BY JOCELYN MONTEMAYOR

A DAY after the National Food Authority said it was eyeing an increase in the price of government-subsidized rice, President Arroyo yesterday announced she was considering pulling out the P18.25 NFA rice from public markets and selling this instead in non-traditional outlets like churches and mosques.

This will deter hoarding and diversion of NFA rice, she told the Local Peace and Security Assembly in Bangued in Abra.

She said NFA rice, because of its good quality, passes as commercial rice. Erring NFA officials in connivance with unscrupulous traders divert the NFA rice and sell it at a higher price as a commercial grade grain, she said, adding government has caught some of these NFA employees.

"That’s why we are toying with the idea of stopping the release of NFA rice through the public markets…The temptation to divert has become too big as well and that’s why we are seeking the help of the LGUs and the church-based communities," she said.

Arroyo said tapping non-traditional outlets is part of a three-phased action plan to ensure food security.

Press Secretary Ignacio Bunye said those who really need subsidized rice will get it.

He said some parishes started assisting the NFA in the rice distribution Wednesday.

The cheapest commercial rice sells for P34 a kilo. The NFA’s commercial grade rice sells for P22 to P25 per kilo.

Bunye also said the plan to increase the price of NFA rice is still being studied. He said the NFA, which has invoked losses as reason for the plan, will consult with different stakeholders before making a decision.

Government subsidy for rice reaches about P50 billion a year.

Bunye also expressed confidence the Philippines would not experience "rice situation" in other countries like Haiti, Egypt and Uzbekistan, where riots have already erupted because of high prices and limited supply.

"Filipinos are much more calm," he said.

NFA spokesman Rex Estoperez said the factors being considered by the agency for the increase are timing, purchasing capability of consumers, and price sustainability.

Jessup Navarro, NFA administrator, asked the public to stay calm.

"It’s not a supply problem. Actually, it’s a price issue," he said.

He said over-all inventory is good for 55 days based on the daily average requirement of 33,000 metric tons. The summer crop harvest would help to stabilize the (rice) prices.

Navarro said increasing the price of NFA rice is "not an easy decision to make, but a necessary one."

"We are doing a balancing act here, try to consider the affordability of consumers and the welfare of the farmers," he said.

Agriculture Secretary Arthur Yap said: "We have enough supply of rice in the country. It’s a price crisis, not rice crisis."

Makati Mayor and United Opposition (UNO) president Jejomar Binay asked the Arroyo administration to declare a state of calamity in the country so local government units can use their calamity funds to purchase and distribute rice to the poor.

Binay said that contrary to pronouncements by Malacañang officials that the rice and food situation are under control, the people continue to be burdened by unreasonably high rice prices.

He warned of "serious consequences when hunger starts to drive more people to resort to violent or unlawful means to survive."

Justice Secretary Raul Gonzalez said if rice hoarding will not stop, he will propose the implementation of a 46-year-old law that would empower the President to declare a rice and corn emergency.

Gonzalez said that under R.A. 3452, enacted in 1962, the President is authorized to declare a rice and corn emergency and control the cereals.

During such emergency period, the NFA, upon the direction of the President, may seize and confiscate hoarded rice and corn upon payment of the prevailing consumer price.

Speaker Prospero Nograles said it is "bad timing" for the NFA to even float the idea of increasing the price of NFA rice at a time when the price of commercial varieties and most food products "are getting out of control."

"Precisely, that’s why there is the NFA rice which should serve as a buffer for the people to have access to the staple food," he said,

The Alliance of Progressive Labor said increasing the price of NFA rice is another burden for the working class who are already reeling from unemployment, lower wages, and high oil prices. – With Randy Nobleza, Evangeline de Vera, Wendell Vigilia and Gerard Naval