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THE
trade policies of exporting countries, which place
importance on their own food security first, would place
additional upward pressure on prices, the United States
Department of Agriculture (USDA) warned in its April
report on the grains market.
“The
cutback in exportable supplies has resulted in record
rice prices, as indicated by Thailand and the US. Some
major suppliers have banned or restricted exports in
order to protect domestic supplies and dampen their own
food-price inflation,” said the report “Grains: World
Market and Trade” dated April 9.
The USDA
noted that the partial ban on exports set by Vietnam,
the world’s second-largest supplier, could cut shipments
by at least 20 percent, which would be a million tons
less than the previous year’s 4.5-million-ton exports.
China
placed a tax and quota system on exports while
India
recently imposed an export ban on nonbasmati rice to
replace its minimum export price, which had more than
doubled to $1,000 per ton since October 2007.
Although
Thailand is not yet restricting exports, the USDA noted
it is also faced with tightening domestic supplies and
record prices.
Thailand
and Vietnam are the two major sources of rice for the
Philippines.
Ending
stocks in the
US,
the agency said, are at a 27-year low at a time when
there could be additional foreign demand for US rice
because the weakening dollar could make US commodities
more competitive in the world market.
The
concern over tightening supplies, the USDA noted, is
well reflected in prices as Thai quotes jumped $356 per
ton from last month to $855 per ton freight on board
(FOB), as exportable supplies remain tight.
At the
latest tender offered by the National Food Authority (NFA),
quoted rice prices reached as much as $1,200 per ton.
This prompted the private sector to decide that they are
no longer keen on importing rice even at zero tariff
because it would be impossible to sell such expensive
rice.
The
Department of Agriculture plans to provide an update on
current rice concerns during a roundtable discussion on
food security hosted by the University of the
Philippines-Los Baños.
Dr.
Frisco Malabanan, the national coordinator of the
Ginintuang Masaganang Ani Rice Program, will provide the
participants with a situationer on the roots of the
country’s current rice woes, as well as the ongoing
initiatives being implemented by the government to
guarantee stable supply and prices.
“The
rice situation will be analyzed from various viewpoints:
production technology, production efficiency,
agricultural machinery, natural resources and technology
indicators and markets,” the organizers noted. It was
not clear if the loss of farmlands to developers and the
lack of funds to operate fully several irrigation
systems will be taken up as well. |
