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    Investing in the Filipino farmer

    It’s really no great honor—in fact it is a crying shame—for an agricultural economy like the Philippines to be known as the world’s biggest rice importer. Yet, it is an indisputable fact. We are the biggest rice importer in the world.

    We bought some 7 percent of the 35 million metric tons (MMT) traded in the world last year, according to the Rice Watch and Action Network.

    We must have earned that dubious distinction when our rice imports surged past the 1.5-MMT mark about two years ago. This year, this “world title” will likely be retained by the Philippines as we import even bigger volumes to fill our requirement.

    Agriculture Secretary Arthur Yap has, in fact, announced that we would need to import at least 2.2 MMT or as much as 2.4 MMT for 2008, the biggest ever in the country’s history.

    It’s a pity that the government has not, until lately, given enough importance to the country’s perennial rice shortage, which has been rapidly worsening over the past 10 years. The government, for a long time, has all but completely ignored the problem; at times, it even withheld or diverted vital budgetary infusions which, meager as they were, would have meant a few more tons of palay for the local granaries.

    In other words, the government has generally been just coasting along, leaving our rice farmers pretty much to their own devices.

    Proof of this is that for the past 30 years, at least, no administration conceived and pursued a comprehensive production plan designed to meet the rice needs of the country’s fast-growing population. Instead of exhausting ways to unlock the potentials of the more than 2 million hectares of land devoted to the local production of rice, every administration—from Cory Aquino to the present—found it more convenient to simply import the rice we failed to produce year after year.

    How the government became so laid -back in its outlook toward the rice problem must have something to do with the fact that for several years, the global supply of rice was plentiful, and the prices were just right. For several years the landed cost of Vietnam rice was cheaper than rice shipped from Tacurong, Sultan Kudarat, in Mindanao to Manila. This must have lulled them into a false sense of security.

    There were even politicians who advocated a major shift from rice to cash crops for export. They were saying the lucrative export proceeds would be more than enough to buy from abroad all the rice Filipinos would ever need.

    That was, more or less, the frame of mind of most of our policymakers. But lately, it has, at last, begun to dawn on us that the rice problem is one that we can no longer take lightly.

    Actually, the export prices of rice have been creeping upward since the beginning of this decade, but as anybody can see, the Philippines wasn’t bothered at all by that trend. The country began noticing something was amiss only in February this year when the prices of rice being quoted by Thailand and Vietnam spiked sharply.

    The International Herald Tribune quoted Kwanchai Gomez, executive director of the Thai Rice Foundation (a research center like the International Rice Research Institute in Los Baños, Laguna), as saying that “nobody has ever seen such a jump in the price of rice, certainly not in my lifetime [68 years], and that’s a long time.”

    The reason for the sudden upsurge in rice prices is a global tightness in the supply of the major food grains, especially rice.

    The world outlook on food, by and large, is ominous. The Arroyo administration has been told that agriculturally, we have a lot of catching up to do, especially in the production of rice and other food grains. The usual alternative of importing our food requirements is no longer an option.

    The facts and figures, as revealed by Albay Gov. Joey Salceda, economic adviser to President Arroyo:

    §          Global prices of corn have gone up by 88 percent since September 2006 and increased by 19 percent since January this year alone;

    §          Rice prices have risen by 54 percent since April 2007 and 24 percent more in January this year; and

    §          World wheat prices increased 149 percent since April 2007.

    As of yesterday, the most inferior Thai rice (25 percent to 30 percent broken) was being quoted at $749 per MT. The better kind, 5 percent broken, $900. Vietnam’s export prices are not significantly lower.

    The problem, however, is that both countries are now limiting exports because of local production problems or to give priority to domestic requirements.

    The current global crisis in food prices and supply has, at last, driven our own government to action. Thus, at the National Food Summit held at the Fontana Convention Center in the Clark Free Port Zone on Friday, President Arroyo announced a package of agricultural initiatives that would cost anywhere between P45 billion to P55 billion a year.

    That’s exactly what we need to do, according to Dr. Emil Javier, president of the National Academy of Science and Technology. Javier, who was once chancellor of the University of the Philippines in Los Baños, firmly believes that if the government wants the country’s agriculture to realize its full productive potential and, at the same time, eliminate rural poverty, it must “invest in Filipino farmers.”

    In the manifesto he delivered during the food summit, he advocated the mobilization of an army of extension workers in the fourth- and fifth-class municipalities in the country to help the farm folk modernize their farming methods.

    Dr. Javier, who had contributed to the spectacular success of the Masagana 99 rice program in 1976, apparently believes that a strong extension component can breathe new life to the country’s farm sector.

    The government should now follow through on its newfound direction to invest in the nation’s farmers. Let’s hope it follows this path with conviction and determination. Having all the God-given resources, this country has no business going hungry.  

    Omerta_bdc@yahoo.com

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