2 Doable Steps, 3 Policy Changes Proposed to Avert Rice Crisis

Deputy Minority Leader and Bayan Muna Rep. Satur C. Ocampo today proposed “two immediate and doable rice action plan and three imperative policy changes” to avert the looming rice crisis in the country.

Ocampo issued the proposal after prices of the country’s staple food shot up to an average of P29 per kilogram in the local market. The proposed two immediate doable steps are: the strengthening of the National Food Authority’s local procurement capacity and increase farmgate prices of palay, and the dismantling of rice cartels.

“The rice crisis has long been in process, as a consequence of neoliberal globalization policies under the World Trade Organization. Thus, the solutions have to be based on basic policy changes regarding WTO membership, land conversion of agricultural lands, fiscal and debt management. But immediate price monitoring and increased NFA procurement from local rice producers can help.”

Active NFA intervention, dismantling of rice cartels

Ocampo said that “increasing prices of palay and pushing for the NFA’s active intervention in buying farmers’ produce to influence farmgate price will not only encourage farmers to plant palay but will also address unscrupulous rice traders’ and rice cartels’ monopoly pricing at the farmgate,” says Ocampo. “It is highly ironic that the NFA spends more in rice importation than local procurement. The NFA only buys less than 2 per cent of local palay production.”

“The dismantling of rice cartels in the country is also of paramount concern which needs strong political will,” he said. “The monopoly of rice cartels leaves us helpless from indiscriminate and unjust price hikes.”

“These proposals will surely give immediate economic relief to the Filipino people,” Ocampo said.