Rice buffer good for 12 days imports coming

MANILA, Philippines – Some 396,000 metric tons of rice equivalent to 12 days’ supply are on standby at the National Food Authority (NFA) warehouse, and another 495,000 metric tons to last for 15 days are either in transit or waiting to be unloaded at the pier.

The goal of the Department of Agriculture (DA) is to bring the NFA’s rice stock up to the equivalent of 45 to 60 days.

NFA administrator Jessup Navarro told The STAR their buffer stock includes 40,000 metric tons of premium grade rice from the United States, part of the community loan for the Philippines under US Public Law 480.

The rice arrived from the US about two months ago, he added.

Navarro said the US premium grade rice is being repacked into packages of one to three kilos to be sold to the public at P25 per kilo.

The public will be allowed to buy only up to three kilos each of NFA rice, he added.

Navarro said the NFA is directly distributing its rice stock to accredited dealers and will sell directly to consumers through its rolling stores.

The NFA has the authority to import up to 2.2 million metric tons of rice this year, he added.

Navarro said the Philippines is hoping to secure additional rice from the US under another program known as the GSM 102.

The US Department of Agriculture had recently agreed to increase the original loan amount from $65 million to $75 million, he added.  

Rice yield to increase – GMA

In Hong Kong, President Arroyo said yesterday the government expects domestic rice yield to increase by seven percent this year.

Speaking at the Credit Suisse-sponsored Asian Investment Conference, Mrs. Arroyo said the country could attain a seven percent growth in rice production this year in spite of the tight supply of rice worldwide.

“We recognize that farming needs to be modernized,” she said.

“We have been rigidly implementing our Agricultural and Fisheries Modernization Act, spending unprecedented amounts of money in our agriculture sector – irrigation, farm-to-market roads, food support, research and development.”

Mrs. Arroyo said her confidence lies in the government’s heavy investments in modernizing the agriculture and fisheries sector.

“That’s why we expect this year a seven percent increase in rice production,” she said.

“What we are doing as part of pump-priming is to spend more and more on agricultural modernization and also on targeted release for the poorest of the poor, who will be the ones to bear the brunt of the increase in price of rice.

“What is important is that we make sure that the poorest of the poor will get relief from the hardships not only brought about by the declining world production but also by all the other vagaries that would come up – the high price of oil, the credit crunch in the big economies such as the United States.”

‘Help farmers, stop rice imports’

In Isabela, Gov. Grace Padaca urged the national government to focus more on extending assistance to rice farmers to achieve rice sufficiency instead of resorting to rice importation.

“It’s about time that the national government continues or even doubles its effort in assisting our farmers,” she said.

Padaca called on the administration to set up more irrigation systems, water impounding dams and other related infrastructure as well as farm inputs to farmers, especially in rice-producing provinces like Isabela.

Padaca said Filipino farmers could be at par with, or be even more than capable than their counterparts in other rice-producing countries if given the proper attention.

“Just give our Filipino farmers the needed support and we will not talk about rice shortage,” she said.

Padaca said under Isabela’s price stabilization program for rice and corn, they were able to increase the income of rice and corn farmers with subsidy from the provincial government through the NFA.

“There are still many things we can do for us to achieve rice sufficiency by not necessarily resorting to importation,” she said.

“Just extend our farmers the needed support.”

Isabela, along with Nueva Vizcaya, Quirino and Cagayan provinces, contributes at least 40 percent  of the country’s rice requirements.

Meanwhile, Finance Undersecretary Roberto Tan told reporters yesterday the government is looking for ways to “address” the increase in rice prices without resorting to subsidy.

“Definitely, the government will be providing appropriate measures,” he said.

The NFA was losing some P6 billion a year due largely to rice subsidies, he added.

The government will look at the possibility of reducing the 50 percent tariff on imported rice, Tan said.

Bishops to help distribute rice

The Catholic Bishops’ Conference of the Philippines sees no problem with the proposal of Agriculture Secretary Arthur Yap for NFA rice to be distributed in churches and parishes.

“That can be arranged,” said Caloocan Bishop Deogracias Iniguez Jr., CBCP public affairs chairman, over Catholic Church-run Radyo Veritas yesterday.

“In the past, the Church and government usually come up with joint projects for the people in times of crisis.

“So that (proposal) can be stressed either in individual diocese or in the CBCP as a whole. Maybe we can talk to our president in the CBCP.”

Iniguez said there is nothing wrong with the Church lending its credibility in advancing government programs as long as it is done for the common good.

“I don’t think it’s that bad since we also have some departments in government that still enjoy credibility,” he said.

“Maybe they just want the help of the Church for their project.”

The government must ensure that the limited supply of NFA rice should reach as many rightful beneficiaries as possible, Iniguez said.

NBI to probe rice hoarders

The National Bureau of Investigation will probe rice hoarders and file charges against them in court.

Regional Director Ricardo Diaz, chief-of-staff of NBI-Deputy Director for Intelligence Services (DDIS) Ruel Lasala, was finalizing the details of an agreement between NBI Director Nestor Mantaring and NFA’s Navarro.

“Right now, we only accompany them and the NFA officers are the ones doing the inspections and investigations,” he said.

“But once the MOA is signed then we could do the inspection, seizures, investigation and the filing of cases.”

Last March 28, an NBI team led by Attorney Diaz accompanied NFA officials in raiding the Metro Gains Marketing Inc. in Barangay Punturin, Valenzuela, where they reportedly found 20,000 sacks of NFA rice and about 1,000 sacks of Sinandomeng high quality rice.

‘Rice crisis to hit children’

Children in Mindanao could be hit hardest by the impending rice crisis, according to the United Nations food agency.

Valerie Guarnieri, World Food Program (WFP) country director,  told Newsbreak  the costs for food purchases of the UN agency have almost doubled.

“The price increases are straining our budget,” Guarnieri said.

“We may be able to reach less people as a result.”

Guarnieri said the WFP’s budget for food purchases (to include rice, corn, and cooking oil) now account for 60 percent of the agency’s total budget, from 45 percent last year.

The WFP is suffering from a $500-million gap in its budget for its worldwide operation as a result of skyrocketing prices of grains, Guarnieri added.

Guarnieri said if the trend continues, the WFP may cut down on the number of beneficiaries for its “Food for Education” program.

Based on the latest prices of rice, the WFP is spending $11 million for 23,000 metric tons of rice, Guarnieri added.

The UN-WFP is extending food assistance to about 1.1 million people in Mindanao as part of its “Food for Education” program in the region.

Under the program, 187,000 children in Grades 1 to 6 are provided with 12.5 kilos of rice each month to encourage parents to send their children to school.

‘Plant rice in prison’

Former Bureau of Corrections director Ricardo Macala has proposed converting and developing the penal colonies in Iwahig, Sablayan, Abuyog and Davao into rice lands for GMA Super hybrid rice, a rice variety named after Mrs. Arroyo.

“Tripling our country’s rice production will promote self sufficiency in rice, thus reducing or ending our dependencies on rice importation,” he said.

Macala said the Iwahig penal colony has nine major riverways and almost a hundred tributaries.

“Since it is only in Iwahig where watersheds are abundant, irrigation is continuous even in the unlikely incident of draught,” he said.

Macala said Iwahig could support rice paddies even if it does not rain for more than a year.

Iwahig is a typhoon-free area with an abundant workforce of inmates, which could be duplicated in other penal colonies, he added.

Iwahig covers 28,000 hectares in Palawan. Sablayan Penal Colony in Mindoro has 16,000 hectares, Abuyog Penal Colony in Leyte has 12,000 hectares and Davao Penal Colony has 5,500 hectares, or a total of 61,500 hectares for planting rice, Macala said.

‘Privatize rice importation’

Sen. Loren Legarda has filed a bill seeking to allow farmers to import rice to stop an impending shortage.

Senate Bill 1081 aims to amend Presidential Decree 1770 to allow the NFA to focus on buying at market prices the grain produced by local farmers.

Legarda said the country needs to push for a robust and rapidly expanding farm sector.

“Solid food production is also the best way for us to guarantee stable and affordable consumer prices. In the process, we also get to fight widespread hunger – by creating gainful employment in the countryside and making food more accessible, both in terms of price and income, to more people,” she said.

Senate President Manuel Villar Jr. has introduced a similar measure, and so has Nueva Ecija Rep. Eduardo Joson.

The government must temporarily subsidize fertilizer and pesticide supplies for farmers, Villar said.

Sen. Edgardo Angara said the supply problem can be corrected by four million metric tons of rice that would be harvested from local paddies in April and May and the two million commitment from Vietnam.

“The Vietnam commitment of two million will boost the rice stocks. Then, the harvest season will start again in October till November,” he said.

Sen. Richard Gordon said the country still needs to import 15 to 20 percent of its rice needs despite billions spent by the government on increasing rice production.

“We must be very certain of our rice supply figures before raising an alarm lest we fuel speculations that could compel producers and the market system to further (stock) up on supplies,” he said. — Marianne Go, Marvin Sy, Charlie Lagasca, Des Ferriols, Edu Punay, Evelyn Macairan, Arnell Ozaeta, Christina Mendez, Katherine Adraneda, Paolo Romero