Wednesday, July 11, 2007 Oledan: Maneuvers By Radzini Oledan Slice of life
DURING the past decades, impending shortage (real or imagined) in agricultural products was responded with the policy of importation.
The impact of importation has far-reaching effects on farmers and agricultural workers who have persistently clamored that the Department of Agriculture impose a moratorium on the practice of importing agricultural products which has left them with little space to maneuver in the market, much less survive.
The lack of subsidy in local production, marketing and procurement of local agricultural products have been blamed on a weak policy response which has led to the sector's dismal state and the further marginalization of farmers to compete in the market swamped with low imported products from other countries.
The monopoly of local cartels which controls the pricing scheme in the domestic market and insecurity in land tenure are among the factors that have to be taken up by policy makers and industry movers, if the local agricultural sector has to survive.
Farmers have to face the reality that they get very nil support and subsidy in their production. Marketing and procurement schemes which are centered on the biggies of the industry have effectively disabled the farmers to push their products in the local level and compete in the global trading scene.
From 1995 to 2002 alone, the country incurred $5.2 billion of agricultural trade deficit, which goes to show that the unbridled scheme may yet prove to cause the slow but sure death of the local agriculture and the farmers.
The “safety nets” prescribed by those who are advocating for agricultural liberalization failed to go beyond the culture of market monopoly and supported by politicians, which ensures that trade regulations would work on their best interest.
Super profits are expected for foreign and local monopolies with the importation of agricultural products that are locally-produced such as rice, corn, onions, potatoes, cabbage, and livestock.
Through market manipulations, the monopolies create shortage of supply just as the rice crisis in 1996 in order to justify heavy importation and increase the market prices.
Agriculture directly account for about a fifth of the total economy and employs about 10 million people or nearly 40 percent of the labor force.
The rhetorics on competitiveness for the agriculture sector for global trade is met by inadequate resource allotment and inefficient public investment for the agricultural sector.
