Rice shortages heighten political crisis in the Philippines

              

Rice prices have soared to a 34-year high in the Philippines, exacerbating social and political tensions, and creating more problems for the crisis-ridden regime of President Gloria Macapagal Arroyo amid claims that her government had known of the shortages for more than a month.

Globally, stocks of rice and other foods have plummeted, resulting in a steep rise in prices. Rice has been one of the worst hit with prices jumping 50 percent in the two months to the end of March and at least doubling since 2004. An Associated Press article late last month pointed to concerns that “prices could rise a further 40 percent in coming months”.

An unprecedented cold snap as well as pests and diseases affecting crops in China and South East Asia have had an immediate impact on rice availability, as has recent flooding in the Philippines and Vietnam. Increasing urbanisation, changing land use and shifting patterns of agriculture, including the growing of crops for bio-fuels, are among the underlying reasons for shortages of staples such as rice. Rising prices also have their own dynamic, leading to speculation and the hoarding of rice supplies in the hope of future windfall profits.

Some of the largest rice exporters have limited sales. Vietnam has recently decided to reduce exports by almost a quarter and Cambodia has announced a two-month ban on rice exports. The world’s leading exporter, Thailand, has also begun to control foreign rice sales. India has raised the minimum export price by more than 50 percent and China has begun to import rice.

As the world’s largest importer of rice, the Philippines has been among the hardest hit. Rising prices for rice, along with other food items and oil, led to a sharp jump in the official inflation rate from 2.6 percent in March 2007 to 6.4 percent in March this year. Radio Australia reported late last month that “rice prices in Manila have soared to as high as $1.15 a kilo from as low as 50 cents a kilo a week ago.”

Accusations of incompetence in dealing with the shortages have compounded the political crisis facing President Arroyo. She is already facing allegations of corruption over a national broadband deal and of betraying national interests by signing a deal with Vietnam and China to conduct a joint survey of the disputed Spratly Islands. Her approval rating has slumped to a record low of 23 percent.

Initially, Arroyo tried to deny there was any rice crisis at all, saying it was “a physical phenomenon where people line up on the streets to buy rice. Do you see lines today?”

The leftist peasant organisation, Kilusang Magbubukid ng Pilipinas (KMP), claimed last month, that two secret internal government memoranda dated February 11 and February 27 demonstrate that the Arroyo administration knew of the impending rice crisis since February.

One of the reports cited in an ABS-CBN article included a request for the National Food Authority (NFA) to import an additional 500,000 tonnes of rice. “The registered growth in palay [paddy rice] production is not enough to meet the combined effect of an increase in demand and the need to maintain the required buffer stock by July 1, the start of the traditional lean supply months of July to September of each year,” it stated.

KMP chairman Rafael Mariano told ABS CBN: “As can be seen from the memos Gloria and her regime know that a rice crisis is imminent but it is still fooling the people because she is afraid of her political future, but by doing so she is toying with the lives of at least 68 million Filipinos who earn less than $2 a day.”

Desperate to minimise the political impact, Arroyo has scrambled to secure supplies and to find scapegoats to deflect attention from her administration. Her officials have immediately blamed rice hoarders and unscrupulous traders who have been repackaging low-quality, government-subsidised rice to sell as high quality commercial rice at inflated prices.

Lower house speaker Prospero Nograles declared on April 4 that “smuggling and hoarding by rice cartels should be curbed effectively” and called for tougher legal penalties for illegal price manipulation under the country’s Price Act. Currently penalties of 5 to 15 years prison and fines of 5,000 to 2 million pesos can be imposed. Raids by the NFA and National Bureau of Investigation have taken place across the country over the past week.

Cebu City councillor Sylvan Jakosalem has warned, however, that such actions may be counterproductive. After meeting with rice traders last Friday, Jakosalem pointed out that wholesalers stock up at this time of the year and usually hold back stock to tide them over the lean months from July to August. Without a distinction between stocking and hoarding, traders are reluctant to buy large stocks for fear of prosecution.

Arroyo has also frantically sought to find sources of rice imports, recently securing an agreement from Vietnam to supply around 1.5 million tonnes. In all, the Philippines plans to import around 2.2 million tonnes including from Thailand and the United States. Most imports are currently handled by the NFA, which then provides subsidised rice for the local market. Arroyo called on the finance ministry to draw up a plan to cut tariffs and has announced a doubling of import quotas to encourage private importers—proposals that has already been criticised by local farmers.

Arroyo has also called for cuts to consumption. Agriculture Secretary Arthur Yap announced a plan late last month to encourage restaurants to serve less rice. “We are inviting them to participate in the rice conservation program,” he said. “I’m asking fast food-restaurants to give their customer an option to order a half cup of rice.”

Opposition senator Aquilino Pimentel bitingly remarked: “It reminds me of Marie Antoinette, who shortly before the French Revolution famously said if people had no bread to eat, they should eat cake.”

Millions of working people face food insecurity and hunger. A World Bank update this month found that the proportion of the population living below the poverty line rose between 2003 and 2006 from 30 percent to 32.9 percent despite higher levels of growth. Falling real incomes, compounded by cutbacks in social spending, were the main factors. Other estimates put the poverty rates as high as 40 percent of the population of more than 90 million people.

Rodolfo de Lima, a parking lot attendant, told the Associated Press that if rice prices continued to rise “my family will go hungry.” He added: “If your family misses a meal you really don’t know what you can do....” Another worker Domingo Casarte said: “When people get trapped, I can’t say what they will do.”

Commenting in the Philippine Daily Inquirer, Senator Loren Legarda warned: “Rice is an extremely sensitive political commodity. There is no question a surge in the staple’s price is bound to spur social unrest and political instability.” Already under siege over other scandals, Arroyo is desperately implementing stopgap measures to try to avert an eruption of popular anger.

NFA belies rice shortage amid rising prices

                                                

The National Food Authority has reiterated that the country’s rice supply is sufficient given its current industry inventory of 2,113,811 metric tons of rice that should be enough for the next 64 days.

Market price of this basic commodity, however, went up to P45 per kilo much to the chagrin of daily minimum wage earners.

Even provinces in Central Luzon, dubbed as the “Rice Granary of the Philippines”, are experiencing higher prices for basic types of rice. In Bulacan, the cheapest rice variety costs P32 per kilo. Other types of rice like Sinandomeng and Angelica cost P34 and P36 per kilo, respectively.

Middle-quality rice such as long grain and Wagwag sell for P40 to P42 per kilo, while high-quality rice like Dinorado costs P45.

“Para saming mga arawan ang bayad, nahihirapan kami sa pagbili ng bigas, hindi pa kasama yung ulam at gastos sa bahay [For us who earn minimum daily wage, we find it hard to afford rice on top of other food items and household expenses],” housewife Tessy Clara, a mother of two, told Manila Bulletin Online.

Department of Agriculture Sec. Proceso Alcala revealed on Wednesday that there are some groups “manipulating” the price supply. However, no names or groups have been identified.

An open letter by NFA Administrator Orlan A. Calayag to employees has belied reports of rice shortage. He said that aside from existing industry inventory, NFA also has 652,801 metric tons of reserve supply good for 18 days consumption.

“There is no cause for worry as far as rice supply is concerned because as early as mid-August some farmers have started harvesting palay,” he said.

Pres. Benigno Aquino III, during his 2013 State of the Nation Address last August 21, flaunted that the country has achieved the “strengthening” of the agricultural sector and has even gone to exporting premium quality rice.

“We have truly come so far from those days when it was said that we could not even feed ourselves,” Aquino said

Analyzing The Rice Crisis in the Philippines

THE SIGNIFICANCE OF RICE IN THE PHILIPPINE SETTING

Rice is the staple food of the Filipinos. It is a politically sensitive commodity with which supply disruption causes people distress. The Philippines consumes about 33,000 tons of rice daily. Approximately, 80% of the total population spends almost 1/4 of their income on rice alone. This shows that a slight increase in the price of this commodity will greatly affect the standard of living for most Filipinos.

                                         

Currently, the world is experiencing a global food crisis. There has been an increase in demand for rice all over the world especially in China, Africa, the Middle East and India. To offset the increase in price, the top exporting countries of rice have reduced their exports significantly to keep domestic prices low and to counter inflation. The Philippines, being the world’s top importer of rice, is directly affected by the global crisis. Every year, the Philippines imports around 15% of its rice supply  (equivalent to 2.2 Million tons of rice), most of which comes from Vietnam and Thailand. But why does an agricultural nation like the Philippines import rice?

THE REASONS BEHIND RICE CRISIS

In an article entitled Food Security and Rice? Dr. Onofre Corpuz provides us some background on shortages and crises regarding rice. Based on this article, the Philippines has been importing rice since the Spanish era. This article by Dr. Cruz seems to tell us that our notion that the Philippines is a top exporter of rice is incorrect. Also, the reasons for the rice crisis before are more or less similar to what we are already encountering today. He attributes the recurrent rice shortages to the following: feudal system, cash crops being favored over rice for exports and primitive technology. In addition to these, he also blames the practice of idleness during the Spanish era.

The Philippines has intrinsic disadvantages in the production of rice. First, the country lacks water sources for its cultivation. Unlike our neighboring countries, their agricultural lands are situated near flowing bodies of water. Furthermore, the Philippine agricultural lands are scattered all over the country on different islands. This means that transportation, cultivation, maintenance and production are quite expensive because economies of scale hardly arises from a disjointed production process.

Another reason for the rice crisis is government negligence. The government could improve market outcomes. However, with wrong intervention and mishandling, the matter could become even worse. This negligence is evident in the high-cost of domestic rice production compared to out neighboring countries. Our country has more or less 4 million hectares utilized for rice production. We cultivate about 3 metric tons of rice per hectare. According to the PHILRICE, this figure is insignificant compared to the country’s production potential which is 12 metric tons per hectares.

A study done in 1999 by the International Rice Research Institute (IRRI), indicates that the cost of rice production in the Philippines is almost 50% more than that of our neighboring exporting countries’, Thailand and Vietnam. The annual cost of producing rice for Vietnam and Thailand is $683 per hectare and $636 per hectare, respectively. While in the Philippines, our cost of production is $888 per hectare. Based on this given data, the principle of comparative advantage begins to set in. We could conclude that if production of rice is cheaper in neighboring countries, then importation of rice is indeed an economically wise decision. However, an implication of such dependence on rice importation makes us very susceptible to global crises like the one we are currently experiencing. The reason why no serious damage (relative to other countries involved) is felt by the Filipinos is that most of our daily consumption is being produced inside the country. A much seemingly feasible action that the government must undertake, is to make the production of rice less costly by enhancing its production process.

Aside from its failure to lower the cost of production, another sign of government negligence comes into mind when we talk about the failure of the NFA to procure large amounts of rice. The primary function of the NFA is to ensure food security and stable rice prices and supply through diverse strategies such as the procurement of rice supplies, thereby gaining significant influence over the market price. From the peak of its procurement in 1979 which is 10% of the total rice supply, it now dropped to less than 5% of the total rice supply. A number of studies have shown that in order for the NFA to effectively influence the market price of rice, it must procure 15% more of the total rice supply.

Another government failure is the ill-action of subsidizing bio-fuel crops. The subsidized bio-fuel program of most countries in the world, including the Philippines, has lead to a decrease in agricultural land allotted for wheat, rice and other agricultural crops.

To add to the long list of government blunders is its failure to impede conversion of arable land to industrial centers, parks and offices. Just recently before the rice crisis issue, there was this problem regarding the Sumilao farmers’ agricultural land being converted into industrial center by a private corporation. Even though the economic gains we get from these sectors are substantial, the arable lands suitable for agriculture is very scarce. Moreover, there are idle lands in the country that are not being developed.

And making matters even worse is government corruption, which has already seeped through the system. One study indicates that a reduction of one bag of fertilizer per hectare leads to a 10% reduction in the grain yield. The money, which was used by the current administration in funding for their electoral campaign in 2004,  was suspected to be intended for the agricultural sector’s budget.

Aside from the aforementioned, there are factors that contribute to the current rice crisis which are completely out of the government’s discretion. First among these, are the skyrocketing crude oil prices in the world market. One notable consequence of this is that it makes fertilizers and other input materials in the production of rice much more expensive. Another is that it also contributes to the increase in the price of rice since transportation is a cost incurred by suppliers.

Besides rising crude oil prices, another factor which contributes to the aggravation of this crisis is global warming. It has been shown in some studies that a 1 degree Celsius increase in temperature in the overall climate leads to 15% less agricultural yield. This poses a much serious problem in the Philippines where agricultural lands lack abundant water sources. Other things to be considered are natural calamities such as flood and drought which also contribute to lesser food crop yield.

Of all the rice shortage causes that are beyond the control of the Philippine government, probably the most detrimental is overpopulation. Ever since, it has been a known fact that the country’s capacity to produce food has struggled to cope with its rate of population growth. The average growth rate during the years 1990-2000 was 2.34% for the population while the increase in rice yield, was around 1.6%. Clearly, if such trends continue, it would be hard for the Philippines to lessen its dependence on rice imports because its production of rice grows at a rate much lower than the rate at which its population is growing.

There is no denying that today, the world is facing a global shortage in rice and other agricultural products such as wheat. This is probably because 2/3 of the world’s population (4 billion people) considers rice as essential to their daily diet. Among the 36 countries named by the United Nations Food and Agriculture Organizations that are experiencing rice shortage, the Philippines is not included. Does this mean that we are not suffering the so-called rice shortage? It seems that it’s a yes: we are not facing the kind of rice shortage that the UNFAO identifies with the 36 countries. This is because, as mentioned earlier in this study, 85% of the country’s rice needs are being produced locally. The other 15% (2.2 Million tons of rice) have already been secured, to be imported from Vietnam in a signed contract between our government and their’s. Therefore, no rice shortage threatens the country. This situation, of course, is only short-term and it cannot be ascertained whether next year, our country would be as fortunate. But a major factor that exaggerates the current crisis, is the hyped reaction of both producers and consumers to this artificial rice shortage. Because the media makes too much of a big deal out of this crisis, consumers tend to panic-buy while producers hoard their supplies. Thus, the interaction of both increase in demand by the consumers and decrease in supply caused by the hoarding of suppliers raise the market price of rice disproportionately.  This is why the price of rice is very high even if there is actually no shortage.

In basic economic courses, shortages could be eliminated by increasing price up to a point where quantity demanded equals quantity supplied. This is exactly why in the Philippine market, the price of rice increases in order to meet its demand.

But why are there long lines in NFA stores if there isn’t any shortage? Aren’t long lines indicative of such? There are long lines in NFA stores because they sell subsidized rice. If a shortage really occurs, one thing the government could do is flood  the market with imported rice. Naturally, the price of rice should go down since supply is augmented. However, this is not what is happening. The government imports rice, which is what they have been doing ever since, and sells it at a much lower price. Therefore, the main problem that the Philippines is really facing is the abrupt price increase in rice, not a shortage of supply, which is caused by the interplay of all the factors mentioned earlier. Thus, there is no point for either the consumers or the producers to deviate from their usual economic activities. The media can also contribute by not overstating the issue.

THE COMPLICATIONS OF RICE CRISIS

After analyzing the probable causes of the current rice crisis, it might be worthwhile to ask what implications this crisis has on both the consumers and producers. For the Filipino consumers, the implication is quite serious. As mentioned earlier, about 68 million Filipinos expend 24% of their income on rice alone. This huge proportion of rice in the Filipinos’ income makes us incredibly worse off with even a slight increase in the price of rice. The effect of large price increases of rice for the Filipinos is a lower standard of living because the more they spend on rice alone, the less they could afford other necessities of life. Moreover, a bigger share in the consumer’s income could also mean that it takes up a considerable amount in the yearly basket of goods that determines the consumer price index. It follows then that significant increases in the price of rice translate into higher inflation and thus makes general consumer welfare drop. In April 2008, the CPI rose to 8% – one of the highest rates ever reached, even exceeding the BSP’s target of 3-5%. If the crisis is not solved immediately, experts predict long-term inflation for the Philippines.

On the producers’ side, one would expect them rejoicing over large increases in the price of rice. After all, large increases in the price give them greater incentive to produce and earn more. However, this is far from reality. Because they are not the ones that dictate prices, they are at a loosing end here. Their profits do not equate to what the classroom demand and supply mechanism tells us because they sell their yield at prices dictated by traders that, more often than not, take advantage by lowering their buying prices. Asymmetric information and unjust socio-political institutions (the small-scale farmers are usually indebted to these traders) are to be blamed for the farmers’ plight.

SHORT-TERM SOLUTIONS TO THE CRISIS

After the mentioned implications, it would be essential to discuss the feasible solutions to this crisis. In the short-term, the importation of rice from other countries is one proper way to address this problem. Flooding the market with more supply of rice, provided the amount is significant, could influence the market price to some degree. The NFA serves its purpose indirectly through a subsidized system of buying imported rice and selling it cheap. Another short-term solution that is proposed is to lessen the consumption of rice included in the Filipinos’ diet. The government, in accordance to this proposal, could encourage restaurants and fast-food chains to implement the half-cup rice servings for every meal (which is already in effect in many establishments). Also, the government should have a keen eye on unscrupulous hoarders of rice supply, and render their activities unlawful and detrimental to the economy. Furthermore, the consumers are advised to calm down and be rational in dealing with the current crisis. Panic-buying would just worsen the current situation because the shortage crisis which the world is facing, although certainly relevant, is not yet evident in our country.

Producers warn of rice shortage

 

MANILA, Philippines - The country has only 18 days’ supply of rice from the National Food Authority (NFA) and even less stocks for commercial rice, according to a party-list lawmaker.

ABAKADA party-list Rep. Jonathan de la Cruz said Thursday there is an imminent shortage of the staple in the coming weeks in the aftermath of successive storms.

He said he has received numerous reports that the remaining rice stocks of wholesalers, distributors and even dealers are already drying up despite claims by the NFA that the country is nearly rice sufficient.

“I think that we should really look into this. From what I was told by NFA insiders, we only have 18 days in supply stock and worst, we only have around five to six days of good stock rice because the rest are still in palay form,” De la Cruz said in a statement.

He described the situation as very serious because the harvest season is still in October, around two months away.

BAGUIO CITY, Philippines - Three of the country's top 10 rice-producing provinces warned that rice supply may run low as typhoon Santi battered Central Luzon.

The devastation came in the wake of a warning by Sen. Loren Legarda last week of a situation similar to the 1995 rice crisis when indecisive stockpiling on the part of the government and the adverse effects of rogue weather systems had caused havoc on the country's rice supply.

Legarda, chairperson of the Senate Committee on Climate Change, based her observation on the September 10 National Economic Development Authority (NEDA) Sec. Arsenio Balisacan's Memorandum for Presoident Benigno Aquino III, warning of “food security issues” should the government fail to address a projected rice production deficit of as much as 1.4 million metric tons (MT).

However, amid these warnings, Department of Agriculture (DA) Sec. Proceso Alcala had insisted on the agency’s rice self-sufficiency figures, even if these have relied heavily on favorable weather conditions.

Alcala has said that  “because of good weather condition, the country can produce 13.03 million MT of milled rice, exceeding the domestic demand of 11.23 million MT.”

With Santi pummeling Central Luzon, however, Alcala's optimism over the country’s rice produce can no longer hold water as 15,000 hectares of about-to-be-harvested rice fields were damaged in Nueva Ecija. 

                                   

Why Does the Philippines Import Rice:

A Solution to the Rice Shortage

1. Introduction

Research has contributed significantly in achieving food security by increasing the yield potential of rice in irrigated systems, reducing the crop maturity period to close the gaps in the rainfed systems; achieving yield stability by developing resistance against major insects and diseases in the modern high yielding varieties to reduce farmer’s dependence on harmful agrochemicals; to increase efficiency in the use of water, land, labor, and fertilizers.

2. Rice Production in the Philippines

In the Philippines, rice is grown on small family based farms with an average size varying from less than 0.5 to 4.0 ha, hence the ratio is small. The possibility of increasing planting areas is nearly exhausted. Yield increases have begun to slow as well. Added to that, the Philippines population is perhaps the fastest growing in the world. The Philippines has approximately 4.2 million ha of rice lands and produce about 11.2 million Metric Tons of milled rice, sufficient only for 90% of the population. There are atleast five major provinces which produce rice as its major farm crop.

Rice production in the Philippines has been rapidly growing since 1970’s until the early 1980’s when the country achieved self-sufficiency, having a surplus enabling the country to export a small amount.

Going further, a study of farmers' planting methods will show that about half of the country's rice lands are still planted with the old rice varieties that produce only about 2.75 MT/hectare. The Philippines has so-called "Certified" and "Hybrid" seeds that yield 4.7 and 6.5 MT/hectare, respectively. The country's supplier of hybrid seeds even claim that the actual average yield of his seeds is actually higher (8~10 MT/hectare) and there are even instances of exceptionally high yields that are reported by some farmers.

According to the latest figures released by the Philippine Bureau of Agricultural Statistics (BAS), the production of unmilled rice (palay) in the country have risen by 5.13 % to reach 3.94 million MT in the first quarter of the year on increased irrigation and seed supplies.

3. Rice Consumption in the Philippines

Rice is the staple food in the Philippines, more important to the economy and to the people at a lower income levels, hence an important intervention point for promotion of agricultural development and alleviation of poverty. Rice is what many farmers grow, but it is also what nearly all consumers eat. In many cases, farmers have more flexibility to switch crops than consumers (especially poor ones) do to switch their staple food. Rice is considered a socially- and politically-sensitive commodity, and securing supply at whatever cost is paramount. Rice is such an integral part of history and culture in the Philippines for many Filipinos.

Noticeably, consumption increased from 2003 which is only 26,000 tonnes comparing now with the national daily consumption of the grain at 33,000 tonnes,

accounting for 20 percent of the daily household budget, on an average, with each Filipino eating 115 kilograms, or more than two sacks a year. Apart from being the main source of carbohydrates, rice creates what anthropologists refer to as "the physiological sensation of satiety". Rice is eaten by millions of poor consumers and grown by millions of poor farmers in the Philippines, and to ignore fairness and equity would strip the analysis of much of its value. For most Filipinos, no meal is complete without rice (David C. Dawe, et al, 2005). At this point, it produces only 90% of the rice demand and imports the remaining quantity from neighboring countries.

Some 68 million Filipinos live on less than $2 a day, according to the National Statistics Office 2006 survey. Rice purchases make up 12 to 20 percent of their total food expenditures.

4. Prices of Rice in the Philippines

Towards the later part of 1986, rice prices begun to increase until the present time. In the 1980’s, rice prices in Philippines and Thailand are similar but since then prices have rapidly increased in the Philippines.

Figure 1 Farm prices for rice, 1980-2005 Figure 2 Wholesale rice prices in Philippines

(Source: IRRI, 2005) and Thailand, 1980-2005

(Source: IRRI, 2005)

5. Imports in the Philippines

Once self-sufficient in rice, the Philippines is listed by the US Department of Agriculture as the world's top importer of milled rice for 2007, ahead of Nigeria, Indonesia and Bangladesh. Over the past 20 years or so, the country lost nearly half of its irrigated land to rapid urban development.

The shortage in the rice production of the Philippines has been augmented by imports from other Southeast Asian countries, particularly Thailand and Vietnam. The Philippines imported no milled rice from the U.S. in 2007, according to a USDA Foreign agricultural Service report in February (BBC Southeast Asia).The Philippines is the world's biggest rice importer, purchasing between 1 million to 2 million MT each year, mainly from Thailand and Vietnam. This volume is equivalent to 10 % of the Philippines' total rice consumption.

Figure 3 Rice Importing Countries 2003-2008

Source: FAO, Agriculture Database, USDA FAS, 2009

6. Solutions to the Rice Shortage

Many reasons have contributed to the shortage of rice but the country after withdrawing from the market due to ample domestic supplies and a government-imposed import ban during the main harvest period, Indonesia is projected to return as the number one importer in 2005. The Philippines, however, will see a substantial drop in imports—about 70 percent—resulting from bumper production and ample stocks as the government hopes to promote self-sufficiency through hybrid rice production.

Deeper than the reason mentioned above to meet demand, some possible solution is to change diet by shifting from rice as staple food to other food stuffs like noodles, sweet potato, corn or other foodstuffs as substitute to the sole rice as main meal. What is needed is to practice feeding on other alternatives of rice. Kids and youths of today must be trained in such a way not to fully depend on rice, instead to plant some vegetables and other crops which could be beneficial to every member in the family. Produce which could supply sufficient nutrition or vitamins to everyone. At same time, educate consumers on the advantages of consuming less amount of rice to the physical condition or one’s health (eat more fruits and vegetables than rice).

7. Conclusion

Based from the above situations and conditions, the challenge today is how will we be of help to the crisis in our own ways? Many answers and opinions may arise from each individual, but one thing made me encouraged that, even we, the younger generation (youth of today) can take part in creating solutions to answer the call on global crisis. Small potatoes as we are, can also play a role in meeting the world’s future needs by: 1. creating in us awareness and consciousness of the crisis experienced in the present time and how to respond for the future; 2. bringing us into a common vision for

the future

Rice prices up; kickback probe set

As you see there have been speculations on possible rice shortage in the Philippines, what do you think is the 'liberal' solution to the problem? Inquirer heralds the end of the decade cheap food as price escalates on its 1 April 2008 edition. Is the solution greater cross-country interdependence on Rice supply, particularly on Asia, or should the Philippines pump more money on research and development for its agricultural producation? Where lies the root of the problem?

MANILA, Philippines - Rice prices are going up, rising by P2 per kilo in public markets in Bulacan and by P3 to P4 per kilo in Pampanga, amid reports that cartels are creating an artificial rice shortage

At the House of Representatives, lawmakers are set to investigate an alleged P457-million rice import kickback involving officials of the National Food Authority (NFA) and the Department of Agriculture (DA).

NFA spokesman Rex Estoperez said yesterday the agency welcomes any investigation “as long as it is not in aid of persecution.”

“We have the data and records to support our claims. There is no such thing as bloating the figure of our rice stocks,” Estoperez said.

Farmers in Bulacan called on the NFA and other government agencies to go after rice cartels causing the artificial shortage of rice.

Melencio Domingo, Malolos City Agriculture and Fisheries Council head, said some unscrupulous businessmen are hoarding rice and causing the artificial shortage.