'Ompong' threatens to derail rice supply reprieve
MANILA, Philippines — Potential rice harvests later in the year are on Typhoon Ompong's path, putting at risk Filipinos' much-needed reprieve from rice supply problems that saw the main staple's prices soar in recent months.
At 4 p.m. on Thursday, weather forecasters continue to expect "Ompong" to traverse along northern Luzon and make landfall over Cagayan and Isabela.
The strength and scope of "Ompong," however, put neighboring regions at risk, with Metro Manila placed on Signal No. 1 and Central Luzon, the country's food basket, under "red alert."
The United Nations' Food and Agriculture Organization labels Central Luzon as the "rice granary of the Philippines." In 2017, government data showed the region contributed 3.63 million metric tons of rice, equivalent to 19 percent of total rice production.
IN PHOTOS: Farmers from Amucao, Tarlac take advantage of the sunny weather to harvest rice.
— Philstar.com (@PhilstarNews) September 13, 2018
The @NDRRMC_OpCen has urged the public not to be fooled by the clear weather and to make the necessary preparations as the massive 900km-diameter #OmpongPH nears the Philippine landmass. pic.twitter.com/srjtuRLX84
Agriculture Secretary Emmanuel Pinol earlier said rice supply would not be a problem when "Ompong" hits, and that harvests would be safe, but data from the International Rice Research Institute show otherwise.
"Ompong" would hit a month ahead of the start of peak rice harvests season that run from October to December, IRRI data show. This indicates that when "Ompong" hits, potential rice harvests are at risk of being damaged.
The government is banking on the harvest season to boost supplies of the grain, whose prices have risen this year due to failure of the government to import rice on time.
Philippine Statistics Authority data show average retail prices of regular-milled rice rose 15.24 percent year-on-year in the last week of August. Those of well-milled rice went up 11.63 percent. Both are the fastest so far this year.
The problem began in February when the state-led National Food Authority announced its buffer stock of cheap rice sold to the poor was only enough for two days, below the 15-day requirement.
Since then, President Rodrigo Duterte has mandated imports of up to 500,000 metric tons, but nearly nine months after, only 350,000 MT have arrived, while NFA's buffer stock remains below minimum and ample only for four days.
Without the cheaper alternative, the poor are forced to buy commercial rice, together with the rest of the population. This drives demand and pushes prices up.
Rice, the country's main staple, accounts for nearly a tenth of the basket of basic goods and commodities a Filipino purchases. As a result, high rice prices have pushed inflation up to an over nine-year high of 6.4 percent in August.
Rice is a key consideration on the draft executive order that would lift non-tariff barriers to food shipments, submitted by the economic managers to Duterte.
According to the National Economic and Development Authority, the EO would ensure the "immediate release of rice" from government warehouses to the market. As for potential harvests, the government also vowed to "monitor" their transfer from farms to warehouses to ensure supply.
Aside from rice shipments, non-tariff duties would also be lifted for meat, fish, vegetable and sugar, prices of which have risen also in recent months due to tight supply.
"The issuance of the (EO), as well as quick implementation of immediate and short-term measures, will address the supply issues that have been driving up inflation,” Socioeconomic Planning Secretary Ernesto Pernia said in a statement on Thursday.
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