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Rice Article: Philippines  

Rice imports necessary to fight speculators - DA
Business World, September 3, 2002

The Department of Agriculture yesterday said additional rice imports for the rest of the year is necessary to "defend the country's rice supply from speculative attacks."

In a statement released yesterday, Agriculture Secretary Leonardo Q. Montemayor said the importation of 250,000 metric tons of rice in the last quarter will ensure that the country's rice supply "remain adequate and at comfortable levels" despite the expected impact of the El Niņo dry spell.

"Prudence requires that we take the necessary action to import an additional 250,00 metric tons of rice in view of possible weather disturbances," he said.

The Philippine Grains Confederation supported government's move saying this will ensure that the country will have adequate supply during times of calamity.

"As long as the additional rice import will only serve to support the National Food Authority's (NFA) overall buffer stock and that it will be directly injected into the market," president Joji Co also said in the statement.

Meanwhile, the NFA has moved to stave off the rising price of rice in Mindanao by making available government rice stocks in its various outlets at PhP16 per kilo.

This was disclosed by NFA Zamboanga Peninsula (in western Mindanao) director Ernesto Macasinag. The NFA recently noted price increases but he said this is normal occurrence at this time of the year, which is considered the lean period for rice supply in the country.

"NFA's regional offices last week were instructed to make sure that the price of rice does not go beyond reasonable levels, and that there is government rice in public markets at PhP16 per kilo," Mr. Macasinag said. This developed as some 520,000 bags of Vietnam rice are being unloaded in Zamboanga City from two vessels that arrived here last week.

The stocks, Mr. Macasinag said, are intended to raise the buffer inventory of government-held rice in the region from the current 1.6-million bags to the target two-million bags prescribed by government for the area. This will be equivalent to a 30-day supply as per the region's consumption rate.

Part of the shipment will also be released to the region's provinces in order to maintain a comfortable level of supply for sale to the public, he said. About 50% of the imports will be distributed in this city, which among the provinces and cities in the Zamboanga Peninsula, is experiencing a shortfall in palay (paddy rice) production, he disclosed.

The total imported rice allocation for the region this year is 1.3-million bags, more than half of which has already been delivered. On the other hand, the region's palay production this year is expected to top 600,000 metric tons, he said. Palay has been selling at a "good price" during the year and for that reason the regional office has procured only 5% of the farmers' yield, he also said.

NFA is selling rice at 650 Philippine pesos (US$12.533 at PhP51.864=$1) per 50 kilo-bag in subsidized areas and at commercial rates in non-subsidized areas to lessen its losses, he said. Subsidized rice is being sold through its Bigasan Bayan and credited outlets found in major public markets as well as through the 66 rolling stores operating in this region, he further said.

In General Santos City (in central Mindanao), meanwhile, the NFA said it imported some 371,000 bags of rice from India to beef up its buffer stock for Southern and Central Mindanao.

Fernando Nuņez, NFA provincial manager, said some 243,000 bags of Indian rice were recently unloaded in Davao City (southern Mindanao) while some 128,000 bags were unloaded at the Makar Wharf in General Santos. "These imports will be used to increase our stocks as part of our preparation for the El Niņo (phenomenon)," he said. El Niņo is a weather disturbance characterized by a long dry spell.

The Agriculture department has warned of possible decline in crop production due to the weather disturbance later this year.

In 1998, Central Mindanao was among the areas hardest hit by El Niņo triggering a massive shortage of rice and other food supplies. Several indigenous peoples in the area died after eating a toxic root crop known as kayos due to food shortage. -- Leilani M. Gallardo, Rey Luis Banagudos, and Allen V. Estabillo

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