|
IN the
past few months riots and protests over soaring food
prices have broken out in Europe, Asia, Africa and
Central America. In Haiti, the prime minister was ousted
after more than a week of rioting due to rising cost of
rice, beans, cooking oil and other staple foods. The
unrest resulted in several deaths and spread to the
capital
Port-au-Prince, where mobs took over the streets, looted shops and
burned cars.
Back at
home the situation is a lot less volatile (at least for
now), but the gravity of the problem of surging food
costs is still very apparent. You see it almost every
day, on TV and in the newspapers—long queues of our poor
kababayan enduring the sweltering heat for hours
just to buy a few kilos of government rice from
distribution centers. A more sorry sight is people going
home empty-handed because rice stocks have run out.
In
recent weeks the government has cracked down on rice
hoarders and traders who repackage NFA rice and sell it
at a higher price. New distribution schemes were adopted
to ensure that cheap rice gets to the poor families and
out of the hands of accursed rice traders. While these
measures may prevent the situation from deteriorating,
it probably won’t stop prices from further escalating.
Rice-producing countries like
China,
India and Vietnam have imposed limits on their exports
to contain surging domestic prices and ensure their
sufficiency. This results in higher global prices of
rice that hurt rice importers, especially the
Philippines, which has become the world’s biggest
importer of rice. (Such a shame, considering we are an
agricultural country).
The
benchmark price of rice in the world market has tripled
since the start of 2007. So far this year the price has
increased by 120 percent. In the latest government
tender to import rice, the bids offered ranged from $872
to $1,220 per metric ton; in January the average price
was only $474 per ton. A price of $1,000 per ton
translates to about P48 per kilo with zero taxes;
locally, the government is buying palay at P17 per kilo.
So selling rice at P18.25 is not good economics, but
it’s necessary to stave off widespread hunger and
possible violent social unrest. However, prices will
have to be adjusted eventually.
It’s not
just the cost of rice that has increased in the past few
months. The prices of most basic goods, especially food,
have also risen; inflation rate soared 6.4 percent in
March, a 21-month high. And there’s no relief in sight
against the continued surge in food costs; some analysts
see inflation reaching 8 percent this year. Oil has also
hit an all-time high of $117 to $119.93 per barrel. The
effects of the continued rise in oil prices will
eventually trickle down to the consumers in the form of
higher prices of goods and services.
In the
light of all these, the government can only do so much
to curb rising food costs. While authorities try to find
ways to control prices and mitigate its impact on the
masses, we should also do our share to survive in a time
of high food costs. Since the working class will
unlikely get a wage increase that can keep pace with the
rise in prices (the Bangko Sentral ng Pilipinas warned
that a sharp increase in wages will lead to even high
inflation), what else can be done? The answer would be
to practice frugality.
What we
are actually experiencing right now is not a food
crisis, but a food “price” crisis. There’s no shortage
in the supply of food; commercial rice, although a lot
pricier, as well as meat, fish and vegetable are widely
available. What’s in short supply is money, which can no
longer buy what it used to. High prices will not go away
anytime soon, so we will have to learn to live with it.
One’s best defense in times of high cost and limited
income is to spend wisely.
Managing
expenses properly will allow you to buy more for your
hard-earned money even without any increase in your
income. Start by reducing or eliminating expenses not
essential to the family’s survival. Some things one can
do without: smoking, high-priced coffee (stop paying for
the experience), booze, expensive clothes and shoes,
frequent nights out, gambling (illegal or legal),
top-of-the-line cell phones and gas-guzzling SUVs.
Examine
your expenses and find ways to reduce them. Always
compare prices and find cheaper alternatives; when money
is in short supply, you can’t be too choosy. By spending
your money wisely, you can free up hundreds, if not
thousands, of pesos every month, which you can use to
buy the things that really matter like food, shelter and
education. Frugality will also allow you to regularly
set aside a little for your savings even on a tight
income. A healthy level of savings will be your lifeline
during a real crisis.
Filipinos spend more than 50 percent of their income on
food consumption; hence, this is one area where you may
realize substantial savings by cutting down on waste and
making smart food choices. For years I have been
tinkering with the idea of starting a “clean plate”
movement because I find it immoral for people to leave
significant portions of food on their plates when
millions are suffering from hunger, besides the fact
that wasting food is akin to throwing away money.
Perhaps the time has come for the movement to start
rolling.
The
“clean plate” movement calls for individual action to
limit food waste. Specifically, it calls for “clean
plate” advocates to commit to these few action steps:
1. No
leftovers. When dining out, take home what’s left for
later consumption or share with other people. At home,
get creative with leftovers instead of throwing them
away.
2. Order
only what you can easily consume in one sitting; share
large servings of food.
3. Do
not allow food to spoil; consume or give them away
before it does.
If you
want to be a “clean plate” advocate, send me an e-mail
with your full name and other contact details so you can
be included on the official list. I will make the list
accessible for viewing by the general public so that
your decision to take action is recognized. I also
encourage you to ask your relatives, friends and
colleagues to follow the few simple steps to cut down
food waste and save money in the process.
****
Alvin T. Tabañag is a registered financial planner and a
member of the RFP Institute and the Association of RFPs
in the Philippines. He is the founder and training
director of AdvantagePlus Consulting and creator of
www.PinoySmartSavers.com, which is dedicated to
promoting a culture of savings among Filipinos through
financial education. Comments and questions about the
article and other queries maybe e-mailed to alvintabz@yahoo.com.
Join the 11th RFP Program (July 5 to August 23, 2008).
Visit www.rfp-philippines.com or inquire at info@rfp-philippines.com/Tel.
No. 634-2204. |
