NFA downplays rice price hike fears

The National Food Authority (NFA) on Wednesday downplayed fears that a weakening dollar will push up prices of rice, saying the country's rice supply is stable at least up to the first quarter of 2010. NFA spokesman Rex Estoperez said there are 1.45 million metric tons of rice in the agency’s inventory, which he said will ensure sufficient supply of rice until then. "Sa ngayon ang panahong ito until the first quarter of next year mukhang wala tayong problema sa supply at saka presyo (If we are thinking of the long term, it is possible we may be affected. But for now until the first quarter of next year, we do not see problems in supply and price)," Estoperez said in an interview on dzBB radio. He was referring to reports quoting the International Rice Research Institute (IRRI) as saying that the weakening dollar may push up prices of rice and other commodities. Contesting the report, Estoperez said a weak dollar may even bring down prices of rice, especially if accompanied by the strengthening of the peso. "Titignan natin ang ating sitwasyon sa ngayon, ang sinasabi natin dapat magtulungan tayo. Pero sa ngayon e maganda naman ang ating imbentaryo at maganda ang ating production, huwag lang tayo tamaan ng kalamidad (Let’s look at our situation. For now, our inventory and production are in good shape, barring any calamity)," he said. Estoperez also said the NFA’s policy allowing the private sector to import rice has helped ensure supply. On the other hand, he said the NFA’s threat to bombard the market with subsidized rice has so far kept private rice traders from jacking up their prices. "Kung titignan natin, ito lahat speculation at lahat yan projection, pwedeng mangyari at di mangyari. So lahat na iniiwasan natin ngayon palakasin natin ang production at kung mangyari man yan nakahanda tayo sa anumang epekto nito (If we look at it, all this is speculation and projection. It may happen, it may not. In the meantime, we will continue to strengthen our production and prepare for any eventuality)," he said. The IRRI’s publication “Rice Today" had said a weak US currency is expected to put fresh pressure on rice prices just a year after a global supply crunch caused the cereal to rocket above $1,000 a ton. IRRI also reported that there is a “sense of false comfort" as the price of the staple falls back to normal levels. Exporters of lower grade rice “find it hard to look for markets" while the financial crisis has pinched credit and importers are taking a “cautious approach to stock-building," it said. But the institute said the dollar was expected to “weaken in the coming months" as US debt builds up and fiscal policy spending puts more pressure on the currency, which it said leads to a “dollar trap" where “the value of several countries’ reserves will become lower." The NFA has stepped up its purchase of rice from local farmers since mid-2008 following a rice supply crisis that jacked up retail prices in the local market. - GMANews.TV