Press Release
March 18, 2008

Transcript of interview with Senator Mar Roxas on ANC (abridged)

On addressing the possible rice shortage later this year:

Q: You proposed releasing LGU calamity funds to increase rice supply.

MAR: I think that the problem is a lot worse than the Department of Agriculture is making it out to be, and it's better to be prepared early than to be sorry later on. The plan of the government is to import 2 million metric tons of rice. Clearly, that means there's not enough rice in the country. 2 million metric tons is equivalent to two months' consumption. Normally, the NFA only has two weeks' inventory. If there is high confidence by the DA that they can buy this externally, then that's well and good. There is nothing better than making sure we're doing all we can this early to increase our own domestic production. Our domestic production will fall short of our consumption by at least the amount that they intend to import, which is two months' supply. So there's nothing wrong that before the agriculture sector or the planters plant the next crop, we do the best we can so that local government units can help with seeds, fertilizers and pesticides, so that we can maximize the crop that will be coming in the third quarter. The calamity funds can be allocated for seeds, fertilizers and pesticides. So here's a situation where local government units can help by ensuring farmers get the factored inputs that they have.

Q: Shouldn't local government units have the discretion to release the calamity funds?

MAR: The normal definition of 'calamity' is that there's a storm or an earthquake. Now we're saying that there will be a calamitous situation in our country if we don't have enough rice. Precisely the national government can also authorize the release of calamity funds which are reserved precisely for storms and/or earthquakes. What I'm suggesting is that these can be used to buy seeds, fertilizers and pesticides that will be planted for the third quarter can be as robust and as full as it can be.

Q: You're saying the planned importation for the year points to a shortage.

MAR: That's correct. I know that Vietnam has already said they'll only be able to fulfill one-half of what they normally sell to us. I also know that Thailand has said they can not commit to any volumes, they will just sell whatever is available at any given time. So right now, the 2 million metric tons is on a best-effort basis. Number two, we've also seen that the price of rice domestically and internationally has risen. Third, you have the Secretary of Agriculture saying, 'Kung pwede, kalahating takal na lang tayo.' Those are not very good signs. In fact it makes me worry that in minimizing the problem in trying not to make the people panic, we might actually be believing our own propaganda and wake up later in the year, third quarter, fourth quarter, with a real problem. Let's do all we can now so we don't have a problem later on.

Q: There's a plea on the part of the executive for fastfoods to minimize rice wastage, which reportedly amounts to 300,000 metric tons per year. Would this help?

MAR: Whatever we can do to minimize waste is helpful, but what I'm saying is this is not really the most effective or efficient way. As a nation, we consume 33,000 metric tons everyday. So if you get to save 300,000 metric tons, that's 10 days worth. Realistically, you can not save all that wastage, so let's say half of it, 150,000 metric tons, or five days' worth. Our shortage that we have to import is 70 days' use. So yes, let's help by reducing wastage, by trying to secure supply internationally, by cutting down our consumption of rice. All of these things will help, but we have a problem. Let's do all that we can so that the third quarter harvest can be as robust and plentiful as possible.

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