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Sunday, May 05, 2008

 

Southeast Asian rice cartel ‘anti-poor’

 
MANILA: Senior Philippine officials on Saturday expressed concern about the plan for a Southeast Asian rice cartel, saying it would cause greater problems than it would solve amid a global food crisis.

The so-called Organization of Rice-Exporting Countries (OREC) is “anti-poor and will only exacerbate hunger and poverty rather than ease it,” Senate Majority Leader Francis Pangilinan said in a statement. “They have to think twice for humanitarian reasons.”

Modelled on the oil cartel of the Organization of Petroleum-Exporting Countries (OPEC), OREC would comprise Mekong countries and rice-producing countries Vietnam,Thailand, Myanmar, Laos, and Cambodia.

The proposed OREC members are also members of the Association of Southeast Asian Nations (ASEAN), along with the Philippine — one of the world’s biggest rice importers.

Sen. Manuel Roxas 2nd , chairman of the trade and commerce committee, called on the Department of Foreign Affairs to formally propose an ASEAN Leaders’ Summit on Rice and Food Security in light of the OREC proposal.

Roxas said in a statement that failure by ASEAN members to unite in efforts to build food security would “raise doubts in the minds of other world leaders on ASEAN’s determination to pursue economic integration.”

“Before OREC is institutionalized, the ASEAN community must weigh in as a regional bloc to obtain trade privileges with its fellow members in keeping with the ASEAN spirit,” he added.

Surge rice prices in the Philippines has prompted the government to impose tighter control on the provision of state-subsidized rice to make sure the country’s poor do not go hungry, Social Welfare Secretary Esperanza Cabral said also on Saturday.

“The government will pull out subsidized rice from public markets in the middle of May with the full implementation of the family access card system,” Cabral added.

She told local radio the supply of National Food Authority (NFA) rice, which sells for P18.25 per kilo, would only be available in NFA distribution outlets and parishes. The food agency would also set up 1,000 rolling stores in slum communities, where millions of poor people live.

Cabral said at least 700,000 poor families, or some 3.5 million people, in the premier region Metro Manila are expected to be given the family access cards.

Agriculture Secretary Arthur Yap said the P18.25 per kilo rice will be replaced by P25 ($0.6 dollar) per kilo rice in the market once the government-subsidized rice has been fully withdrawn from public markets.

A survey covering more than 12 million people living in Metro Manila is being conducted to determine who are qualified to receive the rice access cards.

Growing concerns over soaring food prices which threaten to push millions deeper into poverty overshadowed the start of the Asian Development Bank annual meeting in Madrid also on Saturday.

Bank director general Rajat Nag said the surging cost of food affects one billion poor in Asia who spend a lot of their wages on food.

The benchmark Thai variety was priced last Wednesday at $998 per ton for export, up from 512 dollars a ton in January this year, the Thai Rice Exporters Association said in a price survey.
-- AFP and Xinhua

   
 

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