Press Release
April 14, 2008

Loren says 'No!' to NFA rice price hike
Adds for anyone to profit from hunger is inexcusable

Senator Loren Legarda said yesterday that it would be unconscionable for anyone, whether in government or in the private sector, to profit from hunger as experienced by the majority of poor Filipinos.

Legarda issued the statement in reaction to plans floated by the government to increase the selling price of rice imported and sold at subsidized price by the National Food Authority (NFA), as well as continuing reports of rice hoarding by some unscrupulous traders.

"The NFA will cease to have any reason to exist if it cannot assure affordable rice to our poor countrymen. While the government may be losing money in subsidy for NFA rice, it's a bitter pill that must be swallowed until such time that the prices and supply of rice have stabilized," Legarda said.

"I say a resounding 'No!' to any NFA rice price hike," she stressed.

Legarda said that the spiraling prices of non-NFA rice, as well as increases in the prices of oil products like gasoline, diesel and LPG, are pushing the prices of basic commodities.

"Trade Secretary Peter Favila has admitted that a can of sardines which used to sell for P6 now sells for about P9. That's a difference of at least three pesos which our poor countrymen cannot afford," she said.

The senator added that the warning issued by the International Monetary Fund (IMF) that social unrest and even war could result from the shortage and rising prices of food items should not fall on deaf ears.

"Some may say that the IMF is being alarmist. But the riots in Haiti should illustrate the point that a food crisis can lead to social unrest and upheavals," she said, noting the collapse of the Haitian government.

Nonetheless, Legarda noted observations that there may be no real crisis in the country and that the price increases of rice may be artificial created by profiteers.

"To profit from hunger is inexcusable. As it is, Filipinos are already grappling from poverty, hunger and malnutrition. These problems can only worsen if we are unable to ensure our food security," Legarda said.

And not only should the NFA strive to maintain the price of NFA rice, Legarda said. It should also put in effect a better system for the poor to avail of NFA rice, noting the long lines for NFA rice under the sweltering heat of the sun.

With the Senate scheduled to conduct public hearings on the rice situation. Legarda said several points will have to be clarified, including:

  • How the government assesses the country's rice sufficiency;

  • What have led to the speculations about a rice shortage given that the harvest season has just begun;

  • What made the government decide to import more rice; and

  • Exactly how the government procures rice from other country?

Legarda said that ensuring food security is one of the most basic tasks of the government which should go back to the basics by providing the agriculture sector all the support it needs.

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