Containing the C-RICE-SIS


For the past weeks, we have seen the dramatic surge in the prices of local commodities, particularly that of rice, our country’s staple food. The Bureau of Agricultural Statistics recently stated that the price of Well Milled Rice (WMR) has rapidly increased from last week’s 30.64/kg to its current price of 32.18/kg. Furthermore, last year’s original price amounts to only 24.14/kg, hence indicating a sudden increase of 35.68% within the year. These numbers have translated into increased alarm and distress among the people, particularly among those who live with meager salaries and limited access to resources. Manifestation of such has been observed from private groups who dazedly hoard stocks for their own benefit, to families who continually crowd markets, in hope of availing cheap NFA rice. These, along with other imminent setbacks from the agricultural sector point that indeed, a problem exists – a point of conflict, which, if not given necessary attention, may lead to further political turmoil and deep social unrest.

The problem, although wide in scope, may principally be rooted in the ineffectiveness of our local institutions to carry out correspondingly viable solutions. While we acknowledge the far-reaching adverse effects of some global phenomena such as climate change and increased consumption, we must also highlight the problems of our local agricultural sector. The inadequacy of irrigation systems, the lack of commercialized rice seedlings and the alarming decrease in the number of fertile lands continue to persist. Moreover, the government’s inability to strengthen the NFA results to the perpetuating collusion of private companies, who monopolize the rice industry. These problems remain unaddressed mainly because of the fact that the agricultural sector, up to now, receives insufficient budget from the government.

We, the CSSP Student Council 2008-2009, believe that measures should have been taken to lessen the grave impacts we are suffering as a consequence of this rice shortage. On the local level, agricultural policies should have been implemented properly not only to sustain our domestic needs for food but more so to ensure the welfare of our farmers. Consequently, we call not only for a comprehensive agrarian reform program but ultimately, for a genuine agrarian reform law – one that will best serve the interests of the farmers rather than that of the landlords, who for years, have resorted to desperate ways to maintain hold on their properties. Also, government agencies must be sufficiently empowered in order for them to actually carry out their respective functions. Globally, we urge the government to review and evaluate existing trade agreements, along with the country’s current status with the International Monetary Fund and the World Bank. National interest must be the core consideration of our legislators, not the selfish motives and interests of the few.

The problem is not simply about having less food to eat, nor is it just about lacking a basic commodity; the problem is about how this issue has pervaded through the social, cultural and economic spheres of our society. As students of a college that prides itself in its long tradition of critical thinking and active involvement, we ought to take the crucial first steps towards awareness and participation. From the simplest deed of finishing our food, to the act of calling for a more responsible government, we can respond to the issue. By simply recognizing our roles as scholars for the country, we can make a difference.

¹ Bureau of Agricultural Statistics <http://www.bas.gov.ph/amsad_price1.php>

Current Mood: calm

            More than being a staple food, getting roughly 40%of daily food budget allotment of most Filipinos, rice is a political commodity in the Philippines; so much so that disturbances in its production and distribution can lead to political turmoil and social unrest. Despite having institutions like the Philippine Rice Research Institute (PhilRice) that were supposedly instigated to ensure the country’s self sufficiency in terms of rice economy, the Philippines has consistently been the biggest importer of rice in Asia, and even in the world, for more than a decade. This is a bold contrast to our neighbouring countries, Thailand and Vietnam, which have thrived as rice exporters from the South East region.

            The ironies in our present situation seem indefinitely many. In the past few weeks, President Gloria Macapagal Arroyo, backed up by the Secretary Arthur Yap of the Department of Agriculture, have been trying to assure that we are not having a food shortage, while implementing orders that actually induce panic among people. Troops armed with 16-M guns that oversee the distribution of the subsidized rice provided by the National Food Authority (NFA) and Yap’s personal calls for reducing rice intake have made the situation seem worse that it probably is, assuming that their claim about the absence of a crisis is true.

            Secretary Yap claimed that the problem is not in the supply of rice, or the lack of it, but in the price. A somewhat permuted statement from Senator Angara, who was a former DA secretary himself, implied the same thing; only this time, the seeming problem is attributed to inefficient distribution due to hoarders that want to fuel speculations in hope of another price hike. According to the incumbent secretary, we should not panic since we are still counting on the summer harvest and the 1.5 M-T delivery from Vietnam.  Nonetheless, some personalities, one of which was Senator Richard Gordon, have nudged the government to admit to having a real problem so real solutions can also be made.

            Fortunately, or unfortunately maybe, the Philippines’ case is not an isolated one. With prices in the world market jumping almost 50% just the past two months, a lot of Asian countries have also felt the need to regulate the flow of rice in and out of their countries. As a consequence, Thailand, which has always been a supplier of rice, along with Vietnam, has refused to deliver rice to the Philippines. Vietnam only agreed to sell us 50% percent of our usual order. Cambodia stopped the importation of rice to regulate its price.

Pointing fingers

             Several things have been said to contribute to the globally-experienced rice price hike.  The actual decrease in rice supply in the World market can be attributed simultaneously to natural disasters like flood, climate changes and even the production and use of bio fuels that usurp arable lands that otherwise could have been used for rice planting. The fuel and fertilizer cost hike compound the problem with rice cost.

            Secondly, Bicol Representative Edcel Lagman claimed that the population growth actually outpace the rice supply increase. Lagman, who is an open proponent of population control programs, therefore suggested that the problem on rapid population growth be addressed as well. PhilRice admitted that the increase in rice production is rendered insignificant, considering the number of consumers. Though rice production may be high, the enormity of the population still necessitates importation. The same logic can be used to explain why Thailand, which has a slow population growth rate, is an exporter.

            Palawan Representative Abraham Mitra, meanwhile, questioned the validity of importing rice, when the bulk of the money should be used to intensify programs for domestic rice reproduction. Dr. Arsenio Balisacan, head of the Southeast Asian Regional Center for Graduate Study and Research in Agriculture (SEARCA), said that the government fund allotment for agriculture is really low, amounting to roughly 0.1 percent of  Gross Value Added (GVA) in the Philippines. This is a figure that is painfully below the recommended 1.0 percent for developing countries. Our government spends only one thousand pesos per farmer, which is a very small amount compared to three to four thousand spent on each farmer in Japan, Thailand, Vietnam, etc. This is despite the fact that our farmers spend higher than Vietnamese and Thai farmers do in producing rice, according to the book “Why does Philippines import rice?”. In addition, Filipino traders pay higher interest rates when they borrow from banks—15% as opposed to the 5% interest in Thailand and Vietnam. Thus essentially, according to The Sunday Times, the existing problem may have been a result of successive administrations that paid little mind, and money, to the agricultural sector.

            Senator Villar pointed out the president’s ineffectiveness against the rice cartel, the fertilizer scam (in which the president was also implicated), and the corruption within NFA itself as causes for the rice shortage. Just recently, a Kidapawan City-based NFA official was fired for pulling out 20,000 sacks of rice, to be sold to traders, from the NFA warehouse.  

                Another possible cause of shortage may have been due to fewer fields available. A significant number of rice fields in the Philippines are now homes to subdivision dwellers and play ground to golf players. Representative Mitra reminded us that Executive Order 363 issued in 1997, is and should still be effective. It prevents the conversion of irrigable lands. Another land-related argument was raised by Silverio Berenguer in his column at the Philippine Daily Inquirer. For him, the shortage is due to smaller land-rice proportion. The Agrarian Reform implemented more than thirty years ago cut lands into economically insignificant pieces.

Plans of Action an Recommendations

In response to all these, President Arroyo stated some plans of action: ensure the import and proper distribution of rice, and castigate price manipulators. So far, subpoenas have been issued to the owners of six warehouses that are suspected of hoarding. (Life imprisonment awaits those who will be proven guilty.) To fortify the campaign against price manipulators, the president relayed that the executive branch shall submit a proposal for the creation of a Consumers’ Bill of Rights to Congress.

Moreover, Senator Richard Gordon proposed the following solutions: 1.) finding alternative sources of carbohydrates like potato, yellow corn and cassava; 2.) irrigation expansion and 3) use of better seeds.

Reference:

(You may want to look up these sites for further reading on the issue.)

http://www.upiasiaonline.com/Economics/2008/04/02/why_a_rice_shortage_in_the_philippines/6495/

http://www.inquirer.net/specialreports/rice/view.php?db=1&article=20080407-128806

http://www.philrice.gov.ph//index.php?option=com_content&task=view&id=470&Itemid=2

http://news.bbc.co.uk/1/hi/business/7342161.stm

http://www.manilatimes.net/national/2008/apr/06/yehey/top_stories/20080406top3.html

http://rinf.com/alt-news/activism/starving-haitians-riot-as-food-prices-soar/2944/>

http://www.newsvine.com/_news/2008/04/15/1431334-arroyo-philippines-has-enough-rice

Current Location: UP Diliman
Current Mood: contemplative