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    WB hit for discouraging
    subsidies to rice farmers
     
    By Butch Fernandez
    Reporter
     

    SENATE Minority Leader Aquilino Pimentel Jr. denounced a World Bank guideline discouraging the grant of state subsidies to rice farmers while urging the government to reduce the tariff on imported rice.

    In a statement, Pimentel argued that if farmers in Japan and other neighboring Asian countries, as well as the United States and Europe, get substantial subsidies from their respective governments to boost food production, “there is no reason why Filipino farmers should not receive a similar aid from their government given the rising cost of production for rice, corn, sugar and other crops.”

    The senator demanded that the World Bank should explain “why it says it is ‘ruinous’ for our government to subsidize our rice farmers, but not when Japan, Thailand, the US and other countries subsidize their farmers.”

    Pimentel pointed out that soaring prices of fertilizer, high-yielding palay varieties and other farm inputs, as well as crop losses caused by natural calamities and pest infestation, have made it increasingly difficult for many local farmers to produce rice and earn reasonable profit from this undertaking.

    In fact, he noted that it is common to see subsistence farmers unable to pay irrigation fees to the government or to repay their loans to usurers or banks due to mounting production costs, poor harvest or crop failures.

    “Without government incentives, farmers could not be motivated to produce more rice and take advantage of the benefits of modern farm technology in the form of high-yielding palay seedlings,” he said.

    “Worse, they may be compelled to convert their rice field for planting other crops which are less costly to produce but yield more income.”

    According to Pimentel, it is a fact that state subsidies to farmers have greatly helped the US and other countries attain high production in rice, wheat and other agricultural products that they export to other countries.

    Citing the ever-increasing volumes of rice being imported by the Philippines (about 2 million metric tons for 2008 alone), he explained that “our government is, in effect, subsidizing the farmers of the exporting countries at the expense of the Filipino farmers.”

    Pimentel said the country should learn from the negative effects of import liberalization, which saw Filipino farmers reeling from the impact of the unrestricted inflow of foreign farm products over the past several years.

    He complained that the situation was made worse by the government’s failure to fulfill its commitment to release sufficient funds for safety nets to enable them to boost their productivity and survive the stiff competition in the global market.

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