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  • Government eyes move
    if high prices persist
     
    By Mia M. Gonzalez 
    Reporter

    THE Philippines may opt to boost local rice production to minimize importation needs if high rice prices persist longer than expected, Malacañang said Monday.

    Press Secretary Ignacio Bunye also said in a news briefing that President Arroyo will initiate meetings with neighboring countries that are “similarly situated in terms of rice supply” to map out collective measures to address the problem now and in the future.

    Bunye said the President, in an interview on Sunday with the Wall Street Journal, had said that “if the current situation of high rice prices in the world market persists, it would make sense for the Philippines to produce more. If we produce more, then I believe the role of the NFA [National Food Authority] would somehow change. But that’s talking in the long term.”

    Mrs. Arroyo was asked whether she foresees any changes in the role of the NFA in the country’s rice-procurement program.

    Bunye explained that an increased rice production in the Philippines would lessen importation, and would correspondingly minimize the role of the NFA in rice supply.

    He said that in the short term, the goal of the Arroyo administration is to “put food on the table,” in which case the NFA “would definitely play a very important role.” The NFA is mandated to ensure food security and stable rice supply and price in the country.

    “So we have to distinguish between long-term and short-term [moves]....In the long term, if the [high] prices continue, then we’ll have to produce more, and if there is more local production, somehow the role of NFA would change,” Bunye said.

    He said the President indicated her optimism that world rice prices may soften in the second half of the year, as predicted by international analysts, to be complemented by the good rice yields in the Philippines to date.

    “The President quoted some international analysts [as saying] that the price of rice might soften during the second semester and the reason for that is there is talk of removing restrictions on exports. And as far as the Philippines is concerned, there is every indication that our harvest has been good and this would somehow temper the effects of this high price in the world market,” Bunye said.

    Asked whether Mrs. Arroyo will consider moving toward self sufficiency in rice production if rice prices continue to soar after the second semester of the year, Bunye said: “Let’s just say, to quote the President, that what happened is a global wake-up call and she would like to work with other governments in the region so that what happened now could be averted next time around.”

    Bunye said that President is expected to pursue cooperation on the rice supply situation bilaterally, particularly with “countries that are closer to us.”

    “There are several countries involved here. We’ll touch base with those we could work easily with in the meantime....It’s time for the Philippines to work with other countries that are similarly situated so that individually and collectively, we can avert the recurrence of this situation,” he said, but did not specify the countries to be tapped for cooperation.

    The Philippines is the world’s biggest rice importer.  

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