BY REGINA BENGCO

PRESIDENT Arroyo yesterday said the media and political opponents of various governments fanned the global panic and hysteria on rice shortage.

Arroyo made the pronouncement in her speech before the Soroptimist International of the Philippine region in Malacañang’s Rizal Hall.

Some sectors have blamed the Philippines’ rice auctions and continuous importations for contributing to the skyrocketing global price of the staple.

The Philippines is the world’s largest rice importer.

But Arroyo attributed the soaring price of rice to "a combination of factors in the whole world" like spiraling petroleum costs, increased demand from China and India, negative climatic conditions, reduced investments in agricultural productivity, growing urbanization, and the diversion of agricultural land to bio-fuels to reduce climate change.

She said it is also a "typical reaction" for the exporting countries to "husband their own stocks" due to the rising price of rice.

She said Thailand, the world largest rice exporter, and Vietnam are selling their rice locally at higher prices compared to the Philippines to "contain their own inflationary tendencies."

On the other hand, she said, importing countries try to shore up their stocks – just like the traders, importers and even families.

"All of these lead to a shortage which has been further exacerbated all over the world by panic situations and hysteria created by the media and political opponents in various countries," she said.

She said if some parties would not be able to buy rice this year, it would be due not to lack of funds but to "sheer unavailability of the rice."

"Traditional relationships are a key element as sellers are forced to choose between hordes of willing buyers with open wallets. So buyers who bought early are the only ones with rice. Only those who come to the party early leave with party favors. Thank goodness the Philippines is one of them," she added.

Arroyo said the Philippines was an "early arrival" in the party because agriculture and National Food Authority officials saw the shortage coming and worked to head it off before it hit. She said the country invested heavily in agricultural production measures and new strains like the hybrid rice.

She said government is ensuring rice distribution to those who need it most by tapping churches and religious organizations, and schools once classes start in June. She also said government is cracking down on price gougers and those who exploit the situation.

To remedy the supply problem, Arroyo said food production must be increased and food delivery improved. She said the country’s agricultural modernization program has enabled rice production to rise more than the population growth rate of 2.04 percent.