Tag Archives: rice importation

Criminal charges pressed against Manila officials behind rice scam

By Gerry Albert Corpuz, Gegemon Babon and Roy Morilla

MANILA, Philippines- The peasant activist group Kilusang Magbubukid ng Pilipinas (KMP), the multisectoral alliance Bantay Bigas, the Katipunan ng mga Samahang Magbubukid ng Timog Katagalugan (Kasama-TK) and the leftwing fisherfolk alliance Pambansang Lakas ng Kilusang Mamamalakaya ng Pilipinas (Pamalakaya) on Friday urged National Food Authority (NFA) chief administrator Lito Banayo to file criminal and other appropriate charges against former President and now Pampanga Rep. Gloria Macapagal-Arroyo and former agriculture secretary and now Bohol Rep. Arthur Yap in connection with the over importation of rice which occurred in 2004 and 2007.

Peasant leaders Willy Marbella, deputy secretary general of KMP, Bantay Bigas convener and Amihan peasant women federation secretary general Lita Mariano, Kasama-TK secretary general Axel Pinpin and Pamalakaya national chair Fernando Hicap led 100 farmers and supporters’ rally outside the NFA outlet in Visayas Avenue in Quezon City asking the NFA chief to charge Arroyo and Secretary Yap before the regular court.

Marbella said aside from Reps. Arroyo and Yap, the charge sheet should include former officials of the Department of Agriculture and NFA who played key roles in the over importation of rice in 2004 and 2007 which cost Filipino taxpayers some 171.6 billion pesos.

In 2004, the Philippine government imported 900,000 metric tons of rice, while the country at that time only lacked 117,000 metric tons to fit the demand of the population, while in 2007, the government only needed 589,000 metric tons to fill the gap in rice supply, but DA and NFA pursued the importation of 1.827 million metric tons or about 1.2 million metric tons more of the required volume to augment the shortage in rice supply.

The rural based groups said aside from bringing the perpetrators of over importation of rice in exchange for fat or juicy commissions, the NFA and the DA should impose a six-year moratorium on the importation of rice and instead pursue measures that would increase domestic rice production, stop land use conversions of rice lands and assure irrigation for more than 3 million hectares of lands devoted to rice production.

They said, instead of reducing rice lands, the government should promote and increase rice lands devoted to rice and food production.

Procurement capacity

For her part, Mariano of Bantay Bigas and Amihan peasant women group urged Aquino government to increase the buying capacity of NFA to 25 percent of the total domestic produced palay by local rice farmers to stabilize rice prices and ensure good dividends for rice farmers.

Mariano lamented that while NFA is mandated by law to buy 10 percent of the locally produced palay from farmers, the authority only managed to buy one percent, and the rest of the funds of the NFA are allocated for unbridled importation of rice.

She said the NFA should increase not only its buying capacity, but also the price of palay per kilo. At present, Bantay Bigas wants the NFA to procure palay at P 15 per kilo, instead of spending taxpayers money to rice importation at the expense of Filipino farmers and consumers.

The groups said rotten and contaminated rice should not be distributed to poor Filipinos, saying the poor do not deserved rotten and unsafe rice for consumption. The groups said it would be grossly insulting and highly revolting to feed the poor with unsafe and health risk rotten rice.

Which is which?

But the groups asserted the unused and undistributed stocks of rice in government warehouses which are sound and still safe to eat should be distributed for free to communities affected by typhoon, including calamity stricken areas hit by Ondoy and Pepeng, and the El Nino and La Nina affected areas.

“In print media, Banayo of NFA said he will strongly consider the demand of farmers to have these hundreds of thousands of metric tons of rice distributed for free to poor Filipinos. But in TV and radio, the NFA chief said the authority will not give free rice to hungry families and multiple conditions shall be met to have these sacks of rice distributed either through food for work program or other measures,” noted Hicap of Pamalakaya.

” Which is which? Are Banayo and his puppet master in Malacanang taking us to another roller coaster ride?” added Hicap.

The Pamalakaya leader said Department of Agriculture (DA) secretary Proceso Alcala should step into the picture and stop the NFA from talking non-sense , adding that the agriculture department has the last way on what to do with the over imported rice.

“Alcala should tell Banayo to shape up or leave NFA. The demand is as easy as ABC. Make an inventory and proceed with the free distribution of these sacks of rice for free at the immediate, ahead of the next harvest season this coming October. Is that difficult? Mr. Banayo and his benefactor in Malacanang are making things difficult and complicated for the Filipino public.,” said Pamalakaya.

Earlier, the KMP, Pamalakaya and other rural based groups demanded Senate President Juan Ponce Enrile and House Speaker Feliciano “Sonny” Belmonte to conduct joint or separate congressional inquiry on the over importation of rice in 2004 and 2007.

The groups said in aid of legislation, the rice inquiry will be able to draft policies to stop the government from anarchic importation of rice which are hinged on the liberalization policy and on the agenda of corrupt officials for juicy and fat commissions sourced from over importation and over pricing of rice imports. (With reports from Bombshell Moran and Lollipop de los Reyes)

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KMP nixes decline in rice output

By the Kilusang Magbubukid ng Pilipinas

Manila, Philippines-The militant Kilusang Magbubukid ng Pilipinas (KMP, Peasant Movement of the Philippines) raised that government is exaggerating the effects of “El Nino” to justify huge increases in rice imports, estimated to reach 3 million metric tons (MT) exceeding the previous limit of 2.4 million MT. Also, the group said that non-irrigation is a chronic problem in rice cultivation ever since and should not be totally blamed to “El Nino.” The group said that the National Irrigation Administration (NIA) has only irrigated 1.4 million hectares or 46% of the total irrigable lands of 3.1 million has. in the country.

“Dry season is a classic problem of the peasants during farming. The problem is not totally the climate but majorly the absence of irrigation facilities and support to the farmers. NIA has negligible irrigation projects and some are just on paper, worse, some are being charged even their farms are not irrigated,” said Danilo Ramos, KMP Secretary-General in a press statement.

KMP said that though the country was faced with incessant typhoons, agricultural rice output in 2009 has no dramatic shortfall, 10.56 million MT from 10.93 million MT in 2008, a 362,000 MT fall. It is also higher than 2007 level of 10.56 million MT.

The group also said that 2009 farmgate price of rice based on Bureau of Agricultural Statistics (BAS) was pegged at P14.66 per kg, only a P0.74 or 5.32% increase from 2008 price of P13.92 per kg. This figures show that a significant decline did not occur as farmgate price only increased minimally compared to the increase of 2008 of P2.71 per kg or 24.17% from 2007 price of P11.21 per kg. The group said that it is evident that the monopsony of traders on bulk supply of rice depress farmgate prices to squeeze huge profits in selling rice.

“If there was a market-shaking decline, the farmgate prices should have increase appropriately. But government data showed that traders had the power to keep the buying price down, meaning there is no decline in supply,” said Ramos.

“The government is plainly portraying a doomsday picture of our rice supply to sway public opinion towards importation. The fundamentals are that farmers own no lands and traders use their political and economic power to depress farm products. Also, massive imports have empowered traders to further underprice palay from farmers,” Ramos said.

The group also said that the price of local rice should be at the range of P29.32 per kg, in contrast to Vietnam rice of P20.75 to P26.28 per kg ($1=P41.115) based on quotes of Vietnames exporters of $450 to $570 per MT on end of January 2010. While Thailand rice pegs at P21.21 to P27.25 per kg based on Int’l. Rice Research Institute (IRRI) prices of $460 to $591 per MT on December 2009.

“Imported rice already nears the price of local rice even before it reaches the country. When transport and other costs are to be added, it would surely jack up and the landing price would surely be more expensive than locally-produced rice, so definitely, the National Food Authority (NFA) imports rice not because it is cheaper, but to follow the government’s policy of liberalization and commitment to the World Trade Organization (WTO),” said Ramos.

Moreover, the group said that import levels are eating up a big chunk of the share in the national consumption, thus, shattering food security and developing food dependency from outside sources. In 2008, import rice compose 16% of the consumed rice, a 26.8% increase from its 2007 share of 12.3%.

“NFA should purchase more of the local as it would help the country’s rice farmers, unlike importation where we already throw our dollars outside the economy, it even competes with the locally-produced. The government should pull back the effects of liberalization and focus on improving agriculture for food production and not for export. Without food security, people would definitely revolt to find one,” he said. #

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