Business (as of 3/19/2008 1:02 AM)
Rice prices on the rise; NFA mulls im****ts from Cambodia
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 im****ting 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 im****t rice
from Cambodia as an alternative source to Vietnam which is now
controlling its ex****t 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 re****ts 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 im****ted 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 im****tation. So far, we have not
resorted to this as we still im****t rice by auctioning."
The Philippines, one of the world's biggest rice im****ters, is having
trouble sourcing enough of the staple to meet this year's im****t
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-****tions
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 ****pment 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 Fi****ng 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
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