|
WASHINGTON,
D.C.—The Philippines has started the ball rolling for
countries with excess rice supply to share some of their
bounty with their less fortunate neighbors in
Asia.
Finance
Secretary Margarito Teves said he advanced the proposal
before World Bank president Robert B. Zoellick as
members of the 185-member International Monetary Fund
winded down their annual spring meetings here.
In an
interview, Teves said the World Bank chief expressed
full support for the initiative, seen as an initial step
toward the resolution of restricted rice supply in the
region and elsewhere.
“This
will start discussions on the rice issue in the various
fora like, for example, the Group of 24 and others,
seeking to help find solutions,” he added.
According to Teves, there was recognition of the need
for countries in the region to review existing policy
structures affecting the flow of the staple, given that
some jurisdictions have imposed rather stiff measures
and even outright prohibitions or restrictions on the
exportation of rice.
Several
economists had said it was hard to untie those ad hoc
restrictions, as national leaders have the prerogative
and duty to take steps they consider are in the national
interest, such as ensuring their own citizens’ food
security first before helping out neighbors by selling
food to them.
Still,
Teves told the BusinessMirror that Zoellick committed to
“take the rice issue with the world’s leaders” in later
discussions with them.
Moreover, there was a need for various countries to
address the relative lack of rice supply in order to
help dampen elevated price pressures.
“Addressing rice supply will help dampen inflation,”
Teves said, noting that inflation in Manila escalated to
6.4 percent in March or far more than forecast of only
up to 5.9 percent by the Bangko Sentral ng Pilipinas.
Prices
of rice have risen by more than 40 percent in the past
year, and there has been pressure on the government to
import more from neighbors Vietnam and Thailand, in
order to ease price pressures caused by tight supply.
However, critics have warned the government that with
the current tariffs, the rice in its importation
pipeline will also be costly, forcing the State to throw
in more money to subsidize the staple when selling this
to consumers.
Rice
accounts for 9.36 percent of the country’s consumer
price index, which helps the government keep track of
inflation.
Teves
said that at the discussions on the food price situation
in the just-concluded World Bank/IMF meetings here, it
was also recognized that some countries were stocking on
the staple at levels “far more than what they really
need.”
He said
it might be prudent for countries to review this stance
or rationalize it “and allow for the release of some of
the excess to increase rice supply.”
He
conceded that this will entail some form of cooperation
among countries in Southeast Asia, for example, where
the price of rice has gone up very significantly in
recent months.
The
Philippines produces an estimated 90 percent of its own
rice requirements every year but its rice imports
represent around 7 percent of world production,
according to reports.
Filipino
consumers have had to pay 20 percent to 30 percent more
for the staple sold on retail basis in recent months. |
