Rice woes not yet over, GMA warned

May 4, 2008

Angara says more imports needed for lean months

BY JP LOPEZ: ADMINISTRATION Sen. Edgardo Angara yesterday belied President Arroyo’s claim of rice stability as he warned that the current global food crisis that triggered protests all over the world could also destabilize the Arroyo administration.

“Though we have enough rice supply today, we will have to rely on imports to cushion the anticipated rice shortage during the lean months,” Angara said.

Arroyo on Friday said the Philippines has concluded contracts with Thailand, Vietnam, and other Asian countries for 1.2 million metric tons of rice. The volume, she said, is “enough to cover the 10 percent differential which is our production and consumption.”

She said the country is buying more rice only for “buffer stocks.”

Agriculture Secretary Arthur Yap also Friday said government would try to maintain at least a 30-day inventory of stocks during the third quarter, a traditionally lean period for rice supplies.

“We are going to enter July with 32 days inventory so we will continue procuring to keep buffer stocks at 30 days,” he said.

He echoed Arroyo’s statement, saying the National Food Authority has bought enough imported rice to meet domestic demand and remaining tenders will go to boosting buffer stocks.

The Philippines, the world’s largest rice importer, has bought about 1.6 million tons of rice so far this year in a flurry of tenders that helped propel world prices to record highs.

A tender for 675,000 tons of rice is scheduled for today but Thailand, the world’s largest exporter, has announced it will not endorse private exporters for the tender.

An inter-agency committee on rice has recommended the importation of 2.2 million tons.

Angara said although the food crisis is worldwide, “it is acutely felt in the Philippines because we depend on other countries for our basic foods.”

“The demand for rice increased last year by 0.9 percent, or to nearly 424 million metric tons. The supply, however, increased only by less than 0.7 percent. And of this, only 7 percent or about 35 million tons were put on the world market. This has caused much alarm to other countries like Haiti,” he said.

Two farmers’ groups appealed to government to be transparent over the rice crisis.

The Confederation of Sugar Producers’ Association Inc. and the Panay Federation of Sugarcane Farmers Inc. also appealed to the Senate to consider all major points in the ongoing hearings on the possible extension of the 20-year-old Comprehensive Agrarian Reform Program (CARP), citing its impact on the country’s deteriorating rice production.

“Logic indicates there is a real food crisis, which is why we have panicky reactions from national and local governments, as well as the private rice trading sector,” said Gil Marie Alba, legal counsel of the two groups.

She noted that even the US State Department website describes Philippine agriculture as suffering from low productivity, low economies-of-scale, and inadequate infrastructure support.

In a position paper submitted to agrarian reform committee chairman Sen. Gregorio Honasan, the groups cited major concerns which they said should be considered in determining how the Philippines, being an agricultural country, became the No. 1 importer.

The groups also lamented that while the CARP was intended to give farmers control of the lands they till, the government failed to foresee its adverse impact on rice production.

“Traditionally, landowners provided three factors of production - land, capital and entrepreneurship - while farmers provided one, namely, labor. When the lands were taken from the landowners, the policy-makers apparently forgot that, aside from land, landowners also provided capital and entrepreneurship,” Alba said.

Without preparing adequate safety nets or the so-called “support services,” the farmers where unable to sustain rice production because they also had to face other concerns such as financial resources and marketing their production, Alba said.

“Without the landowner, the poor farmer must fend for himself and face the burdens, risks and losses alone with his meager resources,” Alba said.

“This time, farmers not only had to take on the task of farming the land; they must also plan, capitalize, and market their goods by themselves,” Alba added.

The Senate committee on agrarian reform went to Roxas City Friday to start consultations with farmers, government officials and other stakeholders in the CARP issue.

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