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Wednesday, April 16, 2008
Low-priced NFA rice to be removed from public markets
MANILA -- The government would pull out from the public markets of Metro Manila in two to three weeks the P18.25 per kilo rice being supplied by the National Food Authority (NFA) and concentrate their distribution in urban poor areas, said Agriculture Secretary Arthur Yap.
Yap, in an ambush interview after the Cabinet meeting at the Department of Justice (DOJ), said what would be made available in the public markets is the P25 per kilogram commercial grade rice that the agency has also been distributing.
Arroyo Watch: Sun.Star blog on President Arroyo
"The President (Gloria Macapagal-Arroyo) wants to ensure food for poor families," he said.
He said the local government units (LGUs) would do a "poverty mapping" in coordination with the Department of Social Welfare and Development (DSWD) and "faith-based groups" to identify the areas where the low-priced rice would go.
He said LGUs would issue "access cards" for each household to ensure equal distribution of the P18.25 rice and to prevent "domestic hoarding," adding that there is actually a 15 percent increase in household rice stocks because of the "normal reaction of Filipinos" of stocking up in case supplies run out or prices go up.
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He said the NFA, LGUs, and Department of Social Welfare and Development (DSWD) would determine how many kilos of rice a family could buy, but it could be two to three kilos for a family of five per day.
He said the 12 "critical urban distribution centers" in Metro Manila would serve as the pilot-testing area of the distribution scheme. The government would then study how to expand the program to the countryside, where the rice supply is actually good.
Yap said there are no talks yet on whether to increase the prices of NFA rice because the government's priority is to distribute low-priced rice to the poorest of the poor. "We are keeping the P18.25 rice right now," he said.
He added that the subsidy for the two billion kilos of imported NFA rice, which is sold at P18.25 to P25 a kilo, is expected to reach P20 billion for the entire year.
According to Yap, the government is studying how to prevent too much bleeding of the NFA.
He also said the buying price of palay (unhusked rice), which government has recently raised from P12 to P17 per kilo for the summer months, could either go up or down depending on a review that would be conducted later by the Department of Agriculture (DA).
The buying price of palay was raised because President Arroyo received reports that the farmers are not disadvantaged by the increased buying price.
"So if we could address this issue we can reflect a more realistic pricing for the palay in the upcoming wet season. So that is up for review as well," he said.
The agriculture department was also ordered to coordinate with the private sector producers of cereals and noodles to diversify and use other raw materials, such as coconut flour or vegetables in their products.
He said the Benguet State University (BSU) is preparing the technical studies for processing vegetables as additives for noodles, while the Philippine Coconut Authority is preparing the suppliers to put other additives in noodles.
But Yap said the DA will not investigate the Commission on Audit (COA) report that the NFA lost P2 billion in 2005 for selling imported rice to traders at a lower price.
"There are agencies that are better suited to do investigative work. Let's leave it to them. Let's keep the DA's attention in increasing domestic production," he said.
The President, in her opening speech at the National Economic and Development Authority (Neda) Cabinet meeting, assured that "supply is secured for the foreseeable future."
She said 50 percent of the total contracted quantity of NFA rice from the December 2007 to March 2008 bidding is 1.2 million metric tons (MTs) has arrived. She said 66,000 MTs is in transit while 30,600 MTs is being loaded at road ports.
She also said the NFA is set to bid for additional rice stocks on May 2, subject to the approval of the Government Policy Procurement Board for arrival in June, July and August.
Arroyo also said the government has been exerting all efforts to increase rice production to meet demand.
In Negros Occidental, the NFA said Tuesday that there is no problem on rice stocks in the province.
"We have no problem with rice stocks. In fact, there is no queue of people in any outlets in the region," said NFA Regional Director Vilma Zarraga.
Zarraga said the available rice supply in the region is good for 83 days, adding that "600,000 bags of imported rice are coming in, and the rice harvests in most parts of Panay are enough to fill the need until the next cropping season."
She said Negros Occidental has 1.3 million bags of rice, 253,000 of which are in government hand, 708,000 with commercial retailers/wholesalers, while 431,000 are household stocks.
The distribution efforts was developed as Presidential peace adviser Jesus Dureza denied a report that the UN World Food Programme may be forced to cut rations to more than a million Filipinos in conflict areas in Mindanao due to soaring world prices.
The report said the World Food Program (WFP) only has 4,000 tons of rice left in its warehouse in Mindanao, which would last for only two months. The WFP has fed about 1.6 million Filipinos in Mindanao last year, mostly women and children. Its program involves enticing the sending of children to school in exchange for rice rations to their families.
Dureza, in a text message, said WFP assistant director Patricia Facultad has assured him that "although facing challenges in 2008 for resource mobilization of US$19 million, WFP is not withdrawing (from its program)."
Reports said WFP will need US$500 million in extra worldwide funds this year due to rising food prices, with US$19 million needed in immediate "operational funding" for Mindanao. (Sunnex/Karl G. Ombion of Sun.Star Bacolod)
For more Philippine news, visit Sun.Star Bacolod. (April 16, 2008 issue)
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