Rice prices on the rise; NFA mulls imports rice from Cambodia

A Cambodian farmer is transplanting rice in her paddy.

By MARIANNE V. GO
The Philippine Star

MABALACAT, Pampanga — President Arroyo said here Tuesday that the price of rice is expected to increase due to the lightening of the commodity’s supply worldwide even as the National Food Authority (NFA) is looking at the possibility of importing rice from Cambodia.
The President, however, assured Filipinos that there will be no shortage of the staple food in the country.
NFA Administrator Jessup Navarro said the Philippines may import rice from Cambodia as an alternative source to Vietnam which is now controlling its export of the grains. He said the NFA is set to conduct a pesk risk analysis of Cambodian rice.
The NFA had accepted all tenders for 335,000 metric tons (MT) of rice at prices ranging from $618.50 to $745 per metric ton, with arrivals expected from March through May.
In her talk during the soft opening of the Clark to Subic segment of the P21-billion Subic-Clark-Tarlac expressway here, the President said that she arrived with a rice hauler truck of the NFA to form part of her convoy for the ceremonial drive through at the new tollway "because we want to signal that the supply chain for rice can meet the demand."
Citing reports of impending worldwide shortage of rice, the President said consumers should not fear shortage because the country’s rice supply remains stable.
NFA spokesman Rex Estoperez told The STAR that regardless of the final decision on the increase, the current P18.25 per kilo price of NFA rice would be maintained in the 20 poorest provinces in the country and for government programs for indigents.
He noted that the price of imported rice has gone up abruptly from $404 per metric ton last December to $700 per metric ton last March 11.
"There is yet no plan to raise the cost of NFA rice, despite the losses in subsidizing rice being sold in NFA outlets. But considering the increase of prices worldwide, I suppose that’s where we’re headed for," he said.
He cited proposals to increase the price of NFA rice in outlets outside markets of poor communities, but could not immediately say by how much it would be.
Estoperez said "there is the government-to-government protocol we can resort to so as to ensure our importation. So far, we have not resorted to this as we still import rice by auctioning."
The Philippines, one of the world’s biggest rice importers, is having trouble sourcing enough of the staple to meet this year’s import requirement of up to 1.8 million tons due to soaring prices and tight world supply.
It has so far bought about 1.2 million tons for 2008 supplies.
It plans to re-tender for 100,000 tons of U.S. rice after a failed auction last week.
The government has asked fast-food restaurants to serve half-portions of rice and President Arroyo has ordered a crackdown on hoarding.
But a farmers’ group blasted the proposed reduction on rice serving in fast food stores.
Last month, Mrs. Arroyo went outside normal commercial channels to ask Vietnamese Prime Minister Nguyen Tan Dung to guarantee a supply of up to 1.5 million tons of rice.
But Hanoi said it could only ensure a shipment of 1 million tons, including a volume of around 700,000 tonnes which Vietnamese traders have already agreed to supply after auctions in January and December.
There is a global shortage of rice due to increasing demand and competition from African countries.
Senate President Manuel Villar Jr and Manuel Roxas II both called on the government to implement drastic measures and be transparent on the real situation of the country’s rice supply to avert a full-blown crisis.
Villar called on the Department of Budget and Management and the Department of Agriculture to release the funds intended for the Agriculture and Fishing Modernization Act (AMFA).
He said the government should make sure that the P20-billion fund will indeed go to the farmers.
Roxas, chairman of the Committee on Trade and Commerce, urged the government to release calamity funds to avert a possible crisis.
"The normal definition of ‘calamity’ is that there’s a storm or an earthquake. Now we’re saying that there will be a calamitous situation in our country if we don’t have enough rice," he said. — Ding Cervantes, Marvin Sy, Katherine Adraneda, Cristina Mendez