Press Release
April 29, 2008

Loren opposes NFA rice price hike

Senator Loren Legarda warned today against government "committing the huge mistake" of cutting back its rice subsidy in favor of just handing out cash to the poorest of Filipino families.

"The government rice subsidy benefits more Filipino families than any cash aid program can ever hope to reach. It is not only the poorest Filipino families that buy subsidized NFA rice at P18.25 per kilo, but the majority of our people," Legarda said.

She also noted the position of the church that the cash handouts may foster mendicancy among the poor, saying the thinking is in line with teaching people to fish instead of just giving them fish.

However, Legarda said she would not oppose any government plan to give cash aid to the poor, except if it would result to a reduction in government rice subsidy.

"Rice subsidy to the poor is better than cash handout. Subsidized rice is subsidized rice, while a cash aid may be used to buy rice too or cigarettes for that matter," she said.

It is for this reason that other governments, including that of the United States, provide its destitute citizens food stamps and not cash, Legarda pointed out.

"Food stamps and rice subsidy, vis-a-vis cash aids, leave no room for the purchase of nonessentials," she said.

Legarda said that the best the government can do for the poor is to provide them livelihood opportunities that would empower them economically and break their dependence from government material and financial assistance.

"In lieu of cash aid, I'm for providing food stamps to the poorest family. But this program should not be made an excuse to cut down rice subsidy," she said.

Ultimately, Legarda said the government can do away with rice subsidies when Philippine agriculture is able to supply 100 percent of the country's food requirement.

"That's our long-term objective," she said, explaining that agriculture must get all the support it needs to achieve this, in terms of irrigation, post-harvest and storage facilities, seedlings and fertilizers.

The government said it is losing money purchasing imported rice and selling it to the poor at half the purchase cost.

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