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The National Economic and Development Authority (NEDA) in the Philippines is seeking to incorporate satellite and drone technology into its efforts to combat inflation. NEDA Assistant Director Rory Jay Dacumos explained that while they currently rely on data from the Philippine Statistics Authority (PSA) to inform their inflation policies, they need to broaden their data sources to enhance their analysis.

To explore this possibility, NEDA recently sent a team to the Philippine Rice Research Institute (PhilRice) in Muñoz, Nueva Ecija. The team’s objective was to evaluate the potential of the Philippine Rice Information System (PRiSM), which collects field data using satellite-based Synthetic Aperture Radar (SAR) sensing that is not affected by cloud cover. The collected data, with up to 95% overall accuracy, is further supported by ground data collected by field personnel using a mobile application.

In instances where SAR images are not sufficient, PRiSM can process secondary data captured by drones. The NEDA team found that PRiSM could provide validated rice field data to registered stakeholders every seventh day of the following month, as opposed to the quarterly basis of PSA data.

The satellite images used by PRiSM are provided by the Sentinel-1A satellite, with the upcoming launch of the Sentinel-1C satellite later this year. The data collected is used to create area maps indicating areas where rice has been planted, planting timelines, estimated yields, areas affected by flooding, and regions impacted by drought.

While PRiSM currently focuses on rice, there is potential to adapt the technology and methodology to monitor other crops. The integration of satellite and drone technology into inflation analysis aims to enhance policy recommendations.

This move comes in response to the inflation surge experienced last year due to supply constraints, contributing to a 14-year high of 8.7% in January 2023. Despite the recent easing of inflation, concerns remain regarding the impact of the El Niño weather pattern on rice prices. As rice accounts for almost 9% of the inflation basket, the potential shortage and difficulties in importation due to the global El Niño phenomenon pose a significant inflation risk.

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