BY JP LOPEZ

SEN. Mar Roxas yesterday rebuked government for claiming there is no rice shortage amid soaring prices of the grain to a 34-year high.

There is a rice crisis, said Roxas, chairman of the Senate committee on trade and commerce.

"Economics 101 yan. Tataas ang presyo kung mahigpit ang supply," he said.

Prices of commercial rice range from P25 to more than P30 a kilo. Last month, commercial rice was sold at P24 to P30 a kilo. The National Food Authority sells rice at P18.25 a kilo.

Roxas said government is in a denial mode.

"Mrs. President, be a force for good by getting real. Magpakatotoo tayo. Mas mabuting sabihin na 'ito ang problema at solusyon' kaysa sabihin na wala tayong problema pero tataas ang presyo ng bigas at iba pang bilihin," he said.

President Arroyo last week said there is no rice shortage but warned of a further rise in prices.

This is a contradictory statement, Roxas said. "How can this be? If there is no shortage, why will prices go up? Is it now the policy of government to make retail prices go up? Is the government now admitting that there is hoarding and manipulation and that it is helpless?"

Roxas said such contradictory statements cut government's credibility and reduce its ability to marshal resources, including voluntary civic action, to combat the shortage.

Sen. Loren Legarda said a rice crisis would be "politically explosive."

"Rice is an extremely sensitive political commodity. There is no question a big surge in the staple's price is bound to spur social unrest and political instability," said Legarda, chairwoman of the Senate economic affairs committee.

She said the only way for the country to cope with the impending rice scarcity is self-reliance which she said is "perfectly achievable."

"Strong local production is the best remedy for any menacing deficiency. Ample supply is the surest way for us to ward off higher rice prices as well as broader consumer price increases that may be associated with rice price inflation," she said.

Legarda and minority leader Aquilino Pimentel Jr. proposed that over the next 24 to 36 months, government use two multibillion-peso funds entirely, if not almost exclusively, for projects that will immediately advance rice production.

The Agriculture and Fisheries Modernization Program has an annual allotment of P17 billion, and the Agricultural Competitiveness Enhancement Fund had a cash balance of P6 billion as of December 2007.

"These funds can be tapped to enable rice farmers to achieve greater productivity via exceptionally potent seeds, greatly improved irrigation, or with adequate water-impounding structures and other drought-mitigating measures," Legarda said.

The funds can also be used to build up post-harvest facilities to curb extensive losses due to inefficient rice processing, particularly in the drying, milling and storage stages, she also said.

Legarda said the country could "suffer considerably" if it remains a rice importer and rice prices double or triple due to severe shortages "just like what is happening to us now as a result of the surge in oil prices."

Pimentel said the Philippines' heavy dependence on rice imports belies the administration's claim that its much-ballyhooed "Ginintuang Ani" rice sufficiency program is reaping fruitful results.

This year alone, the government is importing 2.1 million metric tons of rice from Thailand, Vietnam and other countries. The agriculture department targets rice production to reach 17.33 million metric tons, equivalent to a national sufficiency level of 92 percent.

Pimentel noted that local farmers are always complaining they are being ignored by the NFA in its rice procurement in favor of imports that benefit only the farmers from rice-exporting countries.

"The authorities find it more convenient to buy rice from other countries. Is it because they stand to gain a lot of money from this scheme?" Pimentel said.

Pimentel said it is about time government rethink its rice procurement policy in the light of the tight supply and soaring prices in the world market. From $295 per metric ton last year, the price of rice has shot up to more than $500 per MT.

Malacañang said the opposition and other critics should instead help government in ensuring that the public would have access to enough supply of rice.

"The problem (rice supply) is something that should be solved by all. We only have one ship of state. If that ship has holes, we should all help to plug them instead of creating more holes," said Cerge Remonde, chief of the presidential management staff.

Press Secretary Ignacio Bunye said the President is very much concerned over the runaway prices of rice and even oil in the world market which is why "her economic team tracks its impact every day."

"The good news is that we have the diversification of our economy and solid economic fundamentals to help us weather this current global storm," he said.

Arroyo distributed rice and other food supplies during the Holy Week "Serbisyo Caravan" in Pangasinan, Abra, Benguet, La Union and Baguio City