like hoarding, created a situation that seemingly necessitated government intervention, leading to the rice price cap.

The Rice Tariffication Law, while designed with the intent to provide Filipinos with affordable rice, has demonstrated the intricacies and unforeseen challenges of market liberalization. As the Philippines grapples with ensuring food security, the rice price cap’s institution stands as a testament to the delicate interplay between policy decisions, market dynamics, and the livelihoods of thousands of rice farmers.

PhP20 Price of Rice: Political Promise or Practical Solution?

The price of rice has always held significant importance in the Filipino household, with any fluctuation having widespread ramifications on both the economy and daily living. The promise of bringing down the rice price to PhP20 per kilo was a political pledge that captured much attention. However, with the changing dynamics in the rice market and the various challenges, achieving this mark becomes a topic of debate.

The PhP20 price point is not a new phenomenon. In previous years, there have been instances where affordable rice prices have been achieved, with Rep. Rhea Vergara recalling a time when the cost was as low as PhP27 per kilo. This has set a precedent for the public, increasing the expectation for the government to regulate and maintain affordable rice prices.

According to Congresswoman Rhea Vergara, while there were initial meetings suggesting that the PhP20 per kilo price wasn’t attainable, she believes that under certain conditions, it might be possible. Vergara opines, “If the DA can provide the inputs, which is the most expensive part of farming, if we give our farmers the right seeds, support them 100 percent with fertilizer…then, yes, 20 pesos is achievable.” However, she also expressed doubts about its sustainability, suggesting a more realistic price point to be between PhP38 to PhP40 per kilo.

While a PhP20 price point would be welcomed by consumers, its ramifications go beyond just affordability. Such a price regulation can pose challenges for traders and retailers who would need to adjust their profit margins. Moreover, it places pressure on the government and associated bodies like the NFA to intervene, which can lead to significant economic decisions, such as providing subsidies. On the political front, while fulfilling the PhP20 promise could boost the government’s popularity, failing to do so might lead to public discontent.

Promising a PhP20 per kilo price for rice is a compelling political pledge, reflecting the government’s commitment to ensuring affordable living for its citizens. However, as elucidated by Rep. Rhea Vergara and the ongoing developments, achieving and maintaining this price point requires strategic interventions, a robust agricultural support system, and a consideration of its broader implications. Whether a political promise or a practical solution, it is a testament to the intricate relationship between economics, politics, and the Filipino way of life.

Moving Forward: Recommendations and Solutions

With the complex interplay of economics, politics, and agriculture at the forefront, ensuring affordable rice prices and a sustainable rice industry in the Philippines requires strategic solutions. Reflecting on the insights shared, particularly by Congresswoman Rhea Vergara, this section presents several recommendations to address the challenges currently faced by the rice sector.

Direct support to farmers can play a pivotal role in ensuring the rice industry’s viability. Congresswoman Vergara suggests implementing measures like a minimum support price, which considers production costs and other associated expenses. This ensures that farmers receive fair compensation for their produce. In addition, introducing subsidies or grants can also provide the much-needed financial buffer, protecting farmers from volatile market prices.

Investing in research can pave the way for improved yields, cost-effective farming practices, and resilient crops. By focusing on R&D, the Philippines can develop high-yielding varieties, better farming techniques, and innovative solutions to tackle challenges like pests and changing climatic conditions. As Vergara highlights the need for government support, providing farmers with the right seeds and comprehensive fertilizer assistance can significantly reduce production costs.

Given the ongoing challenges, there’s a clarion call to reassess the rice tariffication law. Vergara strongly believes in amending the law, suggesting reintroducing NFA’s role in stabilizing the rice market during emergencies. By allowing NFA to flood the market with affordable rice, it can counteract the manipulations by potential cartels and unscrupulous traders.

Promoting local production is crucial for the country’s food security and economic stability. By offering incentives, the government can motivate farmers to boost production and reduce dependency on imports. Additionally, linking farmers directly to end-users, as suggested by the Kadiwa initiative mentioned by Vergara, can eliminate middlemen, ensuring both farmers and consumers get a fair deal.

Addressing the rice industry’s challenges requires a holistic approach, encompassing direct farmer support, research investments, legislative amendments, and promoting local production. As the country navigates the intricate dynamics of rice production, prices, and market forces, these recommendations serve as potential pathways to ensure that both the producer and consumer benefit, ultimately leading to a self-sufficient and robust rice industry in the Philippines.

Navigating the Rice Terrain: Challenges and Opportunities

The intricate landscape of rice pricing and production in the Philippines has seen a series of ups and downs. The introduction of the rice price cap, alongside the broader discussions on rice tariffication and market dynamics, has only added to the complexities. This section will summarize the overarching challenges and opportunities stemming from these measures.

The price ceiling was introduced as a measure to control soaring rice prices. It brought about a guarantee for producers and potential increased demand from consumers at the capped price. However, as Congresswoman Rhea Vergara pointed out, while it addressed a price hike, it was merely “half the solution.” Challenges have emerged, such as the potential for costs to surpass production expenses and reduced incentives for innovation. Nevertheless, the ceiling also presented an opportunity: a clear signal against unbridled profiteering and a testament to the government’s commitment to consumer welfare.

The rice situation in the Philippines is not isolated to prices alone. It’s intertwined with global events, as seen with the impacts of the Russian-Ukraine war and local typhoons, the changing roles of agencies like NFA, and the evolving dynamics between farmers, traders, and consumers. As Vergara emphasized, addressing just one aspect will not yield the desired stability. Instead, a comprehensive approach is essential — one that takes into account the welfare of farmers, ensures fair pricing for consumers, promotes research and development, and creates avenues for direct links between producers and consumers.

Rice, as a staple in the Philippines, sits at the nexus of nutrition, economics, politics, and culture. The discussions on price caps, tariffication laws, and farmer welfare are emblematic of the challenges of ensuring food security in an increasingly complex global landscape. As the nation moves forward, the lessons from these episodes serve as crucial guideposts. A cohesive strategy that addresses each facet of the rice industry, backed by collaborative efforts from all stakeholders, will be instrumental in charting a stable and prosperous path for the Philippines’ rice sector.

REFERENCES

Articles:

Galang, B. (2023, September 1). Marcos sets price cap for rice. CNN Philippines. https://www.cnnphilippines.com/news/2023/9/1/marcos-sets-price-cap-for-rice.html

Gavilan, J. (2023, September 3). Marcos’ economic team backs rice price cap, group claims it’s harmful. Rappler. https://www.rappler.com/business/neda-statement-marcos-price-cap-rice-groups-react-september-2023/

Rivera, D. (2023, September 2). Rice price cap to affect farmers, consumers. Philippine Star. https://www.philstar.com/headlines/2023/09/02/2293214/rice-price-cap-affect-farmers-consumers

Suelto, D., & Cariaso, B. (2023, September 8). Rice traders bemoan daily losses price cap. Philstar. https://www.philstar.com/headlines/2023/09/08/2294621/rice-traders-bemoan-daily-losses-price-cap-

Unknown. (2023, September 5). Sinag on rice price cap. CNN Philippines. https://www.cnnphilippines.com/news/2023/9/5/sinag-on-rice-price-cap.html

Videos:

ANC. (2023, September 9). Analyst Rice price cap product of poor planning by PH gov’t. YouTube. https://youtu.be/mlkjH-eeNi0?si=MqNiGJWH2i9qeJPJ

ANC. (2023, September 7). PH lawmaker Ria Vergara on rice price cap, rice situation in PH. YouTube. https://youtu.be/W3UGXhgS87Q?si=POhv9xs4kauJvARO

ANC. (2023, September 8). DOF official allegedly asked to resign for not supporting price cap order. YouTube. https://youtu.be/3zQZ-y1d_TY?si=C9bY98JWOnW2Hsdh

Inquirer. (2023, September 5). More rice due by mid-September, price cap temporary — Bongbong Marcos. YouTube. https://youtu.be/mn26x7Vl9W4?si=D59Aj04_LjueFFdo

Inquirer. (2023, September 9). Bongbong Marcos orders price caps for rice at P41 to P45 per kilo. YouTube. https://youtu.be/_FaoPTr4YwU?si=JSNlcYMLLvNWq-VK

SEDPI, Tumutugon sa Kalamidad: Relief Operations at Pagsusulong ng Resilient Housing sa Davao del Norte at Agusan del Sur

Nitong ika-16 ng Marso, 2023, nagsagawa ang Social Enterprise Development Partnerships Inc. (SEDPI) ng relief operations sa mga lugar na apektado ng Low Pressure Area sa Carmen, Davao del Norte at Prosperidad, Agusan del Sur. Ang organisasyon ay tumugon sa mga pangangailangan ng mga tao sa mga apektadong lugar sa pamamagitan ng SEDPI KaTambayayong na isang uri ng damayan system.

Batay sa datos na nakalap ng SEDPI, apektado ang 193 sa 1,097 members sa Carmen, Davao del Norte, habang sa Prosperidad, Agusan del Sur ay 38 sa 1,251 members ang apektado ng Low Pressure Area. Ayon sa mga members sa lugar, umabot ang tubig hanggang bewang at leeg. Karamihan sa mga residente ay pansamantalang tumira sa mga kalsada at sa municipal gymnasium bilang evacuation center.

Nagbibigay ang SEDPI KaTambayayong ng life, sickness, calamity, fire, funeral, at accident assistance benefits. Kasama sa calamity benefit ang relief goods at PhP250 cash. Ang mga benefits na ito ay karaniwang naibibigat sa mga members sa loob lamang ng isa o dalawang araw, na labis na mas mabilis kumpara sa 3 hanggang 6 na buwan na claims processing ng karaniwang insurance company. Ang mga benepisyong ito ay eksklusibo lamang sa SEDPI members at maaring nagbabago depende sa nakolektang pondo. Noong 2021 at 2022, umabot sa PhP4.6M at 5.9M ang kabuuang naipamigay na benepisyo sa mga SEDPI KaTambayayong members.

Bagaman umabot na ang relief operations sa mga lugar na ito, hindi pa rin sapat ang mga tulong na ipinagkakaloob upang tugunan ang lahat ng pangangailangan ng mga apektadong residente. Kailangan ng mga solusyong tumutugon sa pinagmumulan mismo ng problema. Una na rito ang paglipat sa mga residente mula sa mga hazard prone areas papunta sa mga safe zones. Pangalawa, ang pagbibigay ng abot-kayang pabahay sa mga residente. At pangatlo, ang pagkakaroon ng disenyo ng bahay na angkop sa lugar at sa kalamidad.

Upang matulungan ang mga miyembro nito, ang SEDPI ay kasalukuyang nagsasagawa ng socialized housing, SEDPI Building Adequate Livable Affordable and Inclusive (BALAI) communities, na naglalayong magbigay ng maayos at disaster resilient housing sa mga low-income members. Ang organisasyon ay nakikipagtulungan din sa pamahalaan, social investors, at civic organizations upang magbigay ng abot-kayang pabahay sa mga nangangailangan.

Fragile recovery persists among nanoenterprises post pandemic

Update 18 of SEDPI’s Rapid Community Assessment (RCA)
October – December 2022

As the world slowly recovers from the pandemic, the economic landscape remains uncertain, especially for nanoenterprises. A recent survey conducted by our organization, Social Enterprise Development Partnerships, Inc. (SEDPI), reveals that 99% of nanoenterprises have resumed operations as of December 2022, indicating a promising recovery for this crucial sector of the economy.

Despite the positive news, recovery remains fragile with 52% of nanoenterprises surveyed experiencing weak demand. Access to supplies has been a continuing concern with 27% of nanoenterprises still reporting difficulties in obtaining the necessary supplies.

SEDPI’s latest self-rated poverty survey reveals that the impact of the pandemic on poverty levels remains significant. For 2022, 54% of respondents rated themselves at the poverty line, a decrease from 81% in 2021. The number of respondents who rated themselves as poor is steady at 3% and 4%. On a positive note, the number of respondents who no longer consider themselves poor nearly tripled from 16% in 2021 to 41% in 2022.

According to the Social Weather Stations, which conducts the survey at the national level, self-rated poverty was recorded at 48% in 2021 and 51% in 2022. The considerably elevated self-rated poverty at the national level suggest that a greater number of nanoenterprises that SEDPI serves experienced better economic conditions.

Over the past three years, SEDPI has conducted an impact assessment to evaluate its support for nanoenterprises through self-evaluation or perception surveys. The results are as follows:

 Dec 19Dec 21Dec 22
Help in growing business82%100%98%
Education of children70%85%98%
Improve housing67%99%98%
Improve nutrition81%100%100%
Increase income82%100%97%

The perception survey suggests that SEDPI’s assistance plays a crucial role in alleviating hardships among nanoenterprises in areas such as business growth, education, housing, nutrition, and income. This may be the reason why the highly significantly lower self-rated poverty data among SEDPI nanoenterprises compared to the national survey. Additional interventions and strategies in the areas of disaster risk reduction, housing and health are necessary to enable a more comprehensive and lasting escape from poverty.

The majority of respondents are nanoenterprises (45%), owned and operated by women, with an average age of 43 and 73% being married. Of these nanoenterprises, 40% rely on other sources of income, such as employment, while 12% are unpaid family members, and 2% are unemployed.

SEDPI is a microfinance institution dedicated to providing ethical financing to nanoenterprises in Agusan del Sur, Davao de Oro, Davao del Norte, and Surigao del Sur. Their efforts have led to significant improvements in various aspects of the beneficiaries’ lives, such as business growth, education, housing, nutrition, and income.

Resilience and Recovery: A Chronological Analysis of Nanoenterprises Amidst the COVID-19 Pandemic

The COVID-19 pandemic has had a profound impact on nanoenterprises (NEs) worldwide, with various stages of recovery, demand trends, and access to supplies experienced throughout the course of the pandemic. This article examines the chronological analysis of NEs’ recovery, demand trends, and access to supplies from March 2020 to December 2022, based on the Rapid Community Assessment conducted by the Social Enterprise Development Partnerships, Inc. (SEDPI). By analyzing these trends, we can better understand the challenges faced by NEs and the factors contributing to their resilience and adaptability.

March 2020: Initial Pandemic Impact, Demand Shift, and Supply Chain Disruptions

At the beginning of the COVID-19 pandemic in March 2020, 34% of NEs stopped their operations due to lockdowns and social distancing measures, while 66% resumed operations. Demand was characterized by 8% of NEs experiencing no buyers, 78% experiencing weak demand, and 13% witnessing strong demand, as consumers’ priorities shifted towards essential goods and services. Supply chain disruptions affected NEs, with 36% facing difficult access to supplies and 64% having access to necessary resources.

June 2020: Early Recovery, Persistent Weak Demand, and Supply Chain Struggles

In June 2020, the recovery of NEs continued, with 91% resuming operations and only 9% remaining closed. However, demand remained weak, with 7% of NEs having no buyers, 72% facing weak demand, and 21% enjoying strong demand. Access to supplies was a significant challenge, as 81% of NEs had adequate access while 19% faced difficulties due to ongoing supply chain disruptions caused by the pandemic.

December 2020: Relief, Recovery, Improved Demand, and Better Supply Access Amid Typhoon Vicky’s Impact

By December 2020, government relief packages and easing of lockdown restrictions helped many NEs recover, with 3% remaining closed and 96% resuming operations. Demand improved slightly, with 4% of NEs having no buyers, 75% facing weak demand, and 21% enjoying strong demand. The holiday season likely contributed to increased consumer spending. Access to supplies significantly improved, with 90% of NEs having access and only 10% experiencing difficulties.

However, during this period, Typhoon Vicky hit the region, causing agricultural production losses in rice, corn, high-value crops, and livestock. The typhoon also triggered floods and landslides, resulting in damaged or destroyed homes in coastal areas. The natural disaster added challenges to the recovery process of nanoenterprises, particularly those in the affected areas and those dependent on agricultural production. Although the overall trend in December 2020 indicated progress in recovery, improved demand, and better access to supplies for nanoenterprises, the recovery would have been even more significant if not for the added challenges brought about by Typhoon Vicky.

March 2021: Steady Recovery, Increased Strong Demand, and Improved Supply Access

By March 2021, the situation for NEs had improved, with 97% resuming operations and only 3% remaining closed. Demand patterns shifted, with only 1% of NEs having no buyers, 52% experiencing weak demand, and 47% enjoying strong demand, likely due to the easing of restrictions and ongoing vaccination campaigns. Access to supplies improved, with 73% of NEs having adequate access and 27% still facing difficulties.

June 2021: Full Recovery, Diverse Demand, and Enhanced Access to Supplies

By June 2021, 100% of NEs resumed operations, marking a full recovery in this period. Demand varied, with 2% of NEs having no buyers, 64% facing weak demand, and 34% experiencing strong demand. Access to supplies continued to improve, with 82% of NEs having adequate access and only 18% facing difficulties.


September 2021: Delta Variant Surge, Granular Lockdowns, and Nanoenterprise Adaptation


In September 2021, the Delta variant surged in the Philippines, prompting the government to implement granular lockdowns as opposed to the general lockdowns previously imposed. This new approach aimed to prevent the wholesale disruption of jobs and livelihoods while still addressing the public health crisis. Despite the surge and the implementation of granular lockdowns, 96% of NEs continued to operate, while only 4% temporarily stopped their operations.

Demand patterns during this period fluctuated, with 12% of NEs having no buyers, 66% experiencing weak demand, and 22% witnessing strong demand. As the granular lockdowns targeted specific areas with high infection rates, many nanoenterprises had to quickly adapt to the changing circumstances and market conditions. Access to supplies remained relatively stable, with 77% of NEs having adequate access and 23% facing difficulties.

The September 2021 period demonstrated the resilience of nanoenterprises in the face of new challenges posed by the Delta variant and the government’s shift in lockdown strategy. Despite the hurdles, the sector continued to adapt and maintain its operations, contributing to the nation’s economic recovery.

December 2021: Continued Recovery, Increased Strong Demand, and Moderate Access to Supplies

By December 2021, widespread vaccination campaigns allowed for more relaxed social distancing measures and a resurgence in consumer demand. The percentage of stopped NEs remained at 3%, while 97% resumed operations. Demand for NE products and services further improved, with 9% of NEs having no buyers, 65% facing weak demand, and 26% experiencing strong demand. Access to supplies became more moderate, with 77% of NEs having access and 23% facing difficulties.

March 2022: Steady Operations, Persistent Weak Demand, and Improved Access to Supplies

By March 2022, the status of operations remained consistent, with 4% of NEs stopped and 96% resumed operations. Demand continued to lean towards weakness, as 8% of NEs had no buyers, 67% faced weak demand, and 26% experienced strong demand. However, access to supplies significantly improved, with 85% of NEs having access and only 15% facing difficulties.

September 2022: Temporary Setbacks, Fluctuating Demand, and Slightly Reduced Access to Supplies

In September 2022, the temporary increase in stopped NEs to 4% could be attributed to localized outbreaks and new COVID-19 variants. Despite these setbacks, 96% of NEs remained operational. However, demand patterns fluctuated, with 15% of NEs having no buyers, 36% experiencing weak demand, and 49% witnessing strong demand. Access to supplies slightly declined, with 73% of NEs having access and 27% facing difficulties.

December 2022: High Inflation Impact on Nanoenterprises, Demand Patterns, and Purchasing Power

In December 2022, the Philippines’ headline inflation increased to 8.1 percent, as reported by the Philippine Statistics Authority (PSA). The high inflation rate led to a decrease in purchasing power, resulting in reduced consumer spending, particularly among low-income households. Despite the inflationary pressures, 99% of NEs remained operational, while only 1% stopped their operations, showcasing the resilience of the sector. 

Compared to September 2022, when 36% of NEs faced weak demand, the percentage increased to 52% in December 2022, illustrating the heightened challenges for these enterprises due to reduced consumer spending amid high inflation. The decreased purchasing power of consumers, especially in low-income households, contributed to the fluctuations in demand patterns for nanoenterprises.

Access to supplies remained relatively stable, with 73% of NEs having access to necessary resources and 27% facing difficulties in acquiring them. The December 2022 period highlighted the challenges faced by nanoenterprises due to high inflation and its impact on consumer spending, while also demonstrating the adaptability of the sector in sustaining operations amid economic challenges.

Conclusion:

Throughout the COVID-19 pandemic and various external challenges, such as natural disasters and high inflation, nanoenterprises have consistently demonstrated resilience and adaptability in maintaining operations, responding to fluctuating demand, and navigating supply chain disruptions. As of December 2022, the sector has reached a near full recovery, with stabilizing demand patterns and steady access to supplies. The findings from SEDPI’s Rapid Community Assessment underscore the importance of continued support and empowerment for nanoenterprises, as they play a crucial role in local economies and communities. As the world moves forward from the pandemic’s impact, fostering collaboration between government, business, and community organizations will remain vital in ensuring the sustained success and growth of nanoenterprises in the face of ongoing and future challenges.

Respondents:

In December 2022, the Rapid Community Assessment (RCA) conducted by SEDPI garnered responses from 1,398 respondents across the provinces of Agusan del Sur, Davao de Oro, Davao del Norte, and Surigao del Sur. The profile of respondents in this edition of the survey was similar to that of previous editions. The majority of respondents were female (86%), with an average age of 43, and 73% of them were married. When it came to sources of income, 40% were employed, 45% were nanoenterprise owners, 12% were unpaid family members contributing to the family business, and 2% were unemployed.

Nanoenterprise status

 Mar’20Jun ’20Dec ’20Mar’21Jun ’21Sep ’21Dec 21Mar ’22Sep’ 22Dec 22
Stopped34%9%3%3%0%4%3%4%4%1%
Resumed66%91%96%97%100%96%97%96%96%99%

Market demand for NE products and services

 Mar’20Jun ’20Dec ’20Mar’21Jun ’21Sep ’21Dec 21Mar ’22Sep’ 22Dec 22
No buyers8%7%4%1%2%12%9%8%15%6%
Weak demand78%72%75%52%64%66%65%67%36%52%
Strong demand13%21%21%47%34%22%26%26%49%42%

Access to supplies for NE livelihood operations

 Mar’20Jun ’20Dec ’20Mar’21Jun ’21Sep ’21Dec 21Mar ’22Sep’ 22Dec 22
With access64%81%90%73%82%77%77%85%73%73%
Challenge in access36%19%10%27%18%23%23%15%27%27%

1 out of 4 nanoenterprises adopted online selling in response to lockdowns

At least one out of four nanoenerprises are now either selling their products online, or are buying products to be sold in their local communities to cope with granular lockdowns imposed by local government units. Out of 7,675 respondents, 26% sold products and 29% bought supplies online, to augment their livelihood operations.

Nanoenterprise is a SEDPI-coined term that refers to unregistered livelihoods of self-employed individuals that have capitalization of less than PhP50,000 to operate. SEDPI estimates that the vast majority of entrepreneurial poor in the Philippines are nanoenterprises, numbering around 8 million.

Nano level risk diversification

More than half of the respondents or 52% also claimed that they added other kinds of livelihoods in response to the pandemic. Nanoenterprises refer to this as “diskarte” to be able to survive the negative economic impact of the pandemic. Diskarte is the ability to use creativity and resourcefulness to respond to challenges and adversities.

Nanoenterprises involved in the agricultural sector were better able to weather the pandemic compared to their non-agri counterparts. Eighty nine percent of the respondents said that those with farms were able to adjust and fair better.

Farming households were able to harvest produce for consumption. The surplus farm produce were then sold in local markets through ambulant vending and online selling. This resulted in reduced expenses for food and at the same time provided ample additional income

Status of nanoenterprises

A year after the Enhanced Community Quarantine (ECQ) imposed in the whole country, all

nanoenterprises reported that they already resumed operations. At the peak of the ECQ last year, 69% of them stopped operations which prompted the government to distribute cash assistance.

As of March 2021, four out of ten respondents said that they have fully recovered from the negative economic impact of the pandemic; while 55% said that it will take them up to 2 months more, before they get back to their pre-pandemic levels.

During the first quarter of the year most areas in the country were under Modified General Community Quarantine (MGCQ), the lowest quarantine level imposed by the Philippine government. These reinvigorated the local economy due to ease in the flow of goods and mobility of customers.

 

Social Enterprise Development Partnerships, Inc. (SEDPI)

SEDPI provides capital to nanoenterprises through joint ventures to approximately 10,000 low-income households in Agusan del Sur, Davao de Oro and Surigao del Sur. Its members also benefit from life insurance as well as medical and disaster relief assistance through damayan. SEDPI also partnered with SSS and Pag-IBIG to bring social safety net programs of the government closer to nanoenterprises in rural areas.

This research is part of a series of rapid community assessments that determines the economic impact of COVID-19 to nanoenterprises. SEDPI began the research last March 2020. This latest update was conducted on April 2021 to cover the first quarter of 2021.

The 7,695 respondents is not a representative sample of the entire Philippines. It is highly localized to SEDPI members. However, this is a good case study that reflects the situation of nanoenterprise and the local economy in the countryside. SEDPI believes that the nationwide picture is not far from its research results.

Summary of findings:

  • Out of 7,675 SEDPI nanoenterprise respondents 26% sold products and 29% bought supplies online to augment their livelihood operations
  • 100% are resumed livelihood operations a year after the hard lockdown
  • 52% added other kinds of livelihoods in response to the pandemic
  • 89% said that those with farms were able to adjust and fair better
  • 40% fully recovered from the negative impact of the pandemic
  • 55% said it will take them up to 2 months more before they get back to their pre-pandemic levels

Previous rapid community assessment updates. The titles are hyperlinked. Click on the titles to full read article online.

SEDPI at Opisina ni Senator Risa Hontiveros Nag-abot ng Tulong sa mga Nasalanta ng Bagyong Vicky

“Sagol nerbyos hadlok lagi kay basi manganaod kay paspas kaayo ang pag taas sa tubig og sulod kaayo.” 

“Magkahalong nerbyos at takot dahil baka maanod kasi mabilis ang pagtaas ng tubig at pumapasok talaga.”

Ito ang naramdaman ni Roxanne Amigo habang rumaragasa ang baha na dala ng bagyong Vicky.

Kasama sa binaha at na-landslide ang mga residente ng Agusan del Sur at Surigao del Sur, kung saan mayroong microfinance operations ang SEDPI Development Finance, Inc.

Mula sa 10,000 SEDPI members, 1,884 ang apektado sa mga bayan ng Trento, Santa Josefa, Barobo, at Rosario sa Agusan del Sur at Lingig at Bislig sa Surigao del Sur. Dalawa ang inanod ng baha ang bahay. Isa naman ang na-landslide. 

Agad nakapagbigay ng relief goods noong December 2020 ang SEDPI at ang Office ni Senator Risa Hontiveros sa nasalanta ng bagyong Vicky.

Hindi man madalas na mabagyo ang Mindanao, naging handa ang SEDPI sa pagtulong sa mga members dahil sa Social Welfare Protection Program (SWEPP) nito. 

SWEPP ay ang hybrid microinsurance program ng SEDPI na pinagsasama ang “damayan” o pagtutulungan ng kapwa; formal life insurance mula sa CLIMBS Life and General Insurance Cooperative; at social safety nets mula sa gobyerno na binibigay ng SSS at Pag-IBIG Fund. 

Maliban sa regular contributions sa SSS at Pag-IBIG, nagcocontribute ang mga members ng PhP360 every six months para ma-cover ng SWEPP. 

Ang bahagi ng kontribusyon ay linalaan para sa “damayan”. Ginagamit ang naiambag ng mga members para tulungan ang kamember nila sa panahon ng kamatayan, pagkakasakit, sunog, o kalamidad. 

Ito ang naging pondo para makabigay ng relief goods sa mga nabaha at dagdag na PhP5,000 sa tatlong na-wipe out ang bahay.

Bawat pack ng relief goods ay naglaman ng limang kilong bigas at ilang groceries na good for one week para sa pamilya na may limang miyembro.

“Naibsan ang pag-aalala ko dahil may makakain na kami kahit papano. Dumating ang aming pinapanalangin,” masayang nasabi ni Roxanne. 

Naging malaking tulong ang donasyon na 134 sakong bigas na galing sa Liwanag at Lingap Program ng opisina ni Senator Risa Hontiveros. 

Ang programang ito ay nagsimula noong bagyong Rolly bilang isang typhoon relief effort. Sinundan pa ito ng tulong sa mga apektado ng mga bagyong Ulysses at Vicky. 

Mensahe ni Senator Risa Hontiveros, “Tuloy-tuloy ang pagpapadala natin ng Liwanag at Lingap sa mga kababayan nating naapektuhan ng kalamidad at nawalan ng kabuhayan. Umaasa akong sa munting paraan ay makatulong ang relief operations na ito para matugunan ang immediate needs gaya ng pagkain.” 

Naging maganda ang pagtutulungan ng komunidad, SEDPI at ng opisina ni Senator Risa Hontiveros. Sa unang linggo matapos ang bagyo at baha ay nakatuon ang mga nasalanta sa pag-aayos sa kanilang mga bahay at gamit at hindi sa paghahanap ng kanilang makakain. 

Ani ng Vince Rapisura, Presidente ng SEDPI, “Systemic and institutionalized safety nets talaga ang kailangan natin. Kailangan po talaga ay hindi lang yung sarili natin yung nag-eeffort pero nandyan ang private sector, nandyan ang public sector, nandyan ang community.” 

 

 

 

 

 

 

SEDPI at Ambagan PH Tumulong sa mga Nasalanta ng Bagyong Vicky

Agad na nag-abot ng tulong ang SEDPI at Ambagan PH sa 1,884 na nasalanta ng bagyong Vicky sa Agusan del Sur at Surigao del Sur. 

Matapos ang tuloy-tuloy na ulan na dulot ng bagyong Vicky sa Mindanao nagdulot ito ng pagbaha at landslide. 

Kasama sa naapektuhan ay ang mga residente ng Agusan del Sur at Surigao del Sur, kung saan mayroong microfinance operations ang SEDPI Development Finance, Inc. 

Mula sa 10,000 SEDPI members, 1,884 ang apektado sa mga bayan ng Trento, Santa Josefa, Barobo, at Rosario sa Agusan del Sur at Lingig at Bislig sa Surigao del Sur. Dalawa ang inanod ng baha ang bahay. Isa naman ang na-landslide.

Bago pa mabagyo ang Mindanao, naging handa ang SEDPI sa pagtulong nito sa mga nasalanta dahil sa Social Welfare Protection Program (SWEPP). 

SWEPP ay ang hybrid microinsurance program ng SEDPI na pinagsasama ang “damayan” o pagtutulungan ng kapwa; formal life insurance mula sa CLIMBS Life and General Insurance cooperative; at social safety nets mula sa gobyerno na binibigay ng SSS at Pag-IBIG Fund. 

Maliban sa regular contributions sa SSS at Pag-IBIG, nagcocontribute ang mga members ng PhP360 every six months para ma-cover ng SWEPP. 

Ang bahagi ng kontribusyon ay linalaan para sa “damayan”. Ginagamit ang naiambag ng mga members para tulungan ang kamember nila sa panahon ng kamatayan, pagkakasakit, sunog, o kalamidad. 

Pondo mula sa SWEPP Damayan ang pinagkuhanan para sa relief goods sa mga nabaha at dagdag na PhP5,000 sa tatlong na-wipe out ang bahay.

Ani ng Vince Rapisura, Presidente ng SEDPI,“Ito ay isang patunay na ang mahihirap ay kaya nilang tulungan ang mga sarili nila kung merong maayos na sistema at hindi kinukurakot.” 

Nadagdagan ang pondo para sa relief operation nung nag-donate ang Ambagan PH sa SEDPI Foundation, Inc. ng PhP20,000.

Ang Ambagan PH ay isang network ng volunteers at initiatives na nabuo para tumugon sa mga krisis, tulad ng bagyong Vicky. Donasyon at crowdsourcing ang pangunahing pinagmumulan ng kanila resources. 

Sa karanasan nila mula ng October 2020 na-realize nila na, “Walang maliit o malaking ambag. Sa panahon ng krisis, lahat ng ambag ay dakila.”

Bawat pack ng relief goods na napamigay ng SEDPI at Ambagan PH ay naglaman ng limang kilong bigas at ilang groceries na good for one week para sa pamilya na may limang miyembro.

Pasalamat ng SEDPI member na si Dondon Ocsema, “Malaking tulong iyon para suportahan ang ilang araw na kakainin lalo na ilang araw akong hindi nakapamasada.”

Dahil meron na silang makakain para sa isang linggo mas nabigyang tuon ng mga nasalata, tulad ni Dondon, ang pag-aayos sa kanilang mga bahay at gamit. 

Isa itong full-circle experience para kay Angelica Reyes o Anj na SEDPI Senior Program Officer at Co-Founder at Spokesperson din ng Ambagan PH. 

Nagsimula ang 2020 nang mag-interview si Anj, kasama ang iba pang taga SEDPI, ng members sa Agusan del Sur at Surigao del Sur para malaman ang impact ng microfinance program. 

Anj Reyes kasama ang ilang SEDPI members nung February 2020

Nagtapos ang taon na pinagtagpo ni Anj ang SEDPI at ang sinimulan niyang grupo na Ambagan PH para tumulong sa mga taong minsan ay nakadaupang-palad niya.

“Malaki ang pasasalamat ko sa SEDPI dahil marami sa organizational at administrative skills ko ay natutunan ko mula sa pagiging program officer ng SEDPI. Higit sa lahat, lalong napatibay ng SEDPI ang advocacy ko na makatulong sa kapwa.” – Angelica Reyes

Para sa mga gustong mag-ambag, pumunta lang sa facebook.com/ambaganph at i-click ang sign up link.

 

 

 

 

SEDPI’s Group Yearly Renewable Term Insurance

SEDPI offers Group Renewable Term Insurance (GYRT) in partnership with CLIMBS, a service more catered to common Filipino households.

Term insurance provides protection against emergencies for a specific period of time. As lifetime coverage is not always needed, term insurance provides cheaper premiums with larger benefits. On average, investment-linked insurance schemes charge PhP80,000 in premiums.

For the same PhP1 million coverage, individual term life insurance premiums can be as low as PhP5,500 for ages 21-30 and cap around PhP21,000 for ages 51-60. SEDPI’s Group Yearly Renewable Term has PhP500,000 life benefits and PhP500,000 accident benefits. For ages 18-60, the premium is PhP4,000. This makes it even more affordable compared to individual term insurance policies. Due to its affordability, participation in group insurance is high.

Group insurance means that one contract is issued to cover a group of people. In this case, SEDPI is the policyholder. As a SEDPI member, one is entitled to access this group insurance program, even if they are abroad.

OFWs dealing directly with Philippine-based insurance agents are constrained by a lack of international selling licenses. Since SEDPI is the policyholder an directly deals with CLIMBS, OFWs can participate in the insurance program. Eligibility is determined by membership to SEDPI, and the process does not require rigorous underwriting due to the large number of members.

Yearly Renewable insurance indicates that the insurance protection coverage is active for one year. The annual premium must be paid in order to restart coverage for the following term.

The group’s performance based on mortality rates is evaluated each year. A higher mortality rate may mean a higher adjusted premium the following year, but a lower mortality rate than average can lead to a lower premium for the group.

SEDPI members in Mindanao have exhibited lower mortality rates, and SEDPI is in negotiations with CLIMBS to lower the premium for this group.

Enter keyword GYRT on Vince Rapisura’s Facebook messenger to join.

Never too small for hope (sari-sari store) – International Day of Rural Women 2020

Ms. Mary Jane Selecia, sari-sari store owner in Manguindanao, Philippines.

Mary Jane Selecia is a mother of five who lives in a rural community in Upi, Maguindanao in the Philippines. She runs a sari-sari store (corner store) in her community. COVID-19 has significantly affected their household and community.

To mitigate the spread of COVID-19, the government imposed community quarantine measures which includes physical distancing, movement restrictions, suspension of classes, and conduct of awareness campaigns on infection, prevention, and control measures (IPC). To cushion the socio-economic impact of the quarantine, subsidies were provided to households to complement their existing resources.

The government subsidy reminds Mary Jane that her household needs to maximize their savings. “My shop is bringing in one-third of the profit. I would earn around P4,000 (US$ 82) and now I am fortunate if I make P1,000 (US$20) a week. We invest P3,000 (US$ 61) a week just to keep the store running,” she said. Their household requirement for a month is estimated at PhP 9,000 (US$ 185) and was previously covered from the sari-sari store’s profits.

Borrowing money is becoming a vicious cycle for Mary Jane, “We have no savings and the income we make for our businesses go towards repaying our loans from relatives and friends. It seems like we are borrowing to pay over and over again,” she said.

Relief information is even more scarce when in the remote mountainous areas like Tinungkaan. The interventions in Mary Jane’s town were constrained to the Department of Social Welfare and Development (DSWD) conducting a survey to determine the poorest population in the village.

Mary Jane’s husband works as a Barangay Secretary and his work became an unexpected lifeline, “We did not need to apply for the Social Amelioration Program (SAP) because of my husband’s job. We are also beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps),” she explained.

The SAP has given qualified families P5,000 to P8,000 per month for two months. “We bought one sack of rice. The remaining money is additional capital for our store,” she said.

Farming has augmented the dwindling income of the household. “Our alternative sources of income are planting vegetables and raising farm animals. The small farm supports us while providing us with food. We are often forced to consume supplies from the sari-sari store,” she explained.

Stock in her store is already limited because of the limited supply in Noro, where she buys her supplies. Transportation cost for each of the trips to Noro is now P100, which is an exacerbated cost during the lockdown.

Everyday expenses have become a challenge for her community. “There is a decline in sales because many of our neighbors and customers do not have work,” she said. As the COVID-19 situation evolves, Mary Jane adapts to provide food on the table for her children and access to basic commodities in her community.

This case study on the plight of microenterprises in the Philippines was selected for the International Day for Rural Women (15 October 2020). It was originally shared across the Asian Disaster Preparedness Center (ADPC) platforms for the International Day for Rural Women

Here are the links:

Cambodia– Website: The Grain of the Matter
Link: Facebook, Twitter

Link: Facebook, Twitter

The Philippines– Website: Never too Small for Hope
Link: Facebook, Twitter

Plight of Microentrepreneurs in the Philippines Part 1 of 3 Sari-sari Stores

Never too Small for Hope- Part I

Doing business is largely a family affair in the Philippines – 80% of enterprises are family-owned or family-controlled. Microenterprises are the most intimate and the most common of these businesses. Nine of out of 10 MSMEs in the Philippines are microenterprises. Their kinship is the most deep-rooted because members of the community build these businesses around local needs.

Strength comes in numbers. Being small and having few employees put microenterprises in the most disadvantageous position. Most microenterprises are cottage industries, typically employing only family members. They are comprised of one to nine members and the very few largest ones have $6,000 in assets.

The Philippines is one of the countries with the highest economic damages as a result of disasters, having an Average Annual Economic Loss (AAL) of $284 million. Financial deficits hit the smallest enterprises the most. Economic losses have a ripple effect that magnifies and multiplies the challenges, especially for microenterprises. The COVID-19 pandemic has introduced lockdowns that prolong the hardships for many of these businesses.

The first part of our series explores the most inherent microenterprise in the Philippines. The sari-sari stores (mom and pop shops) are built into the DNA of every neighborhood and block across the national landscape. There are over 1.3 million sari-sari stores in the Philippines and 94% of consumers depend on them for everyday necessities.

Monalisa Maiquez, 41, Resident of Sta. Maria Kalamasig, Sultan Kudarat

Monalisa is the breadwinner in her family. It is a role that keeps her committed to maintaining her sari-sari store during the lockdown period. She lives with her brother, sister-in-law, and their two kids.

The family of five depends on local government assistance since the community quarantine that started on March 16, 2020, “We have received relief goods four times since the lockdown started. The local government unit of Kalamansig provided five kilograms of rice, two cans of sardines, three packs of instant noodles, 250 grams of sugar, and one pack of instant coffee.”

These rations are essential as Monalia’s revenue has been cut in half since the lockdown, “We would invest P8,000 to P10,000 every week for a profit of P1,000 to P1,500. We are only able to buy up to P5,000 of supplies for the store and our profits do not reach more than P500 weekly.” Her profits barely cover the P2,500 to P3,000 for household expenses.

Mobility restrictions introduce new obstacles for businesses as they lack supplies from the shortage of stocks. Monalisa is currently limited in procuring supplies, “I would travel to the market depending on what I needed. Now I am only allowed to make these trips once a week. We are also constrained to the number of purchasable items. For example, each business owner can only buy six-packs of instant noodles and six cans of sardine.”

Any form of financial assistance would promote the sustainability of Monalisa’s shop, “I have never experienced such a blow to my daily operations. I would need about P15,000 to recover. The business income is siphoned into funding our daily needs making savings nearly impossible.”

Mary Jane Selecia, 41, Resident of Tinungkaan, Maguindanao

The subsidy in income only reminds Mary Jane that her household needs to cut corners – “My shop is bringing in one-third of the profit. I would earn around P4,000 and now I am fortunate if I make P1,000 a week. We invest P3,000 a week to keep the store running.” She lives with her husband and five children. Their daily expenses come to P9,000 per month and were previously covered from the sari-sari store’s profits.

Borrowing money is becoming a vicious cycle for Mary Jane, “We have no savings and the income we make for our businesses go towards repaying our loans from relatives and friends. It seems like we are borrowing to pay over and over again.” Relief information is even more scarce when in the remote mountainous areas like Tinungkaan. The interventions in Mary Jane’s town were constrained to the Department of Social Welfare and Development (DSWD) conducting a survey to determine the poorest population in the village.

Mary Jane’s husband works as a Barangay Secretary and his work became an unexpected lifeline, “We did not need to apply for the Social Amelioration Program (SAP) because of my husband’s job. We are also beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps).” The SAP has given qualified families P5,000 to P8,000 per month for two months. “We bought one sack of rice. The remaining money is additional capital for our store.”

Her family’s coping mechanism is in her backyard, “Our alternative sources of income are planting vegetables and raising farm animals. The small farm supports us while providing us with food. We are often forced to consume supplies from the sari-sari store.” Stock in her store is already limited because of dwindling supply in Noro, where she buys her supplies. Transportation cost for each of the trips to Noro is now P100, which is an exacerbated cost during the lockdown.

Everyday expenses have become a challenge for her community, “There is a decline in sales because many of our neighbors and customers do not have work. I fear that we may have to shut down if this continues. I would feel more hopeful if I had P10,000 to replace the needed inventory.”

Marcia Mangubat, 53 years old, Resident of Tinagacan, General Santos City

The Mangubats are a persevering matriarch. Marcia Mangubat lives with her mother and two daughters. She runs her sari-sari store and the household with the mantra, “Maningkamot nalang gyud ta na mabuhi (we will work hard to survive).” The pandemic is no exception to this mind frame. Marcia’s store is the only source of income as her daughters look for jobs.

General Santos City is still under a curfew to prevent the spread of infections. Marcia makes sure that her family obeys the rules while trying to carry on with daily life, “The new regulations include wearing a mask whenever one steps out of the house. The first offense is a P3,000 penalty. The following offenses can lead to one-month imprisonment.”

She understands that safety measures are necessary and adapting to the challenges is the only way forward: “I go to the market myself to buy all of my supplies from the market at the center of the city. I would go at least once or twice a week. The lockdown conditions have led me to make this trip every two weeks.” The supply shortage has decreased Marcia’s revenue from P4,000 per day to P1,500. Her current profits do not cover the P7,000 she needs for the monthly household expenses.

The small bench and table for tea at the corner of Marcia’s shop is vacant these days. She has not experienced such a sales decline in 11 years, “I have been a member of Tinagacan Agrarian Reform Beneficiary Cooperative (TARBC) for six years so I was able to withdraw a savings amount of P5,000. I am afraid that I may reach a point where I will have to withdraw more of my savings.” TARBC teaches small business owners like Marica about how they can apply and access loans as well as create a savings scheme.

The local government has distributed rice, noodles, and canned goods to families like Marcia’s. It is one of the many sources of hope Marcia holds, “The supplies from the store sometimes meet our daily needs. I start the day grateful that all of us are in good health.”

Alejandra Cinco, 56, Resident of Lanao del Sur

Cassava was imported from Latin America through the Manilla Galleons over 400 years ago. It has become a staple across the Philippines since then. For Alejandra Cinco, the vegetable is a saving grace during the lockdown, “We grow cassava on our farm and I make homemade cakes to sell. Our harvest is not selling as much. I purchase sugar and the other ingredients for P100 and sell the cakes for P200. The cakes are the only profit I make some days.”

The virus outbreak may not affect everyone’s health but it deprives many of their basic needs. “I was able to stretch P20,000 towards household needs during the first month of the lockdown. The expenses included the P3,000 I need for asthma medication every two months. We have reduced our investment in the sari-sari store from P1,500 to P1,000 or P500. Buying food for our family is the top priority.”

Alejandra and her husband are housing her mother-in-law, brother-in-law, daughter, and two of their grandchildren during the lockdown period. The additions have raised her household expenses from P6,000 to P11,000 – “We have cut costs wherever we can. My husband delivers cassava to the Malabang area. He earns P700 per trip. I have started to accompany him during these trips to buy some of my supplies at competitive prices.”

Alejandra’s husband was the only one issued a quarantine pass when security measures were taken in April. She became unable to buy supplies from her local vendor: “I was referred to another grocery store but the prices were much higher. Our store sells basic goods such as sugar, coffee, soap, canned foods, and snacks. Some of these items have gone up to P10 more than before. It forces us to retail them at a higher price and lose the already dwindling number of customers.”

The higher prices and limited supplies have taken a toll on everyday operations. “I would have P500 to P1,000 in sales every day. Now I am fortunate if I make P300 on certain days,” states Alejandra.

She currently relies on her savings and one of her children for support, “My son lives in Cebu City and has sent financial support through the remittance center in the Malabang area. We are fortunate that he is able to provide a portion of his salary.”

This article was developed in partnership with the Asian Preparedness Partnership (APP). More information about APP may be found using this link: Asia Preparedness Partnership (APP).