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Showing posts with label food crisis. Show all posts
Showing posts with label food crisis. Show all posts

Saturday, July 12, 2008

P18-per-kg rice disappears from markets

LEGAZPI CITY—SUPPLY OF the cheapest government-subsidized rice, the P18.25-per-kilo variety, has been gradually disappearing in urban markets in the Bicol region since Thursday.

Lawyer Jose Guevarra, assistant regional director of the National Food Authority in Bicol, said the NFA was removing the low-priced variety from commercial markets to focus its distribution among the “poorest of the poor.”

He said starting July 14, only the P25-per-kilo variety will be sold in public markets here.

Distribution of the P18.25-per-kilo rice variety will be limited to poor beneficiaries identified by village officials and the Department of Social Welfare and Development.

Guevarra said only the NFA rolling stores, DSWD Kalahi stores, Tindahan Natin, and Tindahan sa Parokya will be authorized to distribute the P18.25-per-kilo rice variety.

Guevarra, however, dismissed reports that a shortage was forcing the NFA to remove this type of rice from public markets.

“The public market is a converging point of all kinds of consumers. We want to limit subsidized rice distribution to those who really need it,” he added.

He added that Bicol was a priority recipient of monthly rice shipments from Vietnam and Thailand and has a supply of 1.6 million bags to last for 88 days.

“We have received early arrivals of rice imports in the first two quarters of the year since Bicol is calamity-prone. The remaining months are expected to be the typhoon season,” Guevarra said.

Guevarra said the prices of commercial rice still ranged from P33 to P42. He said rice prices were the result of prices of fuel and other basic commodities. Ephraim Aguilar, Inquirer Southern Luzon

Friday, May 16, 2008

NFA closes 200 rice outlets in Bicol

LEGAZPI CITY—THE National Food Authority (NFA) closed at least 200 retail rice outlets in Bicol for overpricing, hoarding and other violations, NFA officials said yesterday.

Jose Guevarra, NFA assistant regional director, said 48 outlets were closed in Albay, 46 in Camarines Sur, 39 in Sorsogon, 32 in Camarines Norte, 30 in Catanduanes and five in Masbate.

Guevarra said the retailers were also facing other charges, like violations of the Consumer Act. Their accreditation have either been indefinitely suspended or cancelled outright, he said.

The most common offense was overpricing. Guevarra said some retailers sold government rice at P25, higher than its original price of P18.25.

Overpricing

“The selling without price tags is an attempt to fool the consumers while rice diversion involves the rebagging of NFA rice. Both boil down to overpricing,” Guevarra said.

He cited a 20-percent increase in the number of violators in late March, when the government became stricter in monitoring the distribution of rice.

By mid-April, he said, the number decreased, indicating the success of government monitoring.

Guevarra said the NFA quickly approved new permits to sell to retailers to ensure no disruption in distribution. Bicol has around 3,000 accredited rice outlets.

Three high-ranking NFA officials in Bicol are also facing administrative charges for allegedly colluding with dishonest traders.

Flood of complaints

Their cases were still being heard at the provincial level, where there are internal auditors, an investigation and prosecution directorate, and a hearing officer, Guevarra said.

He said the NFA had been receiving complaints through anonymous phone calls, letters and media reports. All are subject to investigation.

As of yesterday morning, Bicol had a buffer stock of 687,000 bags of NFA rice, good for 54 days.

An additional 304,000 bags are expected to arrive aboard two cargo ships at the Tabaco City International Port this weekend.

Maria Asagra, 38, of Barangay Cabagñan in Legazpi City is a constant buyer of government rice from the NFA truck that tours villages weekly.

She said she had never been a victim of overpricing since she was buying directly from the NFA. “I don’t buy NFA rice from the public market since the queues there are longer,” she said.

She said around 200 villagers in their place would buy rice from the NFA truck every Tuesday, the schedule of distribution in Cabagñan. Tickets are being distributed to the buyers.

Every purchase is limited to 4 kg but, Asagra said, she and her daughter would line up so the family would get 8 kg.

Guevarra said the price of commercial rice as of Tuesday ranged from P29 to P32 per kg, depending on the variety.

Rice supply worldwide was predicted to be tighter as a cyclone devastated rice farms in Burma and further put pressure on world supply of the staple.

The Philippine government effort to obtain bids for rice suppliers from Thailand and Vietnam failed as no bidder from either country took part in a recent tender. Ephraim Aguilar, Inquirer Southern Luzon

Thursday, April 10, 2008

Salceda calls Bohol gov ‘parochial’ on rice

By Ephraim Aguilar
Inquirer Southern Luzon

LEGAZPI CITY--GOV. JOEY Salceda slammed the executive order signed Monday by Bohol Gov. Erico Aumentado regulating Bohol’s outbound rice shipment, calling it a “very parochial” move.

The executive order allows large traders, as classified by the National Food Authority, to ship only 500 sacks (at 50 kg each) in a week while each medium and small trader can ship 300 sacks and 100 sacks, respectively, every week.

Aumentado issued the order after he received reports from rice traders about the abnormal buying trend for husked and milled rice by dealers from other provinces, which, he said, would prejudice the supply of rice in Bohol.

Salceda asked Aumentado to reconsider the order restricting the export of Bohol’s rice output and the Department of the Interior and Local Government to strike down the executive order.

“My province is a major rice producer but our big population results in annual deficit of 1.6 million bags,” Salceda said.

“While it is given that it is the duty of governors to protect the welfare of their people in securing their food needs, the best way to achieve that is to cooperate with national authorities,” he added.

Bohol is the top producer of rice in Central Visayas with a production of 167,411 metric tons of rice in 2007, according to the Department of Agriculture.

Salceda said that even if Aumentado cited the General Welfare Clause of the Local Government Code of 1991 as the basis for issuing the executive order, it could only worsen a precarious national situation.

“It would impede trade and increase the national required buffer. It would further heighten price pressures. The consequences are unacceptable,” he said.

“We’re all in this together. Everyone should do his share to help solve this crisis,” he added.

NFA stops use of ‘indelible’ ink to mark rice buyers

By Ephraim Aguilar
Inquirer Southern Luzon

LEGAZPI CITY--THE NATIONal Food Authority in the Bicol region has called off the use of “indelible” ink to mark the fingers of buyers of government-subsidized rice after the scheme drew sharp criticisms.

Jose Guevarra, assistant NFA regional director, said the agency had been hearing comments from various sectors and the media that the ink-staining of buyers “demeans the poor,” who are queuing for the cheap rice because they cannot afford the commercial varieties.

Commercial rice is now being sold from P28 to P34 per kilo here.

NFA rice is still pegged at P18.25 per kilo, but buyers are still limited to three kilos.

“We have been receiving many calls from the public. Many were asking why it was necessary to use indelible ink,” Guevarra said.

He explained it was not the intention of NFA retailers to offend the poor but to prevent repeat purchases by the same person on the same day.

Guevarra said the NFA had given orders yesterday, through rice trade organizations like Grecon, to call off the use of indelible ink starting Thursday.

“We have to be sensitive and considerate of public opinion,” he said in a mobile phone interview.

He said the NFA office in Bicol also advised retailers to devise other plans to prevent certain buyers from cornering rice stocks.

“Now we see that the most we can do is to appeal to the public to help authorities ensure equal distribution of government rice,” Guevarra said.

Philippine National Police Director General Avelino Razon yesterday said he would order an investigation of the use of “indelible” ink, saying that it could be a hoax circulated to cause panic.

Guevarra said the Bicol region was expecting the delivery of 134,000 bags of rice from Vietnam this Friday and another 204,000 bags on April 16.

The NFA sells 9,112 bags of rice daily in the region, he said.

Wednesday, April 09, 2008

‘Indelible’ ink marks NFA rice buyers

By Ephraim Aguilar
Inquirer Southern Luzon
and Jhunnex Napallacan
Inquirer Visayas and Christine O. Avendaño

NOWADAYS, A FINGERNAIL MARKED with ink is one sign that someone is poor, who buys government-subsidized rice.

“Indelible” ink is being used in the Bicol region not to guard against flying voters, but to mark consumers who are each entitled to buy one kilogram of cheap rice per day.

The “indelible” ink referred to by the National Food Authority (NFA) is the ink from stamp pads that its accredited retailers use to identify repeat buyers.

In Cebu province, some retailers are using pens to mark the fingernails of those who bought NFA rice from them.

These measures are being adopted to prevent consumers from acquiring subsidized rice more than their daily quota—up to three bags of one-kg rice pack at the NFA and one bag at an NFA-accredited retailer.

Prices of rice have soared because of a tight global supply that is aggravated by hoarding.

Saying there was no cause for panic amid the rising prices of rice, President Macapagal-Arroyo yesterday assured the nation that her administration was pursuing an action plan to ensure that the “rice situation remains stable.”

The plan includes a crackdown on those diverting rice supplies and “pervert(ing)” the price of the staple.

Ms Arroyo said she would lead the charge against unscrupulous rice traders.

“Anyone caught stealing rice from the people will be thrown in jail,” she said at the start of her weekly meeting with the Cabinet.

In a speech aired live on government television and radio, Ms Arroyo said the government was taking “decisive action” to prevent the global rise in the price of basic commodities like fuel and rice from becoming a crisis in the country.

She underscored the importance for the public to “understand what exactly the situation is and what we are doing about it.”

Don’t panic

“It would be unfortunate if panic overtook logic, for we will endure and survive this moment and come through it stronger,” Ms Arroyo said.

Jose Guevarra, assistant NFA regional director in Bicol, yesterday said that retailers had initiated the marking scheme to regulate the distribution of NFA rice to consumers waiting in long queues.

Despite the limit, people still find ways to go around it.

Guevarra said some consumers would have other family members line up for the NFA rice, which is being retailed at P18.25 per kilo.

“There are families with six members lining up to buy rice. Some people end up cornering the stocks. We need to distribute the commodity evenly,” he said.

He said rationing could be observed primarily in Legazpi City and other urban centers in the region.

Stable supply

Guevarra said there was no rice shortage yet in Bicol but defended the rationing of government rice, saying that the price of commercial rice is very high.

“People would, of course, choose the cheaper commodity. The NFA rice is still P18.25 per kilo while the commercial one would range from P28 to P34,” he said.

As of Monday, the NFA in Bicol still had 380,000 bags of rice, equivalent to a 44-day supply.

Exactly 134,000 bags of imported rice from Vietnam, good for 15 days, are to be delivered tomorrow at the Tabaco City port by two ships.

The NFA in Bicol tries to maintain a 56-day buffer stock for disaster contingency as the region lies on the typhoon belt, according to Guevarra.

Repeat customers

In Cebu province, NFA retailers have started selling a limited volume of rice to each buyer even as they marked fingernails to prevent repeat customers on the same day.

Some retailers, especially in Carcar City, have started using marker pens to mark the fingernails of those who bought rice from them, said Edgar Diez, NFA enforcement officer in Central Visayas.

The NFA has also tapped two parishes and increased rice allocations for “Tindahan Natin” outlets to serve the growing number of people lining up to buy the subsidized rice.

Church outlets

Diez said two parishes, one in Cebu City and the other in Bogo City, began distributing rice to consumers through the “Tindahan sa Parokya.”

The NFA regional office will tap more parishes to ensure that the low-income consumers can buy cheaper rice, Diez said.

He also announced that the regional office had decided to give additional allocation to Tindahan Natin (TN) outlets in the region because of the current situation.

The NFA regional office increased the rice allocations for all TN outlets from 15 bags to 20 bags per week because of the large number of people lining up to buy the cheaper rice, he said.

Diez said customers were allowed to buy from the authorized retailers one kilo to three kilos of NFA rice depending on the number of family members.

An official of the Catholic Church in Cebu said the Archdiocese of Cebu was ready to join in the distribution of the cheap rice to poor consumers.

But Msgr. Achilles Dakay, media liaison officer of the Cebu Archdiocese, expressed apprehension over reports that the government might consider distributing condoms to help solve the reported rice shortage.

Dakay made the comment after he heard Rep. Edcel Lagman pointing at the rising population as one of the causes of the rice shortage.

Three phases

In her speech, the President said the action plan consisted of three phases—securing rice supply, ensuring proper distribution, and enforcing laws to protect people against price gouging and corruption.

Saying that the country’s rice supply was “secure for the foreseeable future,” Ms Arroyo noted the recent arrival of 500,000 metric tons of rice from Vietnam and Thailand.

A total of 700,000 tons of rice from Vietnam, Thailand and Pakistan is expected to arrive this month, in May and in June, she said.

Public bidding

There will be a public bidding on April 17 for 500,000 tons of rice arriving in May, June and July, and another bidding for the balance of 500,000 tons in May for rice deliveries in June, July and August.

Mosques

To ensure proper distribution of rice, Ms Arroyo said that the government was seeking the help of the faith-based-community churches and mosques to help deliver the rice, especially to the poor.

Malacañang will submit to Congress a proposed Consumers Bill of Rights “that will help protect and defend consumers while strengthening penalties against those individuals or entities that abuse the right of our people to this basic commodity.”

Thursday, March 27, 2008

Albay gov pushes austerity to build rice buffer stocks

By Ephraim Aguilar
Southern Luzon Bureau
First Posted 17:30:00 03/27/2008
INQUIRER.net

LEGAZPI CITY, Philippines--Despite assurances by the government that there is no rice shortage, Albay Governor Joey Salceda, a key economic adviser to President Gloria Macapagal-Arroyo, is implementing austerity measures to generate savings for strategic rice buffer stocks.

Salceda said the Albay provincial government will impose a 10-percent reserve on Maintenance and Other Operating Expenses (MOOE) and a moratorium on the purchase of information technology equipment and motor vehicles.

To begin April 15, the austerity measures are expected to generate some P16 million to be spent for food security, said the governor.

“The savings generated will be earmarked for a strategic rice buffer. We have to ensure access of poor families to rice,” Salceda said.

However, lawyer Jose Guevarra, assistant regional director of the National Food Authority (NFA) in Bicol, said it is not yet necessary for such measures.

He said Bicol still has 480,000 bags of rice, which is good for 55 days. On April 2, 120,000 more bags from Vietnam are expected to arrive in the region.

“We have no problem with supply, you can see it in the markets. However, long queues might be seen on government rice, not because of shortage, but because commercial rice has increased [in price] to as much as P32,” Guevarra said.

Agriculture Secretary Arthur Yap, in a visit to Libmanan, Camarines Sur early this week, said there was no rice shortage, but only an increase in prices of the staple because of hiked fertilizer and oil prices.

"The price of fertilizer has increased by 150 percent while the price of oil in the world market has reached more than $110 per barrel," Yap said.

In Bicol, a ranking NFA official disclosed last year, unscrupulous traders are reportedly able to purchase as many as 1,000 bags of rice from the NFA at a higher price, re-mill this and sell it in markets for a hefty profit.

Yap said the NFA has began investigating officials suspected of colluding with unscrupulous traders.

Gueverra said they will not tolerate NFA employees involved in this anomalous trade but stressed that due process has to be observed. He said there are NFA officials in Naga City who are currently under investigation while their manager has been reassigned.

Earlier this week, the national government ordered the immediate re-licensing of rice traders nationwide.

There are over 3,000 rice traders in Bicol.

Guevarra said the re-licensing is aimed at getting rid of “fly-by-night” traders without affecting the current distribution system.

“The revalidation of license will make it easier to track unscrupulous traders who may be licensed but do not have outlets and stores, or who may have these facilities but have already stopped using them,” Guevarra said.

In terms of rice production, the provinces of Albay and Sorsogon in Bicol are self-sufficient while Camarines Norte, Masbate, and Catanduanes are deficient.

The only surplus area is Camarines Sur, which ranked No. 7 in the 2007 crop year, having produced a total of 560,809 metric tons.

Yap boasted of a 16.3-million metric ton increase in rice production in 2007, which, he said, was a record high.

Monday, March 24, 2008

‘I never told Filipinos to eat less,’ says agriculture chief

By Ephraim Aguilar
Southern Luzon Bureau
First Posted 17:55:00 03/24/2008
INQUIRER.net

LIBMANAN, Camarines Sur, Philippines--Agriculture Secretary Arthur Yap clarified here on Monday that he never meant to tell Filipinos to eat less when he urged fastfood outlets last week to offer half portions of rice because of a looming rice shortage.

"I never told Filipinos to eat less," said Yap, who was here in Camarines Sur province to grace the launching of the Church-formed Bicol Sustainable Agriculture Network (BiSAN).

Yap said it is every citizen's responsibility to conserve rice, especially that 25,000 bags of rice are wasted every day, based on a study by the Food Nutrition Research Institute of the Department of Science and Technology.

Yap said it was the National Food Authority's suggestion that he urge fastfood outlets to offer a "half-rice-serving" option to its consumers who cannot consume whole-rice serving.

However, he said, he did not do it because of an impending rice shortage but because conservation would be of big help amid spiraling prices of food commodities.

Yap said there was no rice shortage, but only an increase in prices of the staple as caused by the increase of fertilizer and oil prices.

"The price of fertilizer has increased by 150 percent while the price of oil in the world market has reached more than $110 per barrel."

Senators warned on Sunday that an impending rice crisis might backfire politically if government failed to devise effective solutions to prevent rice scarcity.

Senator Manuel Roxas III on Monday also told the government to "get real" about the rice shortage problem and not to downsize the rice problem, which, he said, should be treated as a "calamity."

Yap, however, said simple market visits would tell if there is really an impending rice shortage.

"If you go to markets, do you ever see food rations and long (queues) of consumers? There is much supply of rice in varying prices and qualities," Yap said.

He also said harvest was increasing and boasted of a 16.3 million-metric-ton increase in rice production in 2007, which, he said, was a record high.

Yap said the NFA had committed 1.1 million metric tons of rice while a contract would be sealed with Vietnam on its commitment to import one million metric tons of rice to the country.

Yap said that despite an increase in harvest, production was still not sufficient, so distribution of rice in the market had to be strictly monitored by the NFA.

He said the NFA had begun investigating all its officials colluding with unscrupulous traders, who re-bag and re-mill government rice and sell it under commercial rates.

He said the country had a rice deficit of around 1.5 million metric tons of rice but was still 90 percent self-sufficient.

The BiSAN, a joint project of the Prelature of Libmanan Development Foundation Inc. and the Department of Agriculture, aims to support Bicol farmers and to promote organic farming.

Friday, March 14, 2008

Yap says GMA has Vietnam vow for rice

LEGAZPI CITY--PRESIDENT Macapagal-Arroyo has secured a commitment from Vietnam to supply rice to the Philippines so there is no cause for concern over reports of a food crisis, Agriculture Secretary Arthur Yap said.

Yap said his department’s main concern now was how to keep food prices down.
He said the commitment from Vietnam would help assure enough rice supply.
Early this month, Albay Gov. Joey Salceda, economic analyst and Ms Arroyo’s key adviser, said the country would face a food crisis starting this month, warning it could be “a far bigger disaster than the ongoing sociopolitical crisis.”

Salceda said the increase in prices of food crops was imminent after oil prices hit new highs this month.

Oil struck a record $109.20 per barrel on Tuesday.
Salceda said the price of corn in the world market 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.

Yap, in a press statement sent to the Inquirer, however, said he did not see the food crisis, which would mean “an absence of food or rationing and food lines.”
He said the DA was confident that the 2008 rice production target of 17.33 million metric tons, which is equivalent to a 92-percent national sufficiency level, can be met.

He added that, based on field reports, palay planting schedules were on track while rains brought by the onset of the La Niña phenomenon would benefit farmers in over a million hectares of land.

He admitted, however, that one area of concern was the spike in the prices of rice as caused by spiraling prices in the world market.

“Demand is growing but supply is not catching up that much because of climate change. We have to accept that climate is really changing,” Yap said. Ephraim Aguilar, Inquirer Southern Luzon

Monday, March 03, 2008

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.

Tuesday, February 26, 2008

Food shortage looms in isolated town

LEGAZPI CITY—HOW TO SUSTAIN the food supply in Manito, a town still isolated for the past six days by landslides from the rest of Albay, is enough reason for worry for Mayor Caesar Daep.

Several portions of the Legazpi-Manito road have been blocked by eight landslides on Thursday.

Gov. Joey Salceda said that without access to commodities that the town normally buys here, Daep had been asking for help to prevent looming hunger.

“Even the mayor admitted to eating cassava. That is why we have launched SOS Manito to address their immediate needs,” Salceda said.

Manito is a fourth-class municipality (annual income: P20 million-P30 million) with a population of 24,000.

On Saturday, the provincial government sent P1.2 million worth of relief goods, consisting of 600 sacks of rice, 250 boxes of sardines, and 600 boxes of noodles.

In a phone interview on Monday, Daep said food packs of five kilograms of rice, five cans of sardines, and seven packs of noodles had been distributed to the families.

Daep said he was worried about the food supply since prices of prime commodities had increased due to transport difficulties.

The products were being delivered by motor boat from the Legazpi port.

“This has drastically increased the prices of commodities, which the townspeople may no longer be able to afford. We really need to restore the road as soon as possible,” Daep said.

Disaster officials and engineers on Monday conducted an aerial inspection as part of their study on how to restore the damaged road network.

Salceda said it might take the government about P17 million to clear and reconstruct the washed-out road sections. “Restoring normal road transportation may take week or even months apart from fund sourcing and procurement,” he said.

Earth cracks

Daep said alternative boat rides for commuters are hardly available during low tide since the Manito port is heavily silted due to the landslides.

In Camalig town, 73 families were evacuated Monday morning after cracks were reported along a road in Barangay Baligang.

Although the cause of the cracks had yet to be identified by the Mining and Geosciences Bureau Bicol office pending area surveys, Salceda theorized that the road could have been saturated with water following a week of continuous rains and floods.

Cracks along a mountain in Barangay Ilawod, also in Camalig, were also sighted, causing the temporary relocation of the villagers, said provincial disaster coordinating council head Cedric Daep.

These incidents occurred in the calmer weather that followed after the nonstop rains, Daep said.

“These post-event hazards are indicative of geomorphological changes. The landscape of Albay is changing because of weather disturbances,” Salceda pointed out.

Aside from Camalig, the provincial government is also closely watching the town of Libon and Sta. Cruz village in Polangui, where aerial surveys showed wide expanses of rice fields still submerged in water.

With the exception of these areas, as well as Manito, decampment of evacuees were ongoing throughout the province.

All roads are now passable in Albay save for the Legazpi-Manito road, reports from the PDCC showed. Ephraim Aguilar and Jaymee T. Gamil, Inquirer Southern Luzon