Some sectors have blamed the Philippines' rice auctions and continuous importations for contributing to the skyrocketing global price of the staple.
But Arroyo attributed the soaring price of rice to "a combination of factors in the whole world" like the spiraling petroleum costs, increased demand from China and India, negative climatic conditions, reduced investments in agricultural productivity, growing urbanization, and the diversion of agricultural land for bio-fuels to reduce climate change.
According to her, it is also a "typical reaction" for the exporting countries to "husband their own stocks" due to the rising price of rice.
Thailand and Vietnam, said Arroyo, are selling their rice locally at higher prices compared to the rate that the National Food Authority (NFA) is selling in the Philippines in order to "contain their own inflationary tendencies."
On the other hand, she said importing countries try to shore up their stocks -- just like the traders, importers and even families.
"All of these lead to a shortage, which has been further exacerbated all over the world by panic situations and hysteria created by the media and political opponents in various countries," she said.
Arroyo added that if some parties would not be able to buy rice this year, it would be due not to lack of funds but to "sheer unavailability of the rice."
"Traditional relationships are a key element as sellers are forced to choose between hordes of willing buyers with open wallets. So buyers who bought early are the only ones with rice. Only those who come to the party early leaves with party favors. Thank goodness the Philippines is one of them," she said.
The President said Philippines was an "early arrival" in the party because its agriculture and NFA officials saw the shortage coming and worked to head it off before it hit. She said the country invested heavily in agricultural production measures and new strains like the hybrid rice.
She said government is ensuring rice distribution to those who need it most by tapping churches and religious organizations, and schools once classes start in June. She also said government is cracking down on price gougers and those who exploit the situation.
To remedy the supply problem, she said, food production must be increased and food delivery improved.
"The country's agricultural modernization program has enabled rice production to rise more than the population growth rate of 2.04 percent," Arroyo said.
On the demand side, she said government faces the challenge of putting more money in poor people's pockets, promoting good nutrition and promoting birth spacing.
She said the Philippines has been importing rice since the Spanish times and it has not yet closed the gap "in a sustainable manner." (JMR/Sunnex)
