Wednesday, April 02, 2008
Farming programs as key to increase rice production
MANILA -- Agriculture Secretary Arthur Yap said the key to increasing rice production in the country is by continuously spending on irrigation, ensuring the implementation of national seeds program, and distributing flatbed dryers to the different farming areas.
Yap said part of the five percent surplus registered by the different government-owned and controlled corporations (Goccs) and financial institutions (GFIs) in 2007 would be spent on these three items to help ensure continued and possibly increase rice production.
President Gloria Macapagal-Arroyo, upon arrival from Hong Kong on Tuesday night, said she will issue an administrative order directing the Goccs and GFIs to use the five percent of their more than P100 billion surplus in 2007 for rice production and other pro-poor programs.
Under the administrative order, the government corporations and institutions are instructed to coordinate with the agriculture and social welfare departments in determining which projects and programs they could be involved with. These programs and projects would be implemented in three years.
The President said this would be in addition to the P32-billion surplus of the local government units (LGUs), which they could use to increase rice production and can then sell to the NFA to help ensure that their poor constituents would have continued access to the more affordable NFA rice.
"We're preparing the work and financial program for that (surplus) but it's very clear that the formula for increasing rice production in our country which even the Irri (International Research of Rice Institute) has noted would be continuous spending for irrigation," Yap said.
He said the additional sources would go along way in funding the rehabilitation of existing irrigation facilities, which would be cheaper at an estimated P80,000 to P100,000 per hectare as against the construction of new irrigation system, which costs P200,000 to P500,000 per hectare.
"The second most important component that we are doing right now is a national seed support program because if we have irrigation but if we don't support our farmers to come up with the appropriate certified and hybrid seeds we don't have anything for planting. Third, we have to pay attention to our flatbed dryers," he added.
Yap said the government has already started the distribution of flatbed dryers to some agricultural areas in 2007.
He said aside from increasing rice production, the government would continue to import rice from other countries like the United States, Vietnam and possibly from Thailand.
He said while the country has enough rice supply and the production continues to improve, the government must prepare for the worst scenarios.
Yap added that with factors like climate change, increase in cost of production, increasing population growth, increasing demand from different parts of the world, "it is incumbent on the government to think ahead."
"As a function of good governance the government considering what the world is undergoing today we need to balance the harvest. We need to think of worst case scenario so there should be continuous sourcing of rice for our country at any point in time we will not face our countrymen and tell them we have no more rice supply in our market," he said.
He said with the problem of low supply and rising prices of rice in the world, the Philippine government is now into an "aggressive procurement and aggressive distribution" of rice through the NFA.
Yap said they expect to discuss with Thailand officials the possible importation of rice, which was first tackled during the President's stopover in Bangkok in January while on her way to Davos for the World Economic Forum.
He said the discussions would include the volume of rice to be imported, which could also be influenced by the results of NFA tender on April 17 where Thailand and Vietnam had also been invited.
Arroyo was supposed to meet Thai Prime Minister Samak Sundaravej in the Philippines on Friday but reports said he is canceling his trip to the Philippines and Brunei after being downed with intestinal flu while in
Laos.
Deputy Presidential spokesman Anthony Golez said they have heard of the conditions of Samak, but they have yet to receive an official notice from them about the cancellation.
Yap said the government is now studying the possibility of extending the NFA's Tax Expenditure Subsidy Program where the National Government shouldered up to 50 percent of the tariff imposed on all rice importations.
He said through this measure, they would be able to ensure enough supply of rice and at the same time protect the palay (rice grain) farmers.
He said the Tax Expenditure Subsidy Program would be discussed by the economic managers when they meet within the week.
Under the said scheme, the NFA utilizes funds available under the Tax Expenditure Fund, which is included in the National Government's annual budget, to pay for the tariff on imported rice.
The Tax Expenditure Fund is given to government-owned and controlled corporations, which applied for tax expenditure subsidy, on top of the agency's annual budget.
The said scheme was raised after Arroyo rejected proposals to cut the tariff on rice imports to ensure continued supply of rice.
The President said with the expected continued increase in the prices of rice, cutting the tariff would only affect the country's revenues. (Sunnex) |
