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    Fewer rice plantations
    reduce inventories
     
    By Manuel T. Cayon
    Reporter
     

    DAVAO CITY—Ellen Gomez, 31, is  anxious about rice prices since some reports predict that the grain’s cost may reach more than P40 or P50 a kilo by middle of this year.

    But, for the meantime, she temporarily forgets her anxiety by mixing imported Vietnam rice sold at National Food Authority (NFA) outlets with the 7-tonner variety to make a more palatable cooked mixture.

    “I would mix two kilos of the SP [referring to the NFA rice] with four kilos of the 7-tonner because the taste would pass for a well-milled variety,” Gomez, who has two children, told the BusinessMirror. “It’s 1:2. Well, it could also be 1:1 mixture, but the taste would be better with the Banaybanay 7-tonner variety.”

    Gomez resides in Agdao, the largest slum colony east of downtown Davao, and commutes daily to her workplace as a cashier in one of the city’s more frequented restaurants. The establishment that Gomez works for, like many grilled chicken and seafood restaurants in the area, continues to offer “unlimited rice” to increase sales and strengthen its competitive advantage. 

    But as reports have emphasized the uncertainty of the country’s grains production, both Gomez and the rest of the rice-consuming Filipinos, and the restaurants here, are taking a second look at their family pockets and corporate coffers’ capability to hold on to offering those extra grains for free to diners.

    The NFA already released volumes of sacks of rice to the market to ease the pressure on prices, which already breached the P30-a-kilo level since Monday here.

    Agriculture Secretary Arthur Yap has blamed population increase as one of the triggers of the abnormality in supply of the Filipinos’ main staple crop, which also pushed prices in only a short span this month.

    However, in Mindanao, where the country’s rice bowl, Cotabato, is located, population increase is just one reason of the apparent grain shortage. It’s also the conversion of once rice-growing areas to other crops, which show an erratic, though gradually declining hectareage devoted to growing rice.

    The Soccsksargen growth region, which lumps together the Cotabato provinces (South Cotabato, North Cotabato, or currently known only as Cotabato, Sultan Kudarat, Sarangani and General Santos City) has increased though. Areas in which rice was planted rose to 310,865 hectares compared with 218,330 hectares 12 years ago.

    But since 1999, when areas planted with the grain reached its peak of 336,653 hectares, the total area began to gradually dwindle to 321,506 the following year, 314,000 in 2001 and down to 306,243 hectares in 2003.

    The trend was broken only in 2004, when the area was increased to 325,102, but again, in 2005, the decline continued at 310,865 hectares, figures from the Bureau of Agricultural Statistics (BAS) show.

    The Autonomous Region in Muslim Mindanao reached 199,735 hectares in 2005, mainly contributed by Maguindanao, the province that was once the bigger province of the Cotabato river basin region, and Lanao del Sur.

    It’s improvement was erratic though, from 151,300 in 1994 to 163,209 in 1996, falling down to 119,424 hectares in 1998, climbing steeply to 153,935 hectares the following year, only to decline the following year, and then steadily increasing in 2005.

    The next top rice-producing region, the Zamboanga peninsula, showed improvement though, from 151,574 hectares in 2000 to a gradually increasing trend reaching 158,585 hectares in 2005.

    Northern Mindanao, the fourth-largest area to contribute to the country’s rice production, dipped consistently.

    In 1995 it had 139,611 hectares, falling to 127,417 hectares in 1997, then shooting up to 146,207 hectares in 2001, but reducing its hectareage to 124,871 in 2005.

    Meanwhile, with 116,766 hectares allotted for rice, Caraga improved its performance, only to be pulled down by the Davao region, where the bulk of rice and coconut plantations were being converted to banana, vegetables and other crops, including mangoes.

    Dwindling rice plantations has troubled the Department of Agriculture that Undersecretary Jesus Emmanuel Paras aired the department’s concern in the Davao City leg of the Philippine Economic Briefing held early this month at the Marco Polo Hotel here.

    “We are very alarmed with the situation where our rice production areas, including the irrigated lands, are being converted to banana plantations,” he told the participants to the briefing, organized by the economic team of President Arroyo and the Bangko Sentral ng Pilipinas.

    The BAS office here said the dwindling hectareage was mainly ascribed to the conversion of crops to banana and vegetable “where the return was more inviting and tempting to resist,” William Barangan, Davao City provincial agricultural statistics officer, told the BusinessMirror.

    A BAS Rice and Corn Situation and Outlook for January 2008 said that the reduction of rice production in the Davao region was 10.3 percent lower in 2007, the lowest in the five-year period.

    “The output decline could be attributed to the 10.6-percent contraction in harvest areas brought about by farmers shifting their areas to banana, vegetables and other crops,” the document said.

    Davao del Norte, for instance, where plantations of the more than 30 banana companies are found, suffered the steepest decline of its rice farmlands, from 54,910 hectares in 1994, to only 32,371 hectares in 2005.

    The neighboring Compostela Valley, the northern neighbor of Davao del Norte, is the site of the major expansion of banana companies, which still continue to date. Compostela Valley has since showed its strength in banana production, topping the 1.15-million metric ton mark last year. Davao del Norte was second at 1.13 million metric tons.

    Rice lands are expected to be under continued pressure as banana demand would be increased with the addition of powerhouse China and the Middle East coming in big numbers. Davao’s production is being shipped to Japan, South Korea and Hong Kong, the traditional market.

    Barangan also said farmers are shifting to other crops, besides bananas. 

    “In Tugbok and Calinan district in the city, and in Carmen in Davao del Norte, farmers are also finding easy and big income from raising hito [cat fish].”

    He said that the current crisis may have been due to the delayed harvest of rice “because of what they call photoperiodism,” or the lack of adequate sunlight the past month as rain clouds hover and cover most of the sun the whole month. Harvest is expected at the last week of March up to the first week of April, and then again in October.

    “I hope that this would only be about the lack of supply because of the delayed harvest. Let’s just watch this April,” he said.

    Undersecretary Virgilio Leyretana of the Mindanao Economic Council (Medco) told Monday’s regular press conference of the Davao Press Club at SM City that “there is no shortage in supply monitored here in Mindanao.”

    Leyretana said it was “the unscrupulous traders that we are wary about who might take advantage of the increase in the price of rice.  Some traders might hoard rice so it would fetch higher prices.” 

    He declined to comment though, on the declining hectareage of rice farmlands as possible cause of grain shortage. “I do not want to speculate if it is caused by the conversion of rice fields into plantations for cash crops.”

    But  Gomez, the cashier at a local chicken and seafood restaurant, remains hopeful that rice prices would not post undue increases.

    “I hope that this would not be true [that rice price could reach P40].” Earning only P160 daily after deduction from eating her lunch at the restaurant, “this P30-a-kilo price is too much.”

    “I hope the media would show our leaders how we, the poor people, are really suffering from it all,” she said.

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