A party-list group representing the agriculture and food sector on Sunday asked the government to ramp up domestic rice production via massive production subsidies in the wake of the decision of Vietnam and Thailand to stop all rice exports.
At the same time, the Butil party-list group suggested that part of the funds to be realigned by President Duterte under the special powers granted to him by the Congress should be dedicated to rice production support, “ which is now imperative given the changed rice supply environment in the ASEAN Region.”
Former Butil party-list Rep. Cecil Chavez said the export freeze decided by Vietnam and Thailand literally closed the import windows we used to have.
The two countries supply 90 percent of the country’s rice imports. Chavez, the group’s spokesperson, said of the three million metric tons imported by the Philippines last year under the import liberalization law, 2.1 million metric tons came from Vietnam while a portion came from Thai suppliers.
“We have to understand that the volume of rice traded on the global market is actually very thin. Some 6 million metric tons traded on the open market. And Vietnam and Thailand are two of the major sources , along with Bangladesh.
With China’s agriculture spooked by the virus, we have no idea on how this will add to the uncertainty of the global rice market, “ Chavez said.
The supply uncertainty can only be remedied by a ramped-up domestic rice production and with the funds for production support drawn from the special powers of the president, she said.
Chavez said an “ inspired and fully-funded rice production “ will not only guarantee adequate supply but would also give life to the dying countryside , which has been crippled by unlimited rice importation, which in turn causeddomestic rice prices to drop to historically low levels.
“Boosting domestic rice production would also serve as a massive economic stimulus for the rural areas,“ Chavez said.