As World Bank reports leakage in subsidized NFA rice
ANGARA PUSHES FOR LONG-TERM AGRI INVESTMENTS IN FY 2009 BUDGET

Sen. Edgardo J. Angara today renewed his calls for a long-term agri investment in the form of irrigation and post-harvest facilities amid reports that less than one-third (or only 31 percent) of the subsidized NFA rice goes to the poorest households while as much as 41 percent leaks to non-poor families.

"We are spending billions of resources which otherwise could be allocated to long-term investments to boost our agricultural productivity. Our failure to initiate a long-term and focused effort to boost agricultural productivity could result to more poverty and widespread hunger," said Angara who chairs the Senate Committee on Agriculture and Food.

He added, "The country has continually faced the problem of high food cost, worse, it has the highest food prices among the ASEAN countries. And this spells bad news, especially during these tough times with the credit crunch already pinching us all."

A World Bank study said that only 31 percent of the cheap, government-subsidized rice sold by the National Food Authority (NFA) reaches its intended beneficiaries, the poorest 20 percent of Filipino households.

Evidence also shows that the government program is not well-targeted to the poor. The program, however, entails large cost for the government with 2008 expenditure estimates reaching up to Php 60.9 billion for the subsidy program for NFA.

The report also accounted that food comprises about 60 percent of household expenditures for poor Filipinos, with rice comprising a fifth of total expenditures,

On the other hand, Angara suggested that the FY 2009 budget could serve as a vital cushion for poor Filipinos amid this crisis by providing more job opportunities and improving agricultural productivity.

"The bottom is not yet hit and we may see more joblessness and more people falling below the poverty line. And that's why we must craft the 2009 budget to act as a crucial cushion. We must spend these precious limited resources and put it in to good use so that we will be providing our people with some cushion and safety net."

Asian Development Bank (ADB) emphasized the need for wide-scale structural reform in the agriculture sector to prevent future food price surges. Food and Agriculture Organization, a specialised agency of UN that leads international efforts to defeat hunger, said the higher food prices accounts for the increase in global hunger, from 75 million to about 925 million worldwide.

International Rice Research Institute, the world's leading rice research and training center which is based in the Philippines, have called on governments to reinvest in agriculture. Investments should be funneled to research geared towards strengthening agricultural research, infrastructure development, training and education of agricultural scientists.

Angara said that genuine investments in the agriculture sector should include rehabilitation of irrigation facilities and provision of post-harvest facilities. Rehabilitation of inadequate irrigation systems in 400,000-hectares of land could yield additional 2 million tons of rice, while better post-harvest facilities could help save 15% of production losses. This could achieve not only higher agricultural productivity but also rural poverty by providing jobs to many poor farmers.

Angara, who is a former Secretary of the Department of Agriculture (DA) from 1999-2001, currently chairs the Senate Committee on Agriculture and Food and the Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM). He has authored significant legislations in agriculture including the Agriculture Fisheries and Modernization Act (AFMA), a masterplan for agricultural modernization which other countries in Southeast Asia have adopted.