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Title : Filipino farmers warn of increasing rice prices amid supply crisis
By :
Date : 27 March 2008 2203 hrs (SST)
URL : http://www.channelnewsasia.com/stories/southeastasia/view/337667/1/.html

MANILA: Filipino farmers are warning of a worsening rice crisis in the country. They said prices are likely to soar amid an expected lean harvest in April.

As the country faces a serious rice supply crisis, they warn that the recent rice shortfall could cause the price of the staple to soar to up to US$1 per kilogram from the current average of around 60 to 70 cents per kilogram.

Filipino farmers are criticizing the government for relying on imports to satisfy the country's rice requirements.

Jaime Tadeo, Chairman of the National Rice Farmers Council, said: “There is no policy to increase rice production to feed the growing population. Government's policy is based on importation for the nation's food security."

The Philippines consumes about 11.9 million metric tons of rice annually, most of which is grown domestically.

But declining domestic production and corruption in the rice supply chain have created a recurrent shortfall of about 10 per cent.

The government has to purchase about two million metric tons from the international market every year from Vietnam and Thailand, making the Philippines the world's biggest rice importer.

Though President Arroyo acknowledged that there's a scarcity of rice in the country because of global warming and increased world demand, the Department of Agriculture insists that there is no rice shortage in the Philippines and that there is no reason for the Filipino public to panic.

The Department of Agriculture just recently signed another agreement with Vietnam guaranteeing the supply of one million metric tons of rice for the Philippines.

But with Vietnam also experiencing a decline in their rice production this year, there's no guarantee that there will be enough rice for the country. - CNA/vm




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