Agriculture Secretary Francisco P. Tiu Laurel Jr. has directed state-owned Food Terminal Inc. (FTI) to set aside funds to buy large volumes of chili pepper and mung beans directly from local farmers in a bid to stabilize prices and reduce the country’s reliance on imports.
The Department of Agriculture has identified sili and munggo as priority high-value crops this year, though with different policy objectives. For chili pepper, the focus is on dampening sharp price swings that regularly hit consumers. For mung beans, the goal is longer-term: boosting domestic output to achieve self-sufficiency and preserve foreign exchange now spent on imports.
“We import significant volumes of mung beans, mostly from Argentina, even though local production already reaches about 45,000 metric tons,” Tiu Laurel said during a recent meeting with DA officials. “Our goal is to be self-reliant by 2027.”
Roughly a third of local mung bean production comes from Isabela, though the crop can thrive in several other regions. Munggo is a staple in Filipino diets and a major source of vegetable protein, containing roughly double the protein of cereals such as rice and corn.
Tiu Laurel said FTI should initially purchase up to 80 percent of domestic output—equivalent to around 3,000 metric tons a month—to incentivize growers by providing them with a reliable buyer and shielding them from volatile market prices.
A parallel approach is being planned for chili pepper, a crop that grows across much of the country but is highly vulnerable to heavy rains and storms. Production typically drops during the wet season, triggering price spikes. “Chilli prices rise because supply tightens due to crop damage caused by increased rain,” Tiu Laurel said.
The DA is allocating millions of pesos to build greenhouse facilities that can protect high value crops, including chili peppers, from extreme weather and support year-round production. This infrastructure push is aimed at smoothing supply and moderating prices, particularly during peak demand periods such as the holidays.
FTI is also being urged to invest in processing facilities that can convert fresh chili into flakes or paste, products widely used by restaurants, food processors, and retailers. Processing would allow surplus production to be absorbed during peak harvests and released when supplies tighten.
“By buying, processing, and distributing these crops, FTI will be fulfilling its real mandate,” Tiu Laurel said, positioning the strategy as a blend of farmer support, price stabilization, and food security.
