Monday, April 14, 2008

Rice Shortage...

MANILA, Philippines, The price of rice is skyrocketing all over the world. This trend will continue until the end of the year, and it is causing panic in many Asian countries, including the Philippines.

Why is rice getting more expensive? The rice supply is decreasing. Floods in many Asian countries have affected the rice output in the region. Rice exporting nations like Thailand and Vietnam have also reduced their exports to prioritize their local needs. On the other hand, demand for rice has been increasing, especially in India and China.


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The Philippines is one of the top importers of rice in the world. Rice is a politically sensitive commodity in this country. It is not surprising that reports of a rice shortage have energized political debate and public concern regarding the economic policies of President Gloria Macapagal-Arroyo.

If the global supply of rice is dwindling, what is being done to increase local production? In the first place, why is the Philippines, which is predominantly an agricultural nation, importing rice from other countries?

An article entitled "Food Security and Rice" by Dr. Onofre Corpuz provides some historical background on the rice shortage in the Philippines. The article mentions the policies of the government which have weakened the local rice industry.

According to Corpuz, the annual shortages in rice production should not be described as "crises." The Philippines has been importing rice since the 1870s -- this is more than 130 years. He blames government planning on food security for the shortages in rice production.

When Spain decided to open Philippine ports in 1835, it allowed its colony to trade non-rice products to other countries. There was a high demand for cane sugar, molasses, indigo, abaca, tobacco and coffee. Rice farmers began to plant these food items, and by 1870 there was already a rice shortage in the country. The Philippines began importing rice from Indochina. During the 1890s, the Philippines was importing 45,000 tons of rice annually.

-Rei

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