How to support the hands that feed us
Rice nations like Thailand and Vietnam may stop exporting if the global rice shortage becomes serious. We will be forced to depend on our local farmers more.
According to rice farmers, a reasonable increase in rice/palay prices, as proposed by the National Food Authority, goes a long way to keep them afloat without too much burden on the part of consumers. We can consider this as an ingenious form of "rice subsidy" from consumers in behalf of the farmers who feed them.
Overimporting rice results in lower rice prices to the detriment of the farmers. We can actually kill our rice productivity by over importation. But the problem is two-fold. First, there are vested interests who get big profits from imported rice. Second, there is a gnawing fear that a rice shortage would backfire on the government, on PBBM and the NFA.
So, we need to walk a tightrope between overimportation, inducing a glut, and underimportation, inducing a shortage, with an awareness of support for rice farmers. It is not an easy job.
Dr. Ted Mendoza, retired crop science professor at University of the Philippines-Los Baños, says the harvest season just started, with NFA setting the price "sobrang baba at P19/kg dry = P16/kg direct from the thresher. Lugi or breakeven lang farmers (low price resulting in farmers breaking even or selling at a loss). It should be P22/kg from thresher or P25/kg dry na."
Perhaps, NFA heard the voice of Prof. Ted and the Alliance for Resilience, Sustainability and Empowerment, supporting the agency's new plan for a price increase to a reasonable P22/kg for cleaned palay, or P25 for dried palay. This will give farmers earnings of "not less than P10/kilo. Anything less would badly hurt the farmers."
The quick reaction from the NFA is perhaps due to PBBM sacking officials from the Sugar Regulatory Administration. All of a sudden, the import agencies are on their toes, more scared to overimport to protect our agri-industries, rather than underimporting that might induce a shortage.
NFA, however, cannot buy all the farmers' rice. Traders buy the rest, but their prices are way too low. PBBM through the DA can simply impose a minimum buying price for traders based on the NFA price.
ARISE convenor director Arze Glipo hopes legislators and local governments can get additional NFA from the Land Bank of the Philippines, which has reportedly expressed willingness to offer loans to farmer associations. Glipo adds "It is far more beneficial if the DSWD buys palay directly from the farmers, or include farmer families as beneficiaries of ayuda, as they really are deserving of the government's doleouts."
