Salceda: Looming food crisis worse than political one

By Ephraim Aguilar
Inquirer Southern Luzon

LEGAZPI CITY--ALBAY GOV. Joey Salceda expects a major spike in food prices to hit the country in the first quarter of this year, warning it could be “a far bigger disaster than the ongoing sociopolitical crisis.”

In a provincial disaster meeting with Albay mayors here, Salceda said hike in the prices of food crops was imminent after oil hit a new high of $103 per barrel in the world market.

Salceda, an economic analyst, said the price in the world market of corn had gone up by 88 percent, coconut oil by 96 percent, rice by up to 54 percent, soybean by 103 percent, soybean meal by 85 percent and wheat by 148 percent.

He foresees the development would adversely affect food prices in the country and its effects, especially on the poor, would be felt as early as this month.

“At this point, people might not feel (the effects of the food crisis) yet because we are still using our cheap inventory. But once the government has run out of stock, it will be very challenging for the poor,” Salceda said.

He said the looming food crisis also poses a big challenge to the administration – how to mitigate hunger and put more money in people’s pockets.

However, Salceda was confident the administration was focused on addressing the issue, citing the Arroyo administration’s track record of having been able to lower the hunger rate in the fourth quarter of 2007, at the same time self-rated poverty was reported at its lowest level.

“The government, with or without the sociopolitical context, must simply address the food security problem by putting in place additional resources to increase agricultural production,” Salceda said.

The three-term former Albay congressman said urgent countermeasures would have to be implemented like lifting some tariffs on imported food crops, increasing food subsidies; augmenting the budget for agriculture, reducing import duties on soybeans, wheat and corn, and enacting the cheaper medicines law.

“As an economist I haven’t seen this for the longest time where everything is all happening at the same time – rising oil prices, receding US economy and increasing food prices,” Salceda said.

He said he was seeing stagflation, where there are “lower volumes and yet higher costs,” which is risky to the economy.

Salceda told the Albay mayors not to “neglect their social services.”

“Even while the nation is trying to sort out political tensions, local government units must continue to prepare strategies to confront the emerging food crisis,” he said.