Entrepreneurial Farmer

Ambrosio R. Villorente

The Increasing Price of Rice

The month of June is the end of the summer season and the start of the rainy season in the Philippines. This is also the start of the scarcity of food especially rice.
Lately, almost all rice consumers in Aklan noticed the sudden increase in the price per kilogram of rice in the market. In a meeting with the National Food Authority officials and the representatives of the office of the Provincial Agriculturist of Aklan held last week in the Provincial Capitol, Governor Carlito S. Marquez cited some market factors which triggered the rice price increases such as the increase of money in the hands of the consumers enabling them to increase purchasing power. Not revealed is the increase of real estate taxes, fertilizer and other chemicals, wages, land preparation and hauling cost. These factors are demotivating farmers in their quest for production.
As local rice production is always inadequate for the need of the Filipinos, the government resorted to the huge importation and sells it lower than its buying price and landed cost. This rice importation, according to the National Food Authority is to stabilize supply and price. This is motivating foreign farmers to produce more rice for export to the Philippines. These cheap imported rice encourages more rice consumption. It promotes the buying of more rice as it is becoming cheaper and safer to buy imported rice than to produce it locally. Why produce rice when one can have it in the market at less cost than the locally produced palay? Since strong typhoons destroy more crops annually, investment is safer rather than damage during floods and strong winds.
ELECTION MONEY
According to Governor Marquez, there was a sudden increase of money supply during the May 14 local election. In view of that more supply of money, the buying capacity of the consumers also increased. More consumers purchased rice more than the usual quantity they used to buy. As a result, there is more demand for rice.
Following the law of supply and demand, the rice traders increased the price of rice as their supply gets less and less. As it is said, the price of a commodity increases as its demand increases. Price will also increase when the supply gets less and less.
How much money the candidates really released to the campaign trails so that it triggered the increase of prices of rice and other commodities in the market?
How much did Tibyog Aklan spent in the election? At least Governor Marquez, who cited the recent election as cause of increased consumers purchases, is in the know how much it spent. Anyway, all candidates are mandated to report their actual expenses during the election campaign period.
EATING HABIT
While other rice eating people in Asia has changed their eating habit, the Filipinos, in general has not. The Japanese, Thais, Malays, and Indonesians to cite a few have been consuming less and less rice. They are now eating more vegetables and fruits and other highly nutritious foods like meat. Rice consumption in the Philippines increased from 97 kilograms average per capita annually to 119 kilograms for the last seven years. This is 22.68 percent increase rice intake. Furthermore, the price of palay remains stagnant at P10 to P12 per kilogram during harvest season while the cost of production is continuously increasing.
The Filipinos, instead of shifting to eat more vegetables and fruits, they have increased their rice in-takes. These according to economist are brought about by the increasing poverty among the Filipinos. The cost of vegetable, fruits, meat and dairy products had been increasing to the point that those products are listed at the bottom of the market list. On the other hand, the price of rice is maintained to its usual level. So that budget for food is spent first for rice and what remains of it is spent for other foods. There is less or no money left for other food stuff.
8 – 2 – 2
The result of the May 14 election for senators is fast developing into an 8–2–2 victory for Genuine Opposition, two for Team Unity and two for independent candidates. GO’s Loren Legarda, Francis Escudero, Panfilo Lacson, Manuel Villar are tightly holding to the top four. Independent candidates Kiko Pangilinan and Gregorio Honasan are so formidable in their positions. Only Edgardo Angara and Joker Arroyo of TU are included in the magic 12. Noynoy Aquino, Allan Peter Cayetano appear so secured in their top 10 positions. Antonio Trillanes III and Koko Pimentel in the 11th and 12th positions maybe dislodged unless miracle happens.
The 8–2–2 is a 16.66 percent batting average, a miserable defeat to the Arroyo administration in the senate race. This defeat is the rejection of Mrs. Arroyo’s handling of government affairs.
Senior Citizen’s Pain
The government of Mrs. Arroyo has been causing pain to the senior citizens especially to the retired government officials and employees. Since January 2007, the GSIS pensioners are not paid their monthly pension being caused by Mr. Winston Garcia. He continuously imposes the use of e-Card plus which application in the municipalities and provinces are impractical.
Mr. Garcia deposited the GSIS pension fund with the Union Bank which does not exist in most of the provinces in the Philippines. This GSIS pension money is causing so much pain instead of comfort for which the GSIS was established. Unless and until Mr. Garcia is changed as the chairman and manager of the GSIS, both state employees and retirees will continue to feel the pain.
Actually, there are now several Aklanons who passed to the great beyond without enjoying their monthly pensions for the last six to eight (6-8) months. Mr. Winston Garcia is inflicting both state employees and pensioners much pain.
He must leave the GSIS office now! Just imagine he is enjoying a P350,000 monthly salary, P500,000 monthly allowance, exclusive use of elevator in the GSIS and many other benefits. That money came from the sweat and blood of the state officials and employees.
Repeat, one cause of the defeat of the administration senatorial candidates in the last election is the worst services and treatment the GSIS is providing to the state employees and government retirees. Senior citizens voted them out.
Mr. Winston Garcia must leave the GSIS and allow a compassionate chairman/manager to manage the affairs of GSIS. /MP