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Wednesday, April 23, 2008

 

BIG DEAL
By Dan Mariano
RP panic-buying jacks
up world rice prices

 
THE Philippines is not only an exporter of rice—it has actually become the world’s biggest buyer of the cereal in the world market.

Officials, led by Agriculture Secretary Arthur Yap, have been insisting that the country has no shortage of the staple food of the vast majority of Filipinos. The only problem, they add, is that rice has become more expensive, not just here, but also in the world market.

So how are they going about trying to solve the problem? Answer: By putting in more orders for rice from overseas suppliers.

The result of what looks, smells and feels like panic-buying by the Philippine government is even higher rice prices in the world market.

It is bad enough that rice stocks are at a record low world-wide. This shortage is amply illustrated in Thailand—one of the traditional sources of rice exported by the Philippines. Last month, per metric ton freight on board (FOB) of Thai rice was quoted at an average of $356—by April the quotes had jumped to $855.

As if those levels were not bad enough, the latest tender offered by the National Food Authority of the Philippines quoted rice prices by as much $1,200 per ton FOB.

The government’s panic-buying tends to confirm suspicions that officials—who regularly announce, “We have enough rice stocks,”—are not being candid at all.

In the past, this corner has been supportive of the actions taken by the Department of Agriculture to address what at that time seemed nothing more than a “rice-price shock.”

It has been over a month, but the situation has not gotten any better. In fact, official announcements about a plan to raise the retail price of NFA rice and curtail its distribution give cause for worry.

Do our agriculture officials really know what they are doing—or are rumors that some quarters are merely trying to profit from the crisis correct?

Food master plan

Earlier this month, Yap announced that a so-called food production master plan was being drawn up by the DA, with the help of experts from the Philippine Rice Research Institute (Philrice) and the University of the Philippines at Los Baños—along with an “Eminent Persons Group.” These experts, Yap added, will help oversee the implementation of the P43.7-billion FIELDS program, “a package of intervention measures for Philippine agriculture” released by Malacañang.

The Eminent Persons Group (EPG) includes former DA secretaries Domingo Panganiban, Carlos Dominguez, Robert Sebastian and Salvador Escudero III; former agriculture undersecretary Apolinario Bautista; ex-NFA Administrator Gregorio Tan; Philrice Executive Director Leocadio Sebastian; Dr. Emil Javier of the National Academy for Science and Technology; Dr. Leo Gon­zalez of Strive Foundation; and former PhilRice Director Dr. Santiago Obien.

Interestingly, the EPG does not include a single representative from the farming sector, which fact has only made it vulnerable to potshots from leaders of those Filipinos who do the actual, backbreaking work of cultivating rice.

Several organizations of rice farmers were quick to question the composition of the EPG, whose initial recommendations include allotting more government funds for hybrid seeds.

Jaime “Ka Jimmy” Tadeo of the National Rice Farmers Council had this to say about the EPG: “Except for a few, these are the very same people who have led us to this predicament. It is no surprise that one of their fist recommendations to the president is to raise the hybrid rice subsidy. It was upon the advice of some of them that government wasted billions in this failed program despite its minimal contribution to rice production.”

Tadeo said that among the EPG’s members are former officials who “contributed to the current rice problem when they practically abandoned the country’s quest for rice self-sufficiency.”

He added that these “eminent persons promoted a strategy of relying on the international market for our rice needs. We are now bound to suffer because of this erroneous policy. The people who promoted this policy should be held to account for their mistake.”

Another farmer leader, Jun Adorable, who chairs the Forum for Organic Rice Farming in Min­danao, said: “We are dismayed to learn that Mrs. Arroyo appointed the same people to the Eminent Persons Group who led us down the path to disaster as advisers on the issue of the rice crisis.”

Adorable recalled that a rice crisis occurred in 1995 during the term of an ex-DA secretary who now sits in the EPG. “These so called ‘eminent people’ should be apologizing to the people for their mistakes,” he added.

dansoy26@yahoo.com

   
 

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