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  • Officials dispute ‘riots’ scenario;
    more rice arrives from Vietnam

    THE food supply situation in the Philippines would not deteriorate to the point of mass starvation and social unrest, as the government has been moving to protect the country’s food security, Palace officials said Monday.

    Deputy Presidential Spokesperson Lorelei Fajardo was responding to the statement of International Monetary Fund (IMF) managing director Dominique Strauss Kahn that rising food prices in countries like the Philippines could lead to social unrest.

    Fajardo said that while the IMF warning is a “cause for serious concern,” it would be best if such sentiments are viewed with caution, apparently referring to insinuations that the Philippines, like Haiti and Egypt, is on the brink of social unrest not only because of rising food prices but also due to alleged shortages.

    The inclusion of the Philippines in the list of countries with potential food-lack-induced unrest was apparently triggered by photos of rice queues since the state’s National Food Authority (NFA) started flooding the market with cheaper rice to give people some respite from high rice prices.

    The queues for lower-priced rice could create the impression of a rice supply crisis—even when, in fact, there is none, said Jaime Juan, NFA manager in Zambales, on Monday, as another shipment of rice from Vietnam was unloaded at Subic over the weekend.

    Juan, who supervised the unloading of 395,000 bags of Vietnamese rice from the bulk carrier MV Morning Star, said there is enough supply of commercial rice in the country.

    “It’s just that the focus right now is on the [commercial] price, which is higher compared with NFA rice,” he said.

    Juan explained that the NFA, which imports rice mainly from Thailand and Vietnam, maintains its retail price at P18.25 per kilo, the release price approved by the government.

    “There is really no rice supply crisis,” Juan said. “If you go to the market, you can see that there is plenty of commercial rice available. But since the NFA rice is cheap, it is only natural that people would flock to the NFA stalls,” he added.

    According to Juan, the NFA needs to import at least 2.1 million metric tons (MMT) of rice this year in order to augment the country’s supply, even as total rice production this year is expected to reach 18.5 MMT from last year’s 16.24 MMT.

    This year’s projected importation is 300,000 metric tons more than the 1.8 MMT recorded in 2007.

    To date, Juan said the NFA has imported 1.2 MMT, while the remaining 900,000 to be sourced from other rice-producing countries have been scheduled for bidding.

    Besides Subic, imported rice is also being offloaded in the ports of Manila, Cebu and Davao.

    Aside from MV Morning Star, two other ships were scheduled over the weekend to bring in rice from Vietnam. These were MV Saigon 5, with additional 300,000 bags, and MV Harpoon with 120,000 bags.

    In related developments, Senate President Manuel Villar Jr. opted Monday for a multiyear budget approach for agriculture projects, particularly those that directly affect the food security of the country.

    He explained that in order to have predictability on sources of funds, multiyear budgeting should be applied, for instance, on projects like irrigation systems which take years to finish. “The handicap of single-year funding for project is that it is prone to disruption, endangering the country’s food security.”

    Villar acknowledged, however, that because the Constitution calls for annual appropriations and forbids the legislation of multiyear national budgets, the compromise solution is for the Executive to convey to Congress the three-year financing requirements of agricultural projects.

    “We must have a longer planning horizon because to work around 365-day cycles is too limiting and does not give us much elbow room,” he said.

    Villar prodded Executive officials to submit to Congress a medium-term expenditure framework for the agriculture sector “so we will know in advance what projects must be funded and should be guaranteed.”

    At the House of Representatives, Kabalikat ng Malayang Pilipino (Kampi) Rep. Thomas Dumpit Jr. of La Union pushed a bill to grant President Arroyo emergency powers to immediately and effectively address the rice crisis.

    In House Bill 512, Dumpit said the urgency of the situation requires drastic measures.

    Dumpit cited reports of diversion of the subsidized rice from the NFA to the retail market by unscrupulous traders and hoarding of rice by the powerful rice cartels.

    However, another legislator played down claims that the continuing food problems in the country could lead to riots, describing it as “an alien concept”  that cannot  be imported here.

    Nationalist People’s Coalition Rep. Abraham Mitra of Palawan, chairman of the House Committee on Agriculture and Food, said Filipinos are mature enough not to engage in such scenario.

    “Filipinos are mature enough to know that you can’t cook rice by burning the rice warehouse down. Any farmer will tell you that mayhem has never been a rice production input.  All the shouting will not make rice sprout on the streets,” said Mitra. (M. Gonzalez, B. Fernandez, H. Empeño, F. Marasigan, V. Parce)

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