IBON News /  April 2, 2008
Reference: Ms Rosario Bella Guzman

REINSTATE NFA POWER TO HELP ADDRESS RICE CARTEL
 
 
Independent think-tank IBON Foundation called on the National Food Authority (NFA) to intensify its procurement of local palay rather than importing more rice from abroad in order to address the rice crisis.
 
In 2006, NFA procured just 73,078 metric tons (MT) from local farmers, or less than 1% of total production of 10 million MT while contracting 1.6 million MT of imported rice from Thailand, Vietnam and Pakistan. Government plans to import some 2 million MT of rice this year.
 
Increased NFA procurement would prevent rice traders and cartels from taking advantage of local farmers. It would also increase farmers' incomes.
 
The semi-privatization of the NFA through the reduction of its functions under the Ramos administration had helped lead to the manifestation of the country's chronic rice crisis in 1994-1995 when the rice cartel hoarded supplies and jacked up prices by 90% to 100 percent. During this period the country experienced a bumper rice crop of 11 million MT, while NFA procurement was down to 0.5% of total production.
 
But increased procurement was only a short-term measure to help alleviate price concerns and should be augmented in the long-term by moves to address moribund local rice productivity and farmers' problems through subsidies, reversal of tariffs, and a genuine land reform program. (end)
 
 
IBON Foundation, Inc. is an independent development institution established in 1978 that provides research, education, publications, information work and advocacy support on socioeconomic issues.
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