Rice trading policy needed for self-sufficiency - Oxfam

MANILA, Philippines – The Philippines would have achieved self-sufficiency in rice production in 2009 had the government invested at least P59 billion in agriculture in the past three years, an international aid agency said on Thursday. "If we had invested P60 billion in five years, we would have achieved 100 percent self- sufficiency (in rice production)," said Kalayaan Pulido-Constantino of Oxfam-Philippines, citing a study by Philrice, an agency attached to the Department of Agriculture. The dearth in investments for agriculture and the lack of a coherent rice trading policy are among the factors that caused rice shortages, said officials of Oxfam, an international aid agency, during the launch of "Double-Edged Prices: Lessons from the Food Crisis." Instead of strengthening local agriculture, the country resorted to importation. "Even now we do not have a coherent rice trade policy. This has brought us into this vicious cycle of external supply and made us vulnerable to the world market," said Lan Mercado, Oxfam-Philippines country director. Mercado observed that the lack of assistance to small-scale rice farmers, the backbone of the country's food supply, led to a shift to more lucrative crops. Since 2002, at least 9,000 hectares of prime rice lands were converted into commercial lots or plantations for plant species that could be turned into biofuel. Ed Santoalla, Oxfam-Philippines economic justice program manager, said the lack of policies on rice production discouraged farmers from planting rice. "The problem with this (lack of) policy is it provides a disincentive to rice farming," he said. "Walang investment support, walang marketing assistance, walang farm-to-market roads." "A rice trading policy should be in place so that rice farming can be a good proposition for all," Santoalla said. Policy review During a policy forum on food security and agricultural production last Tuesday, some of the country's key agriculture officials admitted that they resorted to short-term solutions such as massive rice importation during the rice crisis early this year, said Mercado. "In hindsight, what was lacking was foresight," she said. The government officials, which include Albay governor and Presidential Adviser on Economic Affairs Joey Salceda, National Food Authority spokesman Rex Estoperes, and Department of Agriculture Rice Program director Frisco Malabanan, have all vowed to review the government's rice policy. "They do feel that they really have to sit down and review the rice policy," said Pulido-Constantino. The Arroyo administration's Medium-Term Agricultural Developlment Plan for 2004-2010, which calls for the opening up of one million hectares of land to new agribusiness such as biofuels, only favors large plantation-type farming, said Santoalla. The large plantations that produce high-value crops such as coconut and sugarcane earn more dollars in the world market compared to rice and corn. Santoalla said that in the long run it is better for the government to focus on strengthening local rice and corn production and assisting local small-scale farmers. "It really boils down to the utilization of public resources.," said Santoalla. Food security will be assured if the government expands lands for rice production, which they said are less than those in other Asian countries. Oxfam's Pulido-Constantino said the Philippines is currently allocating only 4.1 million hectares for rice production compared to Vietnam's 7.4 million. Mercado said it would do well for the Philippines to follow its Asian neighbors like Vietnam and Thailand. "Things can change. There's no dearth of models to follow," said Mercado. High prices to stay Unless there are significant improvements in the way the government handles rice production and trading, the high cost of rice will continue. "Unless we implement (new) policies and increase investments, the Philippines and the Filipino people will always be threatened by the increase in prices," said Mercado. She said that while rice prices have stabilized, it is still beyond the reach of the majority of poor Filipinos. "High prices are here to stay across the world. It is a more stable situation…but policies take time to be developed and implement. In agriculture, it takes time to convert to real results," said Ines Smyth, Oxfam Global Gender Advisor. Smyth said the current global financial situation has created "an environment not exactly amenable to quick solutions." In its position paper on Philippine food prices, Oxfam called for the following medium and long-term policy actions: to calibrate the NFA's rice import operations with the end view of ensuring enough supplies during lean production months while protecting farmers' incomes during harvest season; to develop and put in a place a "coherent and clear-cut policy" on rice trading; and to increase public spending in agriculture; and the recognition of women's role in agricultural production. Oxfam also called on the government to rationalize public finance policy, saying there must be a balance between debt servicing and provisioning for basic services. "This is probably the time for the Arroyo administration to make good on its promise to make a lasting legacy that will go beyond her term," Santoalla said. - GMANews.TV