NEWS FEATURE

Rice Shortage: Practical Solution

by ERNESTO T. SOLIDUM

In 1998 while campaigning for the Vice Presidency, then Sen. Gloria Macapagal Arroyo woed voters with bountiful rice on the family table. She clinched that title together with erstwhile Pres. Joseph Estrada. Again in 2004 she proved her mettle by putting out another poster as a young lady clutching a bundle of rice harvest.

During those times food security was paramount in people’s minds because importations of rice and corn cost several million dollars and its availability in the world market is erratic. It was also the time that world forum delved on hot issues like climate change, environmental degradation, greenhouse effect, runaway population, end of cheap fossil fuels and impending food crisis.

Now, after six years in Malacañang GMA seems to be groping around for reasons why rice and corn are fast disappearing on our tables. The price of rice has increased to P35.00/kgm. Prospect of a P40.00/kgm rice is loathsome and ripe for civil unrest and overthrow of democratic institution. (A UP Los Baños professor predicted market price of rice will reach P60.00 per kilogram.)

At 122 kgm per capita consumption per year and projected at population of 90.4 m. (2008), demand for rice is 8.3 m. mt’s (20 percent of population eats corn). Projected rice production for the period (deduct allocation for seeds and feed) is 8.8 m mt’s. This leaves a narrow margin of .5 m mt’s surplus. This however is dependent on variables like climate and outbreak of pest and diseases.

It is for the above reason that DA, NFA and other government agencies are frantically seeking to clinch 1.5 m mt’s of rice from Thailand (The country along with Vietnam, Myanmar, etc.) is suffering from production shortfalls. Apparently, desperate times call for desperate measures. Failure and omission do not exist in a vacuum. It should be underscored that GMA paid only lip service to Gintong Masaganang Ani (GMA) rice and corn self-sufficiency program. (Remember Usec Jocjoc Bolantes’ fertilizer scam). It succeeded also in undercutting on stream modernization program started by then DA Secretary Edgardo Angara. Under the present leadership of Secretary Arthur Yap, it appears that solution to centuries’ old rice shortage is more imports. Dramatic decline in cereal production started with devolution of DA to LGU’s whose leadership skill on technical matters remain dubious, at best perfunctory. There are notable exceptions particularly on commercial hybrid rice but their numbers could be counted on the fingers. Moreover, budget allocation for agriculture and fisheries were relegated and favored high profile projects.

Being a former production technologist of DA, it is no joke to be planting hybrid rice or latest registered different from our forebears 40 years ago. One has to establish a pure and healthy seedling stand, calculate fertilizer and chemical inputs, manage pest and diseases, irrigation and drainage, gain factual knowledge on post harvest technology and determine when to market the product. Rice farming entails a lot of water – as much as 15 – 20 drums per square meter for the 105 – 110 day growing period. It is also a gas guzzler. A significant percentage is spent on fuel for ubiquitous machines like rototiller, thresher, irrigation pump, mechanical dryer, blower and transport.

Ironically for all the money, time and energy spent on rice farming, a large majority remains poor. Apparently this has to do with shrinking cultivated area – less than 1.0 ha. which is economically marginal. It is for this reason why developed countries like US, Japan and Taiwan have moved toward consolidation of farms to gain economies of scale. Only 47 percent of Philippine farm is irrigated hence subject to vagaries in weather. NFA price support for palay remains at P11.00 per kgm for the last 6 years. Because of credit crunch, farmers fall prey to usurers and price manipulators.

With bad predicament like this who wants to be a farmer? Undoubtedly, it would be far better to patronize NFA rice since it is much cheaper than traders’ commercial rice. With 33 million Filipinos living below the poverty line who cares about decent lifestyle as long as it feeds a hungry stomach.
Thanks to the rice crisis, the government is finally putting their acts together. First, a thorough overhaul of the system including the leadership post is in order. It is hard to communicate and deal with someone who hardly knows his trade. Secretary Arthur Yap is practically an outsider to agriculture being a lawyer and a businessman. This is the reason why he got his post earlier as NFA Administrator.

Second, effective management supervision of projects that are technical and dynamic like the DA must be centralized and personnel given enough incentives like salary standardization to boost morale. Past experience of 16 years show crippling effects of devolution and loss of steam in the campaign for food production.

Third, allow free market economy to operate in as far as grain prices is concerned. Open competition favor farmers since price offered by buyers are reflective of current inflation and actual production cost. NFA as a grains procurer/stockfiler must openly compete with private traders offering realistic prices. For big volumes, procurement may be addressed to by grain importation only as a last resort.

Last but not the least, liberal credit based on actual need must be extended to farmers. A novel idea on improving credit standing of farmers is to reward prompt payment say a 10 percent discount on seeds and fertilizer. Those found violating rules and regulation on supervised credit must be criminally charged in court.

Antidote to rice shortage is just practical solution that can bear weight and stay put into the future. /MP