LOREN URGES GOV'T TO REVIEW RICE PRODUCTION PROGRAM

There is a need for the government to review and revise our rice production program to improve the productivity of our rice farmers and put an end to the country's being dependent on rice importation due to production shortfall and insufficient rice supply.

Senator Loren Legarda, chairman of the Senate committee on agriculture and food issued this statement even as she plans to set a Senate committee hearing to look into reports that the Philippines paid 45 percent more for its rice imports from Vietnam .

"The disclosure by a respected news agency that the Philippines paid 45 percent more for its rice importation from Vietnam deserves to be looked into," Loren said.

However, Agriculture Secretary Arthur Yap has defended the government's negotiated purchase of rice from Vietnam , saying that the government actually realized savings of $27.4 million for its rice deal done in 2008.

According to newspaper report, Yap, in an interview with DZMM, said that on average, the price paid by the Philippines to Vietnam was lower.

The news report added that, using data from the government of Thailand as comparison, Yap showed that while Thai rice was being sold at $672 per metric ton, the Philippines secured Vietnamese rice at $645/MT. Also, Thailand rice quoted at $617/MT was secured by the Philippines at a lower $595/MT.

The news report also stated that National Food Authority Administrator Jessup Navarro said that the transaction actually saved some P369 million ($7.54 million) for the government based on the prevailing February 2009 prices of the grain as posted by the Board of Trade of Thailand, which is the industry reference for the world market price.

According to the same report, Pablito Villegas, an agricultural economics consultant of the United Nation Food and Agriculture Organization, said "it must have been an extraordinary deal, that's why there's an extra premium."

Loren would also look into whether the volume of rice that the government had negotiated to import is really needed as compared to the estimated production and present buffer stocks of rice.

"Over importation would greatly affect the price of locally produced palay and would eventually reduce the income of our rice farmers or make them incur losses," Loren said.

Loren said that she is wondering why the Philippines which was once experiencing rice sufficiency and even exported rice in the past has become dependent on rice importation to fill up the rice supply gap.

"The only reason for this is government's inefficiency or the adoption of the wrong policy. There is a huge tinge of humiliation for the Philippines , an agricultural country, to be reputed as the world's biggest importer of rice," the lady senator said.

Citing the recommendation of the then Agricultural Commission on Agricultural Modernization (Agricom), which crafted the Agriculture and Fisheries Modernization Act (AFMA), Loren calls for a review if there is a need to end the National Food Authority's (NFA) monopoly and direct intervention in the domestic and international trade in rice and corn.

Loren said that according to Agricom, the NFA's mandate should be focused mainly on ensuring buffer stocks for emergency purposes and monitoring of grains movement and volume of stocks in the market.

As this issue on rice importation developed, Loren said that there is a need to step up modernizing agriculture and fishery in the country to make our farmers and fisherfolk more productive and to ensure food supply at affordable prices for our people, instead of always relying on importation to fill the food supply deficiency.

Loren, who also chairs the Congressional Oversight Committee on Agricultural and Fisheries Modernization (COCAFM), said the country needs a top-to-bottom modernization that will include all sorts of farm produce.

"There is a need to step up modernizing agriculture and fishery in the country to make our farmers and fisherfolk more competitive and productive and to ensure sufficient food supply at affordable prices for our people. Modernization of the two sectors would also provide our people the most effective weapon against hunger and poverty," she said.