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The National Economic and Development Authority (NEDA) is seeking to incorporate satellite and drone technology into the government’s efforts to combat inflation. NEDA Assistant Director Rory Jay Dacumos stated that while the agency currently relies on Philippine Statistics Authority (PSA) data for inflation policy, additional data sources are needed to enhance inflation analysis.

NEDA recently sent a team to the Philippine Rice Research Institute (PhilRice) in Muñoz, Nueva Ecija to assess the potential of utilizing the Philippine Rice Information System (PRiSM), which collects field data through satellite-based Synthetic Aperture Radar (SAR) sensing. This data collection method is not affected by cloud cover and has an overall accuracy of up to 95 percent. Field personnel also contribute to the data collection through a mobile application.

PRiSM can process secondary data collected through drones when SAR images are insufficient. The team discovered that PRiSM could provide validated rice field data to registered stakeholders every seventh day of the succeeding month. In comparison, PSA data is only released on a quarterly basis. Dacumos noted the reasonably accurate nature of the PRiSM data and highlighted its potential to enhance policy recommendations on inflation.

The SAR images utilized by PRiSM are derived from the Sentinel-1A satellite, with the upcoming launch of the Sentinel-1C satellite planned for later this year. The collected data is used to generate area maps that indicate planting areas, time of planting, estimated yields, areas affected by flooding, and areas impacted by drought. Although currently applicable only to rice, PhilRice suggests the technology and methodology of PRiSM could be adapted for monitoring other crops.

The surge in food prices due to supply constraints contributed to a 14-year high of 8.7 percent in inflation in January 2023. While inflation has since significantly eased in the past six months, concerns remain over potential rice price acceleration resulting from the impact of the El Niño weather pattern. Given the likelihood of shortages in the coming months, importation may prove challenging as other countries are also expected to be affected by El Niño. Rice accounts for nearly 9.0 percent of the inflation basket, representing a significant upside risk to inflation.

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