T is ironic that,
just a few short weeks ago, we were all focused on the high-tech anomaly that is
the multi-billion dollar National Broadband Network/ZTE Corp. deal only to find
out that we face an even more basic and serious crisis – not having enough
affordable rice to go around.
The last time we witnessed queues for government-subsidized
rice, the country was still under martial law. But it is happening again now
amid claims that the economy is stronger than ever.
The truth is that the current "rice crisis" is an issue of
price rather than supply. There are still enough global rice stocks to feed
everybody, granted that an oversupply will naturally bring down rice prices
everywhere. But with rice cultivation under pressure from other more
commercially profitable crops and decreasing arable lands, rice is destined to
become more and more expensive. The fact that the government’s buying rate for
palay has already been increased to P17 per kilo is an admission that the rice
to be obtained will hit the market at around P35 per kilo at current recovery
rates.
According to the Food and Agriculture Office (FAO) of the
United Nations, global rice production is expected to increase this year by 12
million tons or 1.8 percent if normal weather conditions prevail. And, that this
"production increases would ease the current very tight supply situation in key
rice producing countries."
FAO even notes: "Sizable production increases are expected in
all the major Asian rice producing countries, especially Bangladesh, China,
India, Indonesia, Myanmar, the Philippines and Thailand, where supply and demand
are currently rather stretched. Governments in these countries have already
announced a series of incentives to raise production."
But "international rice trade is expected to decrease, mainly
due to restrictions in main exporting countries," FAO adds, pointing out that
"higher rice production in 2008 could reduce the pressure, but short-term
volatility will probably continue, given the very limited supplies available
from stocks. This implies that the market may react very strongly to any good or
bad news about crops or policies."
FAO cites the imposition of minimum export prices, export
taxes or export quotas and bans by China, India, Egypt, Vietnam and Cambodia
that are expected to reduce rice exported from these countries. Bad news,
indeed, for a rice-importing country like the Philippines as global rice prices
have escalated by about 20 percent since the start of the year.
Very clearly then, this is not one of those passing problems.
We can expect a recurring, if not worsening of the situation. It touches the
very heart of our national food security. With less and less land devoted to
rice production coupled with increasing productions costs, delivering affordable
rice will be a tremendous challenge. One that requires a battery of measures and
tons of political will to implement. In the long-term, we cannot rely on
continued importation to meet our domestic requirements. We must become
self-sufficient with regards to food production, rice in particular.
In this light, there is a need to pass and implement a
comprehensive national land-use policy as well as national physical framework
plan to ensure that we will have enough arable land to be devoted to rice
production. At the rate the private sector is converting agricultural lands for
commercial, residential and industrial purposes, we may be left with nothing but
the most hostile lands to be devoted to producing staple crops.
Also, there is a need to put into place a broad and all-inclusive support
system for the agricultural sector to ensure that even small-scale producers
have enough access to credit, inputs and other requirements to increase their
yields and lessen post-harvest losses.
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