Scuba and Sea Rice: Sowing the
Seeds for Greater Food Security in Asia
5 DECEMBER 2018
Background
With traditional varieties of rice unable to withstand days of
being submerged under flood waters, there is often a high risk of total crop
loss for rice grown in rainfed and flood-affected areas. Serious flooding is
usually created by heavy rainfall, overflow from nearby rivers and canals, and,
in coastal areas, sometimes by tidal movements. Water is often prevented from
draining in rice-growing regions due to the topography of the land. Flooding
causes an annual paddy loss of 3.6 million tonnes; enough to feed 30 million
people. Such events affect not only farmers whose livelihoods depend on the
production of the crop, but also pose a wider threat to food supplies
throughout Asia.
Comment
For decades, scientists have been working towards the
development of so-called “scuba rice”; designed to withstand periods of
flooding for up to two weeks. It is now being grown by farmers in India,
Bangladesh, the Philippines and Indonesia. The average yield of most varieties
of scuba rice is around 4 to 5.8 tonnes per hectare. According to scientists at
the International Rice Research Institute (IRRI), scuba rice will still yield
2.7 to 3.6 tonnes after it has been submerged in flood waters for two weeks.
In China, farmers in the Shandong province along the northern
coast, are successfully growing “sea rice”, a variety of rice that is able to
withstand high levels of alkalinity. The success of the sea rice means that
farmers may be able to grow sufficient rice on saline-alkaline soil to feed an
additional 80 million people. With China’s population expected to reach 1.45
billion by 2030, growth of the sea rice crop is an important development.
According to the IRRI, about 20 million hectares of Asian rice
paddies are prone to flooding. Most of the world’s rice is grown within this
region and some estimates suggest that more than half the world’s population rely
on rice as a staple food. With Asia’s population expected to grow from 4.4
billion in 2018, to 5.2 billion people by 2050, their consumption is expected
to reach about 90 per cent of annual global rice production. The development of
scuba rice and sea rice is expected to help satisfy this demand and benefit
farmers tending to 20 million hectares of rice paddies throughout Asia.
While the scuba and sea rice varieties offer the prospect of
increased food security and a higher income for farmers throughout Asia, there
are a handful of limitations to the crops. Firstly, stable rice harvesting may
mean that farmers experience a higher income in the short term. These economic
benefits may be short lived, however, as supply increases and the local and
international market prices for rice decrease. While it may be detrimental for
farmers, the increased supply is likely to increase affordability for millions
of the world’s poorest people.
The growth of scuba and sea rice must also be carefully managed,
to ensure that global rice production does not become overly dependent on these
varieties. The climate adaptive rice varieties offer security against flooding,
but farmers and food supply chains may become vulnerable if disease were to
wipe out a whole season’s crop. It is important that farmers throughout Asia do
not abandon the traditional varieties of rice altogether.
At a time when the effects of climate change are becoming increasingly
obvious, Asia is at a significant risk of further hunger and famine. Further
development of climate adaptive rice varieties is a positive step towards
long-term future food security throughout the region.
Doctors
explained when the rice may be hazardous to health
06.12.2018
Supporters of a healthy diet is recommended to soak the rice.Scientists conducted an experiment during which found dangerous quality of rice, namely, rice – “the champion” in content of arsenic.Professor Zheng Zhou the University of Indiana told me that his fellow researchers conducted a large-scale experiment, which found that 70-90% of arsenic can be absorbed into the rice grains during the development of the plant.
And after drinking man substance
enters the digestive tract, where it can gradually accumulate. Scientists
believe that this may lead to the development of cancer and cardiovascular
diseases.
Read also: Doctors have called
the product that can provoke a stroke
In this regard, supporters of a healthy diet is recommended to soak the rice, then rinse it and boil in plenty of water. They explain that in this way it is possible to reduce the content of harmful substances in rice.
In this regard, supporters of a healthy diet is recommended to soak the rice, then rinse it and boil in plenty of water. They explain that in this way it is possible to reduce the content of harmful substances in rice.
Southeast Department of Agriculture, MRRMC Announce New MM17
Rice Breed
Researchers in Southeast Missouri State University’s Department
of Agriculture along with the Missouri Rice Research and Merchandising Council
(MRRMC) have announced a new rice variety bred in southeast Missouri now
available to growers for the coming season.“MM17” is a semi-dwarf, mid-season,
medium grain variety with excellent yield potential developed by pedigree
selection in Southeast’s Rice Research Greenhouse in Malden, Missouri, and at the
Missouri Rice Research Farm in Glennonville, Missouri. It is the result of
Missouri rice breeding efforts over several years and represents the first
released variety for Missouri.
Greg Yielding, director of
emerging markets and special projects with the U.S. Rice Producers Association,
and Dr. Mike Aide, professor of agriculture at Southeast Missouri State
University, say new rice varieties like MM17 are creating new market
opportunities and supporting farm profitability by creating expanded sales and
export enhancements.
MM17 is now available from Tanner
Seed Co., LLC, in Bernie, Mo.
Yielding said the new variety was
grown this past summer at the Missouri Rice Research Farm. The rice was
harvested and bagged, with some of the seed reserved for breeder seed, which is
now ready for sale to growers.
Aide and Yielding plan to present
their work in breeding MM17 at the National Conservation Systems Cotton &
Rice Conference Jan. 30-Feb. 1 in Baton Rouge, Louisiana.MM17 was created as a
cross between two varieties – a short grain rice variety developed in Italy and
an experimental line from the Cooperative Uniform Regional Rice Nursery (URNN).
The Cooperative Uniform Regional Rice Nursery is a multi-state rice evaluation
program where rice varieties are evaluated by rice breeders across a spectrum
of soils, climates, disease and insect pressures.
“Missouri is appreciative of our multi-state cooperators in
providing yield and quality performance data,” Aide said.
The new variety was bred knowing
Missouri rice producers value rice varieties having taste and appearance
characteristics
that create an eventful dining
experience, he said.
MM17’s low amylose content, which
is what makes “sticky rice” sticky, is ideal for medium grain table rice and
restaurateurs serving traditional rice recipes, especially for sushi-type
cuisine, Aide said.
Missouri is typically known as a
long-grain rice producing state where traditional elongated rice grain is
grown, whereas MM17 is a medium grain rice having a more rounded shape. Palate
approval is important in cultures where rice is routinely served, he said.
“The Department of Agriculture is
quite excited that the long-time collaboration between it and the MRRMC
resulted in this new variety. We are certainly hopeful that this could have a
positive financial impact on the region and be a boon to our rice growers, said
Dr. Julie Weathers, chair of Southeast’s Department of Agriculture. “We also
look forward to continuing our work with the MRRMC on future development of
this crop that is so important to our region.”
https://news.semo.edu/southeast-department-of-agriculture-mrrmc-announce-new-mm17-rice-breed/
Conservation of
Sarangani’s indigenous rice varieties pushed
December 6, 2018
GENERAL SANTOS CITY — The provincial government of Sarangani and the
Philippine Rice Research Institute (PhilRice) are pushing for the conservation
of various traditional rice varieties that that have thrived for centuries in
the province’s upland areas.
Celito Terando, program manager
of Sarangani’s Sulong Tribu program, said Thursday the local government has
launched a joint research with PhilRice to properly document over a hundred
upland rice varieties that were grown by the area’s indigenous tribes.
Terando said PhilRice personnel
are currently visiting parts of the province’s seven municipalities to
specifically conduct an inventory through scientific means of the area’s
existing traditional rice varieties.
Dubbed “Conservation of Sarangani
Traditional Rice Germplasm,” Terando said the initiative focuses on the
“identification, collection and preservation” of the province’s traditional
rice varieties.
“Our goal is to set aside seed
samples, especially of the premium or special varieties, and eventually
reproduce them to ensure that they will be preserved for our future
generations,” he said in an interview.
Terando said at least 107 upland
rice varieties were listed to have been cultivated by the province’s tribal
communities.
Among the popular upland rice
varieties in the area are Malgas, Lagfisan, Moradu, Masipag, Dinorado and
Sampang.
Terando said the scientific
research is needed as there are still a number of varieties that are not
included in the list.
They also need to establish the
areas where the rice varieties have grown well and whether they were cultivated
by the Blaans, Tbolis, Tagakaulos or other minority groups, he said.
As part of the conservation
process, Terando said the collected seed samples will be placed in a seed bank
that will be established later on by the provincial government.
“There are actually some
varieties that are starting to vanish, and we want to save them,” he added.
Simple steps to climate-proof farms have big potential upside for
tropical farmers
Climate-smart agriculture boosts
yields, mitigates extreme weather impact and reduces greenhouse gas emissions.
A study in Central America, Africa and Asia points to profitable opportunities
for farmers and the environment
IMAGE: DROUGHT AND SALINITY-RESISTANT RICE AT AN INTERNATIONAL CENTER
FOR TROPICAL AGRICULTURE RESEARCH SITE IN VIETNAM. view more
CREDIT: INTERNAIONAL CENTER FOR
TROPICAL AGRICULTURE / GEORGINA SMITH
Cacao farmers in Nicaragua lose
their crop, the main ingredient for chocolate, to fungal blight and degrading
soils. Yields drop in Vietnam's rice paddies because of higher temperatures and
increased salinity. Bean and maize growers in Uganda see their plants die
during severe dry spells during what should be the rainy season. The two-punch
combination of climate change and poor agricultural land management can be
countered with simple measures that keep farms productive and profitable.
Implementation of these climate-smart agriculture (CSA) practices can increase
yields, benefit the environment and increase farmer income, according to a new
cost-benefit analysis by the International Center for Tropical Agriculture
(CIAT) published November 19 in PLOS ONE.
The study examines 10 major
climate-related issues facing farmers in Africa, Asia and Latin America and
proposes site-specific CSA remedies. These include rotating rice fields with
peanuts in Vietnam, manual blight control for cacao in Nicaragua, and planting
drought-tolerant varieties of beans and maize alongside each other in Uganda.
Where additional investment is
required, initial rates of return on investment range from 17 percent to 590
percent. Startup costs can be recovered in one to eight years, depending on the
management practice. In all cases, yields increase.
"The potential for these
strategies is immense and actionable immediately, if targeted to the right
farmers and accompanied by appropriate resources," said Peter Laderach,
CIAT's Global Climate Change and co-author of the study. "Now, the
challenge lies in overcoming the obstacles to implementing their adoption."
Many CSA practices that improve
production, buffer fields against climate change and improve nutrient-poor
soils require little additional investment. Sometimes these cost less than
business-as-usual farming, which relies on single-crop plantations and chemical
fertilizers. But adoption at the most of the research sites in is minimal.
Obstacles include resistance to changing habitual farming techniques, labor
constraints and lack of access to credit.
"Engaging multiple
stakeholders, including the private sector, is crucial in ensuring the
widespread and sustained implementation of climate-resilient strategies,"
said Margarita Astralaga, the Director of the Environment, Climate, Gender and
Social Inclusion Division at the International Fund for Agricultural
Development (IFAD), which provided funding for the research.
Le Lan, a researcher at the
University of Western Australia and the study's lead author, said successful
CSA interventions by governments and development agencies need to seek
"the greatest aggregated benefit to the community" and not just
potential gain for individual farmers. "In addition, if the area suffers
from extreme climate events, targeted assistance must consider the
socioeconomic and cultural realities of farmer groups if the practices are to
be widely adopted."
Room to grow
Lan and colleagues conducted
household surveys in Nicaragua, Vietnam and Uganda, tabulated levels of CSA
adoption, created a cost-benefit analysis for widespread CSA implementation and
projected potential adoption levels at each site.
At the Vietnam study site, the
most widely adopted CSA techniques observed was crop rotation between rice and
peanuts. This increased profits for farmers and reduced their overall
greenhouse gas emissions. Almost one third of farmers had adopted this
technique. Ten percent or fewer had implemented organic fertilization, improved
rice varieties that withstand drought and salinity, and shrimp farming.
The researchers estimate the
adoption potential of five CSA techniques at the Vietnam site range from 23 to
89 percent. Initial investments can be recouped in a maximum of five years,
while organic fertilization and peanut rotation are immediately profitable due
reduced costs for chemical fertilization and rice planting. In contrast, the
research sites in Nicaragua and Uganda showed zero uptake of the study's CSA
strategies.
Nicaraguan cacao farmers can
implement manual control of moniliasis - better known as frosty pod rot disease
- to recover up to 80 percent of their losses to the pathogen. Organic
fertilization and planting banana trees to shade sun-exposed cacao trees can
help increase yield at little expense. The researchers estimate a 50 percent
adoption rate of these strategies is possible. Estimated rates of return for
these practices varies from 17 percent for organic fertilization of cacao over
eight years to 590 percent for banana-tree shading over one year.
Northern Uganda's
drought-threatened farmers can benefit from intercropping hardier breeds of
beans and maize that mature faster, tolerate drought and have higher yields.
Together with implementing water-harvesting techniques for irrigation during
dry spells and retaining soil moisture, these varieties - which are already in
use in other areas not included in the study site - have the potential to be
adopted by 90 percent of farmers. Estimated rates of return are 25 percent over
six year and 85 percent over three years for the Uganda site.
"Scaling CSA is at the heart
of CIAT and CGIAR strategies," said Godefroy Grosjean, a co-author and
leader of CIAT Asia Climate Policy Hub. "With key partners such as IFAD
the World Bank, we are developing CSA Investment Plans for countries including
Bangladesh and Mali. Our work also focuses on conceptualizing solutions to
unlock investment in the agriculture sector. This year, we launched a new
initiative on Agricultural Risks Management that will explore innovative
financial products for CSA tailored to farmers' needs. The research from this
paper will be extremely useful to that purpose."
###
The study was funded by the International Fund for Agricultural
Development (IFAD) in partnership with the CGIAR's Climate Change, Agriculture
and Food Security (CCAFS) research program as part of IFAD's Adaptation for
Smallholder Agriculture Program (ASAP).
The International Center for Tropical Agriculture (CIAT) is a
CGIAR research center. CIAT develops technologies, innovative methods and
knowledge that enable farmers, especially smallholders, to make agriculture
more competitive, profitable, sustainable and resilient. Headquartered in Cali,
Colombia, CIAT conducts research for development in tropical regions of Latin
America, Africa, and Asia. https://ciat.cgiar.org
CGIAR is a global research partnership for a food-secure future.
Its science is carried out by 15 research centers in collaboration with
hundreds of partners across the globe. https://www.cgiar.org
Isabela rice
farmers’ harvest reaches 9 MT/ha
More than twice the national
average of 4 MT/ha
A new farming technique called
“direct seeding” has raised the wet season yield of hybrid rice crops in
Isabela, with a dozen farmers reaping harvests of about 9 metric tons per
hectare (MT/ha), according to the Philippine Rice Research Institute
(PhilRice).
Using the new technology for crop
establishment of inbred and hybrid rice, in which pre-germinated seeds are sown
directly onto the soil surface, early adopters harvested as high as almost 9
MT/ha and gained net income as much as P115,000.
Meanwhile, rice farmers in the
villages of Villafuerte and Daramuangan Norte had wet season harvests that
averaged from 5.7 to 6.7 MT/ha and net income of up to P88,000.
The average rice yield for the
Philippines is about 4 MT/ha.
Aside from increasing their
yield, Isabela farmers were also able to reduce their production cost through
direct-seeding, according to Helen Pasicolan, lead of the direct-seeded rice
technology promotion at PhilRice in San Mateo, Isabela.
She said direct-seeded inbred and
hybrid rice were produced at P16,000 and P19,740, respectively. Meanwhile,
transplanting inbred and hybrid rice were recorded at P22,540 and P26,240,
respectively.
PhilRice said that because field
preparation for seedbed and puddling was also eliminated, diesel cost was
decreased by 60 percent. Water use was also reduced by 33 to 53 percent as
sowing can be done as soon as favorable rainfall has started, the agency said.
“Farmers who experienced the
advantages of direct-seeding were participants in the season-long Farmers’
Field School (FFS). Aside from the 91 FFS participants, the technology was also
showcased to more than 500 farmers
in neighboring barangays and municipalities through Farmers’ Field Days,” PhilRice said.
in neighboring barangays and municipalities through Farmers’ Field Days,” PhilRice said.
It noted that farmers in nearby
municipalities of San Mateo such as Ramon, Alicia, and Cabatuan have also
started to adopt the direct seeding technique.
Furthermore, the PhilRice Isabela
office has partnered with other agencies for further trials that would compare
direct-seeded and transplanted rice in more barangays.
Isabela was the country’s second
top rice producer in 2017 with a total harvest of 1.286 million MT, according
to government figures.
https://www.manilatimes.net/isabela-rice-farmers-harvest-reaches-9-mt-ha/478866/
Villar defends rice tariffication bill: It
will help farmers survive onslaught of rice imports
On Dec 6, 2018
Senator Cynthia Villar on
Thursday defended the rice tariffication bill, which is only one signature away
from passage into law, from criticisms that it would do nothing to improve the
lives of rice farmers.
She stressed that the package of
support for farmers included in the rice tariffication bill is government’s
response to the expiration last June 30, 2017 of the quantitative restriction
(QR) on rice importation under the agreement with the World Treaty Organization
(WTO).
Villar, chair of the Senate
committee on agriculture and food, noted that Senate Bill 1998 or the bill
which replaces the quantitative import restrictions on rice with tariffs,
creates the P10-billion Rice Competitiveness Enhancement Fund or Rice
Fund.“When cheap rice imports start flooding the market, a program that will
provide preferential attention to rice farmers, cooperatives and associations
adversely affected by the tariffication should be established. We will be doing
our farmers a great disservice if we let them face the challenges of a tariffied
system without support mechanisms in place,” Villar said.
Villar also lamented the
“disinformation intentionally circulated to discredit” the rice tariffication
bill and to block the passage of the needed support measures for local rice
farmers.
“It is unfortunate that some
groups are being made to believe that the rice tariffication bill which we have
scrutinized and carefully studied in the Senate, will not be beneficial to
farmers,” she said.
“On the contrary, it includes a
package of support programs that will help farmers adjust to competition under
a tariffied regime,” she said.
A certified measure, the bill is
already submitted for the President’s signature after Congress ratified the
bicameral conference committee report last week.
Under the bill, the 10-billion
Rice Fund will be allocated as follows:
· 50 percent will go to the
Philippine Center for Post Harvest Development and Modernization (PhilMech) to
provide farmers with rice farm machineries and equipment;
· 30 percent will be released to
the Philippine Rice Research Institute (PhilRice) to be used for the
development, propagation and promotion of inbred rice seeds to rice farmers and
the organization of rice farmers into seed growers associations engaged in seed
production and trade;
· 10 percent will be made
available in the form of credit facility with minimal interest rates and with
minimum collateral requirements to rice farmers and cooperatives to be managed
by the Land Bank of the Philippines and the Development Bank of the Philippines;
and
· 10 percent will be set aside to
fund extension services by PhilMech, Agricultural Training Institute (ATI), and
the Technical Education and Skills Development Authority (TESDA) for teaching
skills on rice crop production, modern rice farming techniques, seed
production, farm mechanization, and knowledge/ technology transfer through farm
schools nationwide.
Also under the bill, the excess
rice tariff revenues and the P10 billion fixed appropriation for the
Rice Fund shall be released to
the Department of Agriculture and shall be used for providing direct financial
assistance to rice farmers as compensation for the projected reduction or loss
of farm income arising from the tariffication.
Further, the rice tariffication bill earmarks a portion of the
excess rice tariff revenues for the titling of agricultural lands, expanded
crop insurance program on rice and the crop diversification program
Is govt's $60 billion agri exports target
feasible?
December 07, 2018
18:14 IST
Aiming to push India into the list
of the top 10 agri export nations, the policy has been backed by the Prime
Minister’s Office
Illustration: Uttam Ghosh/Rediff.com
Under attack from farmer groups for
falling prices, the government on Monday unveiled an ambitious agriculture
export policy that seeks to double agri exports to $60 billion by 2022 and do
away with arbitrary curbs on exports.
However, the policy found little
support from experts who termed the target ‘highly ambitious’, given how
exports had fallen from nearly $40 billion five years back to $36 billion in
2017-18.
The aim to remove curbs on exports
also didn’t find much traction. If previous experience is any indication, the
government tends to clamp down on exports at the slightest hint of rising
inflation, they said.
Aiming to push India into the list
of the top 10 agri export nations, the policy has been backed by the Prime
Minister’s Office.
Commerce and Industry Minister
Suresh Prabhu said the policy ties in logistics support, a better trade regime,
and states-led product development to connect farmers to global markets.
“Each state will have a designated
department for promotion of agricultural exports, apart from cluster-based
development for specific commodities. We have also identified several sea ports
to serve as gateways for specific agri exports,” said Prabhu.
Despite India occupying pole
position in global trade of these products, its total agri export basket still
accounts for only a little over 2 per cent of world agri trade, estimated at a
massive $1.37 trillion.
“Achieving an agriculture export
target of $60 billion by 2022 looks ambitious, given the current global market
conditions.
"More so, because India’s
export basket largely comprises meat, marine products, and basmati rice whose
demand in the world market is inelastic,” Gokul Patnaik, former chairman of
Agriculture and Processed Food Products Export Development Authority, said.
Significantly, the policy mandates
that the government finalise a list of essential agro-commodities. All
commodities will see restrictions in the form of a minimum export price, export
duty or bans revoked.
“This will help to stabilise export
flows and stop friction between industries and the government every time
production of a certain commodity fluctuates.
"Also, sudden changes in
policy regarding shipment of onion, rice, wheat, oilseed, pulses or sugar have
long-term impact on economic and foreign relations with many developing
nations,” a senior commerce department official said.
On export ban on essential items,
Patnaik said the world has moved away from a system of bans as people in
importing countries want consistent policies.
“Instead we should look at fiddling
with tariff to protect farmers. Also, our response to sanitary and phytosanitary
measures by importing countries is outdated and needs sprucing up,” Patnaik
added.
Industry insiders also pointed to
the fact that the largest exports will inevitably fall within the essential
category.
Case in point, cereals remain the
largest category among agri products, currently totalling more than $8.1
billion, of which the staple grain of a majority of Indians - rice - makes up
$7.8 billion.
India’s agricultural exports rose
to $36.71 billion in 2017-18, after fluctuating over the previous two years.
It had stood at $39.33 billion five
years back. However, the government is hopeful of a fast pickup in the export
growth rate as the cost of logistics falls and investments in back-end
infrastructure such as cold chains.
However, the commerce ministry
points out that exports rose 9 per cent between 2007 and 2016. This is higher
when compared to other major economies such as China (8 per cent), Brazil (5.4
per cent), and the US (5.1 per cent) between 2007 and 2016. On the other hand,
India’s total agricultural imports stood at $24 billion in 2017-18, up from
about $15 billion in 2013-14.
“There is no bold initiative in
this policy and any hint of inflation will bring restrictions on exports which
depress domestic prices, hurting the interests of farmers,” said former
agriculture secretary Shiraj Hussain.
The government has estimated a
total outlay of Rs 1,400 crore for agricultural exports.
This would be done by merging a
myriad group of agricultural export schemes and incentives
https://www.rediff.com/business/report/is-govts-60-billion-agri-exports-target-feasible/20181207.htm
Centre eyes $60 billion in
agriculture exports by 2022 with new policy
Aiming to push India into the list of the top
10 agri export nations, the policy has been backed by the Prime Minister's
Office
India’s agricultural exports rose to $36.71 billion in 2017-18
Under attack from farmer groups for falling prices, the government
on Monday unveiled an ambitious agriculture export policy that seeks to double
agri exports to $60 billion by 2022 and do away with arbitrary curbs on
exports.
However, the policy found little support from experts who termed
the target ‘highly ambitious’, given how exports had fallen from nearly $40
billion five years back to $36 billion in 2017-18. The aim to remove curbs on
exports also didn’t find much traction. If previous experience is any
indication, the government tends to clamp down on exports at the slightest hint
of rising inflation, they said.
Aiming to push India into the list of the top 10 agri export
nations, the policy has been backed by the Prime Minister’s Office.
Commerce and Industry Minister Suresh Prabhu said the policy ties
in logistics support, a better trade regime, and states-led product development
to connect farmers to global markets.
“Each state will have a designated department for promotion of
agricultural exports, apart from cluster-based development for specific
commodities. We have also identified several sea ports to serve as gateways for
specific agri exports,” said Prabhu.
Despite India occupying pole position in global trade of these
products, its total agri export basket still accounts for only a little over 2
per cent of world agri trade, estimated at a massive $1.37 trillion.
“Achieving an agriculture export target of $60 billion by 2022
looks ambitious, given the current global market conditions. More so, because
India’s export basket largely comprises meat, marine products, and basmati rice
whose demand in the world market is inelastic,” Gokul Patnaik, former chairman
of Agriculture and Processed Food Products Export Development Authority, said.
Significantly, the policy mandates that the government finalise a
list of essential agro-commodities. All commodities will see restrictions in
the form of a minimum export price, export duty or bans revoked.
“This will help to stabilise export flows and stop friction between
industries and the government every time production of a certain commodity
fluctuates. Also, sudden changes in policy regarding shipment of onion, rice,
wheat, oilseed, pulses or sugar have long-term impact on economic and foreign relations
with many developing nations,” a senior commerce department official said.
On export ban on essential items, Patnaik said the world has moved
away from a system of bans as people in importing countries want consistent
policies. “Instead we should look at fiddling with tariff to protect farmers.
Also, our response to sanitary and phytosanitary measures by importing
countries is outdated and needs sprucing up,” Patnaik added.
Industry insiders also pointed to the fact that the largest exports
will inevitably fall within the essential category. Case in point, cereals
remain the largest category among agri products, currently totalling more than
$8.1 billion, of which the staple grain of a majority of Indians - rice - makes
up $7.8 billion.
India’s agricultural exports rose to $36.71 billion in 2017-18,
after fluctuating over the previous two years. It had stood at $39.33 billion
five years back. However, the government is hopeful of a fast pickup in the
export growth rate as the cost of logistics falls and investments in back-end
infrastructure such as cold chains.
However, the commerce ministry points out that exports rose 9 per
cent between 2007 and 2016. This is higher when compared to other major
economies such as China (8 per cent), Brazil (5.4 per cent), and the US (5.1
per cent) between 2007 and 2016. On the other hand, India’s total agricultural
imports stood at $24 billion in 2017-18, up from about $15 billion in 2013-14.
“There is no bold initiative in this policy and any hint of
inflation will bring restrictions on exports which depress domestic prices,
hurting the interests of farmers,” said former agriculture secretary Shiraj
Hussain.
The government has estimated a total outlay of Rs 14 billion for
agricultural exports. This would be done by merging a myriad group of
agricultural export schemes and incentives.https://www.business-standard.com/article/economy-policy/centre-eyes-60-billion-in-agriculture-exports-by-2022-with-new-policy-118120700038_1.html
Inflation among poor households up 9.5% in October
December 7, 2018 | 7:26 pm
PHILSTAR
By Jochebed B. Gonzales, Senior
Researcher
INFLATION, as experienced by low
income households, stood at 9.5% in October, driven by sharp price upticks in
food and utilities, the government reported on Friday.
The October inflation turnout for
goods and services used by households at the bottom 30% income segment matched
September’s 9.5% print, which was the fastest since the first quarter of 2009’s
12.3%, based on available data from the Philippine Statistics Authority’s Web
site. It also accelerated from the 3.4% year on year price increase recorded in
the same month a year ago.
The latest reading brought the
segment’s year to date inflation to 7.0%, higher than the 2.9% average during
last year’s comparable period.
The Consumer Price Index for the
bottom 30% income segment reconfigures the model basket of goods to reflect a
heavier weighting for food, beverages and tobacco (FBT) index. This and other
weightings are regarded to more accurately capture the spending patterns of the
poor.
FBT recorded the highest uptick
among commodity groups, rising 10.7% year on year from 3.3% in October 2017.
The food alone index logged a 9.8% growth with rice and corn prices climbing
11.5% and 5.6%, respectively.
Fruits and vegetables registered
a 14.2% price growth while fish and meat prices rose 12.6% and 7.1%, respectively.
The cost of utilities, consisting
of fuel, light and water, accelerated to 9.8% from 6.5% a year ago. Higher
annual markups were also recorded in housing and repairs (5.1% from 2.8%),
services (3.5% from 1.8%), clothing (2.9% from 1.3%) and miscellaneous goods
(2.2% from 1.3%).
By region, inflation on goods
used by poor households was highest in Mimaropa at 15.8%. Also seeing
double-digit inflation were the regions of Ilocos (12.6%), Cagayan Valley
(11.7%), Western Visayas (11.7%), Bicol (10.5%) and Central Visayas (10.1%).
Summing up the regions apart from
the nation’s capital, inflation for the bottom 30% income segment in areas
outside the National Capital Region came in at 9.5%. Metro Manila, on the other
hand, was lower with 6.9% price growth.
Sought for comment, Michael L.
Ricafort, economist at Rizal Commercial Banking Corp., pointed to faster
increases in food and fuel prices.
“Food prices that have relatively
higher inflation weights such as rice, corn, fish, fruits and vegetables posted
a relatively higher increase in 2018, especially amid reduced local supply
brought about by lower importation of rice that led to shortage/reduced market
supply of cheap NFA (National Food Authority) rice earlier this year,” he said,
noting that the low income segment purchased the more expensive commercial
varieties of rice.
Mr. Ricafort added, “The sharp
increase in global crude oil/fuel prices earlier in 2018 resulted (in) much
higher expenses by households from the lowest income brackets since
transport/fuel costs account for a higher share of their budgets/expenditures
as a result of lower income base, thereby magnifying the adverse impact of
higher transport fares and other fuel expenses compared to higher-income
groups.”
He also pointed out: “Inflation
of the lowest income brackets, higher than the headline inflation for all
income segments, could ease by a much faster rate, given the dramatic decline
in global oil prices….”
“Furthermore, harvest season for
rice and the proposed tariffication of rice imports and other non-monetary
measures to increase rice/food supply in an effort to reduce prices could have
a bigger impact on the reduction of inflation for the bottom 30% income segment
than on higher income segments.”
ASIA
RICE-INDIA RATES SLIP; TOUGH CHINESE RULES DENT VIETNAM EXPORTS
12/6/2018
* Indian rupee touches lowest in two weeks
* Tight supplies, Philippines demand limit price falls in Vietnam
* Thai rice demand to remain soft until early 2019- traders
By Sumita Layek
BENGALURU, Dec 6 (Reuters) - Rice export prices fell a the second
consecutive week in India on a weakening rupee and slow demand, while strict
inspections from top consumer China muted exports from Vietnam.
India's 5 percent broken parboiled variety <RI-INBKN5-P1>
was quoted around $364-$368 per tonne this week, from $366-$370 the last week.
"Prices are down as traders are adjusting to the drop in the
rupee. Demand is still weak," said an exporter based at Kakinada in the
southern state of Andhra Pradesh.
The Indian rupee fell nearly 1 percent on Thursday to the lowest
level in two weeks, increasing exporters margin from the overseas sales.
In an attempt to accelerate exports, the Indian government last
month said it will give a 5 percent subsidy for non-basmati rice shipments for
the four months to March 25, 2019.
In neighbouring Bangladesh, rice imports in July-November stood at
106,640 tonnes, the country's food ministry data showed, after the government
imposed a 28 percent tax on shipments to support its farmers after local
production revived.
Meanwhile, in Vietnam, rates for 5 percent broken rice
<RI-VNBKN5-P1> dipped to $400 a tonne from $408 last week as exports to
China fell on stricter inspections and conditions on Vietnamese rice, traders
said.
"Exports to China are almost frozen, no one dares to buy or
sell. Some people who had their rice ready at the port now have to take them
back because they fear the Chinese side will not take them," a trader in
Ho Chi Minh City said.
However, the fall in prices was limited due to tight supply at the
end of a small crop season in Vietnam and orders from rice-scarce Philippines.
The next major crop harvest in the southeast-Asian nation, the
winter-spring crop, is due next March.
In Thailand, benchmark 5 percent broken rice <RI-THBKN5-P1>
prices narrowed to $390-$393, free on board (FOB) Bangkok, from $380-$397 last
week.
"Apart from the recent order from the Philippines, Thai rice
exporters are not expecting any large order until early 2019," a
Bangkok-based rice trader said.
Traders attributed this week's fluctuation in rice prices to the
exchange rate. The Thai baht shed more than a quarter of a percent on Thursday,
after rising for four previous sessions.
"Some exporters are still talking about a possible deal to
markets like Japan and Indonesia, but so far things are quiet and will likely
remain this way until January," said another Bangkok-based trader.
(Reporting by Panu Wongcha-um in Bangkok, Mai Nguyen in Hanoi, Ruma Paul in
Dhaka and Rajendra Jadhav in Mumbai; Editing by David Evans)
‘NFA rice to
come from local farmers’
A farmer in Central Luzon plants rice in this file photo.
Agriculture Secretary Emmanuel F.
Piñol vowed that affordable rice that will be sold by the National Food
Authority (NFA) starting next year will be produced by local farmers.
Piñol said this will be made
possible by the passage of the rice tariffication bill, which will disallow the
NFA from importing rice to boost its buffer stocks.
“The NFA will be focused on the
procurement of palay [unmilled rice] produced by Filipino farmers,” Piñol said
in his latest Facebook post.
“This is a welcome development
not only for the Filipino farmers but also for top officials of the Department
of Agriculture and the NFA who advocate for change in the image of the rice
agency,” he added.
The exit of the NFA from
importation, Piñol said, will end the corrupt practice of some employees who
seek bribes before awarding import permits.
“[The NFA’s] years of involvement
in the rice importation program for buffer stocking, suspicions were rife that
there were financial transactions involved where officials raked in money. The
very tight requirements also led to corruption in the awarding of import
permits,” he said.
Piñol said the passage of the
rice tariff bill “assures farmers of a market and stable income.” For next
year, the government has allocated P7 billion for local palay procurement.
The House of Representatives on
November 28 endorsed for President Duterte’s signature the rice tariffication
bill and the coconut-levy trust fund after it ratified the bicameral conference
committee reports on the two measures.
The rice tariffication bill would
lift the quantitative restriction (QR) on rice in keeping with its commitment
to the World Trade Organization after the special waiver on rice expired on
June 30, 2017.
The conversion of the QR on rice
into tariffs would enable government to increase its revenues. Tariffs
collected from imports will then form the Rice Competitiveness Enhancement Fund
(RCEF), which will bankroll initiatives aimed at boosting farm productivity and
helping farmers access cheap credit.
Under the rice tariffication
bill, 10 percent of the P10-billion RCEF will be set aside for credit to
farmers and cooperatives.
Removing the QR on rice by
amending Republic Act 8178 would allow the government to generate P27
billion annually, according to a paper published by the Philippine Institute
for Development Studies.
Economic managers have been
banking on the passage of the measure before the end of the year to rein in
inflation, as the spike in rice prices was tagged as a major factor behind the
rise in the consumer price index.
This year, the highest inflation
rate was recorded in September, when it reached 6.7 percent. In January, when
the government started implementing the Tax Reform for Acceleration and
Inclusion law, inflation was only at 3.4 percent.
The government expects the
increase in rice supply—with the scrapping of the QR—to cut the price of the
staple by P7 per kilogram.
[ANALYSIS] Will rice
tariffication live up to its promise?
JC Punongbayan
Published 12:43 PM, December 07, 2018
Updated 12:44 PM, December 07, 2018
As always, the devil is in the
details.Amid high inflation (6% as of November), many people expect the pending
Rice Tariffication Bill to be a source of quick relief.
Some government economists
estimated that the law, once passed, might slash the price of rice by as much
as P7 per kilo, thus tempering runaway inflation.
By allowing freer importation of
rice, economists also expect the law to allow Filipinos to enjoy somewhat the
ridiculously low rice prices in countries like Thailand in Viet Nam (see Figure
1).
Whereas rice in the Philippines
costs more than P40 per kilo (on average), it costs less than P20 per kilo in
Thailand and Viet Nam.
Figure 1.
The Rice Tariffication Bill has
gone through both houses of Congress now, and is nearly up for signature by
President Duterte.
But in this article I discuss why
the current form of the law leaves much to be desired, despite the much-needed
rice reforms it brings.
Overdue
The truth is we’ve been putting
off rice tariffication for decades.
For the longest time, importing
rice in the Philippines has been controlled by one government agency: the
National Food Authority (NFA), and its predecessor the National Grains
Authority (created by ex-president Ferdinand Marcos in 1972).
This import monopoly allows the
NFA to bring rice into the country based on its projections of rice demand and
supply nationwide. However, over the years, miscalculations have often led to
over- or under-importation (thus, rice surpluses and shortages).
Since the country joined the
World Trade Organization (WTO) in 1995, we’ve committed to put an end to these
import quotas and “tariffy” them instead – that is, convert them into their
equivalent tariffs or import taxes.
When we say “equivalent,” we mean
we apply tariff rates that bridge the difference between local and world rice
prices.
But this international commitment
to liberalize the rice sector posed a threat to Filipino farmers.
The Philippine government has
since postponed its compliance with the WTO several times. In 1994 we asked for
an extension until 2005, then another until 2012, and yet another until 2017.
Sure, these extensions were
permitted by the WTO, but only on condition that the government will allow the
private sector to import rice within a certain quota, slapped with a tariff
rate.
From 59,730 metric tons in 1995
(with a 50% tariff), this quota is now up to 805,000 metric tons in 2018 (with
a 35% tariff).
Finally, in 2016, the economic
managers prevailed upon President Duterte to finally abolish these rice import
quotas.
Philippines hopes to pass rice tariffication law in 2018
The rice tariffication bill aims to amend the present agricultural
policy, which allows the National Food Authority to monopolize rice importation
Senate approves bill lifting rice import limits
Caveats
Now, with the Rice Tariffication
Bill, we’re closer than ever to putting an end to these interminable deadline
extensions.
However, there are caveats.
First and foremost, this bill
sets a 35% tariff rate on all rice imports from ASEAN countries, and a 50%
tariff on all imports from non-ASEAN countries.
But some experts say these tariff
rates are still too high, and lower rates (say, to the tune of 10% to 20%)
might be more in keeping with the overarching goal of making rice more
affordable for Filipinos.
Second, apart from paying these
tariff rates, the bill requires that all private players secure “sanitary and
phytosanitary import clearances” from the Bureau of Plant Industry (BPI) before
they can import.
This is to ensure that the rice
they’ll import will not be infested by pathogens or pests like bukbok (weevils).
Although this sounds reasonable
enough, past experience tells us that this could be prone to abuse – as rightly pointed out by Dr Ramon Clarete of the
UP School of Economics.
Remember the abnormal increase of
garlic prices in 2014? Investigations found that it was borne by colluding BPI officials who issued sanitary and phytosanitary
permits to select garlic cartels.
The whole point of rice
tariffication is to abolish the licensing system that prevailed in the past.
But this provision in the Rice Tariffication Law creates what is effectively
another import license – albeit in the guise of health permits. Does the Rice
Tariffication Bill have enough safeguards against their abuse?
Third, the Rice Tariffication
Bill also introduces a Rice Competitiveness Enhancement Fund (Rice Fund) that
earmarks P10 billion annually for 6 years, sourced from the rice tariff
revenues.
This Rice Fund is supposed to
shield Filipino rice farmers from the influx of competition from abroad, and
bolster their competitiveness by furnishing them with more farm equipment,
enhanced skills, and better seed varieties.
But again, we have to be wary of
what happened in the past: similar funds had miserably failed to improve the
plight of our farmers. Some were even outright corrupted.
Remember the heinous Fertilizer Fund Scam, where P728 million worth of Department of Agriculture
funds meant to buy fertilizers for farmers were just funneled to the 2004
presidential campaign of ex-president Gloria Macapagal Arroyo?
Dr Emil Q. Javier of the National
Academy of Science and Technology has also warned that the free distribution of
inputs the Rice Fund entails (including machinery or seeds) is “well-meaning but
misdirected.”
For him, the Rice Fund will be
put to better use if it were focused instead on improving rice farmers’ access
to credit and crop insurance.
The Rice Fund also does not
address deeper problems in the agricultural sector, such as the failure of the
country’s land reform program and the inability of small farmers to consolidate
their landholdings and exploit the cost savings borne by “economies of scale.”
All in all, absent sufficient
safeguards, the Rice Fund might only serve as another costly leaky bucket that
politicians can exploit.
Let’s manage our expectations
The path to hell is paved with
good intentions, and the Rice Tariffication Bill is no exception.
To be sure, its heart is in the
right place. Not only does it promise to lower rice prices, abate inflation,
and fulfill our decades-old commitment to tariffy rice quotas, it also
allocates funds for the betterment of our rice farmers.
Yet with import license permits
that could be abused and a juicy P10-billion pot of money that could be
mismanaged, the jury is still out whether the Rice Tariffication Bill will
really live up to its promise.
Let’s manage our expectations
accordingly. – Rappler.com
The author is a PhD candidate at
the UP School of Economics. His views are independent of the views of his
affiliations. Follow JC on Twitter (@jcpunongbayan) and Usapang Econ (usapangecon.com).
Villar defends rice tariffication bill: It
will help farmers survive onslaught of rice imports
On Dec 6, 2018
Senator Cynthia Villar on
Thursday defended the rice tariffication bill, which is only one signature away
from passage into law, from criticisms that it would do nothing to improve the
lives of rice farmers.
She stressed that the package of
support for farmers included in the rice tariffication bill is government’s
response to the expiration last June 30, 2017 of the quantitative restriction
(QR) on rice importation under the agreement with the World Treaty Organization
(WTO).
Villar, chair of the Senate
committee on agriculture and food, noted that Senate Bill 1998 or the bill
which replaces the quantitative import restrictions on rice with tariffs,
creates the P10-billion Rice Competitiveness Enhancement Fund or Rice Fund.
“When cheap rice imports start
flooding the market, a program that will provide preferential attention to rice
farmers, cooperatives and associations adversely affected by the tariffication
should be established. We will be doing our farmers a great disservice if we
let them face the challenges of a tariffied system without support mechanisms
in place,” Villar said.
Villar also lamented the
“disinformation intentionally circulated to discredit” the rice tariffication
bill and to block the passage of the needed support measures for local rice
farmers.
“It is unfortunate that some
groups are being made to believe that the rice tariffication bill which we have
scrutinized and carefully studied in the Senate, will not be beneficial to
farmers,” she said.
“On the contrary, it includes a
package of support programs that will help farmers adjust to competition under
a tariffied regime,” she said.
A certified measure, the bill is
already submitted for the President’s signature after Congress ratified the
bicameral conference committee report last week.
Under the bill, the 10-billion
Rice Fund will be allocated as follows:
· 50 percent will go to the
Philippine Center for Post Harvest Development and Modernization (PhilMech) to
provide farmers with rice farm machineries and equipment;
· 30 percent will be released to
the Philippine Rice Research Institute (PhilRice) to be used for the
development, propagation and promotion of inbred rice seeds to rice farmers and
the organization of rice farmers into seed growers associations engaged in seed
production and trade;
· 10 percent will be made
available in the form of credit facility with minimal interest rates and with
minimum collateral requirements to rice farmers and cooperatives to be managed
by the Land Bank of the Philippines and the Development Bank of the
Philippines; and
· 10 percent will be set aside to
fund extension services by PhilMech, Agricultural Training Institute (ATI), and
the Technical Education and Skills Development Authority (TESDA) for teaching
skills on rice crop production, modern rice farming techniques, seed
production, farm mechanization, and knowledge/ technology transfer through farm
schools nationwide.
Also under the bill, the excess
rice tariff revenues and the P10 billion fixed appropriation for the
Rice Fund shall be released to
the Department of Agriculture and shall be used for providing direct financial
assistance to rice farmers as compensation for the projected reduction or loss
of farm income arising from the tariffication.
Further, the rice tariffication bill earmarks a portion of the
excess rice tariff revenues for the titling of agricultural lands, expanded
crop insurance program on rice and the crop diversification program.
Villar seeks sustained financial support for local rice farmers
Published December 6, 2018, 5:47 PM
By Vanne Terrazola
Senator Cynthia Villar has called
for sustained distribution of funds for local rice farmers once the proposed
rice tariffication law is enacted.
Senator Cynthia Villar
(Senate of the Philippines / MANILA BULLETIN)
(Senate of the Philippines / MANILA BULLETIN)
Villar, chair of the Senate
Committee on Agriculture and Food, stressed this Thursday as she said that a
“package of support” for farmers who may be distressed comes with the
government’s impending implementation of the measure that replaces the
quantitative import restrictions on rice with tariffs.
The senator, author and sponsor
to the proposed act, said the bill creates the Rice Competitiveness Enhancement
Fund (RCEF), or rice fund, amounting to at least P10 billion every year.
A certified measure, the bill has been submitted for the President’s signature after Congress ratified their bicameral conference committee report last week.
A certified measure, the bill has been submitted for the President’s signature after Congress ratified their bicameral conference committee report last week.
“When cheap rice imports start
flooding the market, a program that will provide preferential attention to rice
farmers, cooperatives, and associations adversely affected by the tariffication
should be established,” Villar said.
“We will be doing our farmers a
great disservice if we let them face the challenges of a tariffied system
without support mechanisms in place,” she added.
The RCEF, Villar noted, would
also be the government’s response to the June, 2017, expiration of the
quantitative restriction (QR) on rice importation under the agreement with the
World Trade Organization (WTO).
Without the rice fund, the
country’s rice farmers will lose, the senator said.
Under the rice tarrification
bill, P10-billion rice fund shall be allocated to the Philippine Center for
Post Harvest Development and Modernization (PhilMech) to provide farmers with
rice farm machineries and equipment (50 percent); and to the Philippine Rice
Research Institute (PhilRice) to be used for the development, propagation, and
promotion of inbred rice seeds to rice farmers, and the organization of rice
farmers into seed growers associations engaged in seed production and trade (30
percent).
Ten percent, meanwhile, will be made
available in the form of credit facility with minimal interest rates and with
minimum collateral requirements to rice farmers and cooperatives. It shall be
managed by the Land Bank of the Philippines and the Development Bank of the
Philippines.
Also 10 percent will be set aside
to fund extension services by PhilMech, Agricultural Training Institute, and
the Technical Education and Skills Development Authority for teaching skills on
rice crop production, modern rice farming techniques, seed production, farm
mechanization, and knowledge/technology transfer through farm schools
nationwide.
Aside from the P10-billion annual
RCEF, excess rice tariff revenues shall be released to the Department of
Agriculture and shall be used for providing direct financial assistance to rice
farmers as compensation for the projected reduction or loss of farm income
arising from the tariffication.
The rice tariffication bill
earmarks a portion of the excess rice tariff revenues for the titling of
agricultural lands, expanded crop insurance program on rice, and the crop
diversification program
‘NFA
rice to come from local farmers’
Agriculture
Secretary Emmanuel F. Piñol vowed that affordable rice that will be sold by the
National Food Authority (NFA) starting next year will be produced by local
farmers. Piñol said this will be made possible by the passage of the rice
tariffication bill, which will disallow the NFA from importing rice to boost
its buffer stocks. “The NFA will be focused on the procurement of palay
[unmilled rice] produced by Filipino farmers,” Piñol said in his latest
Facebook post.
“This is a
welcome development not only for the Filipino farmers but also for top
officials of the Department of Agriculture and the NFA who advocate for change
in the image of the rice agency,” he added. The exit of the NFA from
importation, Piñol said, will end the corrupt practice of some employees who
seek bribes before awarding import permits. “[The NFA’s] years of involvement
in the rice importation program for buffer stocking, suspicions were rife that
there were financial transactions involved where officials raked in money.
The very tight
requirements also led to corruption in the awarding of import permits,” he
said. Piñol said the passage of the rice tariff bill “assures farmers of a
market and stable income.” For next year, the government has allocated P7
billion for local palay procurement. The House of Representatives on November
28 endorsed for President Duterte’s signature the rice tariffication bill and
the coconut-levy trust fund after it ratified the bicameral conference
committee reports on the two measures. The rice tariffication bill would lift
the quantitative restriction (QR) on rice in keeping with its commitment to the
World Trade Organization after the special waiver on rice expired on June 30,
2017.
The conversion of the QR on rice into tariffs would
enable government to increase its revenues. Tariffs collected from imports will
then form the Rice Competitiveness Enhancement Fund (RCEF), which will bankroll
initiatives aimed at boosting farm productivity and helping farmers access
cheap credit. Under the rice tariffication bill, 10 percent of the P10-billion
RCEF will be set aside for credit to farmers and cooperatives. Removing the QR
on rice by amending Republic Act 8178 would allow the government to
generate P27 billion annually, according to a paper published by the Philippine
Institute for Development Studies.
Economic managers have been banking on the passage of
the measure before the end of the year to rein in inflation, as the spike in
rice prices was tagged as a major factor behind the rise in the consumer price
index. This year, the highest inflation rate was recorded in September, when it
reached 6.7 percent. In January, when the government started implementing the
Tax Reform for Acceleration and Inclusion law, inflation was only at 3.4
percent. The government expects the increase in rice supply—with the scrapping
of the QR—to cut the price of the staple by P7 per kilogram.
Support for farmers in rice tariffication is
assured—Villar
Senator
Cynthia Villar stressed Thursday the package of support for farmers included in
the rice tariffication bill was government’s response to the expiration last
June 30, 2017 of the quantitative restriction on rice importation under the
agreement with the World Treaty Organization.
Villar,
chairman of the Committee on Agriculture and Food, said Senate Bill 1998 or the
bill which replaces the quantitative import restrictions on rice with tariffs,
created the P10-billion Rice Competitiveness Enhancement Fund or Rice Fund.
“When
cheap rice imports start flooding the market, a program that will provide
preferential attention to rice farmers, cooperatives and associations adversely
affected by the tariffication should be established. We will be doing our
farmers a great disservice if we let them face the challenges of a tariffied
system without support mechanisms in place,” Villar said.
A
certified measure, the bill is already submitted for the President’s signature
after Congress ratified the bicameral conference committee report last week.
Under
the bill, the P10-billion Rice Fund will be allocated as follows:
•
50 percent will go to the Philippine Center for Post Harvest Development and
Modernization (PhilMech) to provide farmers with rice farm machineries and
equipment;
•
30 percent will be released to the Philippine Rice Research Institute
(PhilRice) to be used for the development, propagation and promotion of inbred
rice seeds to rice farmers and the organization of rice farmers into seed
growers associations engaged in seed production and trade;
•
10 percent will be made available in the form of credit facility with minimal
interest rates and with minimum collateral requirements to rice farmers and
cooperatives to be managed by the Land Bank of the Philippines and the
Development Bank of the Philippines; and
•
10 percent will be set aside to fund extension services by PhilMech,
Agricultural Training Institute, and the Technical Education and Skills
Development Authority for teaching skills on rice crop production, modern rice
farming techniques, seed production, farm mechanization, and knowledge/
technology transfer through farm schools nationwide.
Also
under the bill, the excess rice tariff revenues and the P10 billion fixed
appropriation for the Rice Fund shall be released to the Department of
Agriculture and shall be used for providing direct financial assistance to rice
farmers as compensation for the projected reduction or loss of farm income
arising from the tariffication.
Further,
the rice tariffication bill earmarks a portion of the excess rice tariff
revenues for the titling of agricultural lands, expanded crop insurance program
on rice and the crop diversification program.
The
Nacionalista Party senator also said the bill sought to remove the
factors that the Philippine Institute for Development Studies identified as
barriers to the Filipino farmers’ competitiveness.
These
are the lack of mechanization, the lack of good seeds, and the lack of access
to cheap credit.
Villar
also said the bill, if enacted into law, will provide for a more focused
function for the National Food Authority, which is to buy palay from local
farmers only.
Villar
also lamented the disinformaton intentionally circulated to discredit the rice
tariffication bill and to block the passage of the needed support measures for
local rice farmers.
“It
is unfortunate that some groups are being made to believe that the rice
tariffication bill which we have scrutinized and carefully studied in the
Senate, will not be beneficial to farmers. On the contrary, it includes a
package of support programs that will help farmers adjust to competition under
a tariffied regime,” Villar said.
DTI to rice traders, retailers: Revisit
sound management practices
07 Dec 2018, 22:38 GMT+10
MAASIN CITY, Dec. 6 (PIA)
-- The Department of Trade and Industry
(DTI) has advised businessmen engaged in the rice industry to look closely the
way they do business to cushion potential adverse impact on the expected price
ceiling on rice.
Michael Nunez, DTI provincial director,
aired the call twice, first at the dialogue initiated by the National Food
Authority (NFA) last week with concerned rice retailers and millers and,
second, during the Kapihan forum Friday where he was the guest.
In both instances, Nunez encouraged the
traders to seriously consider doing sound management practices with regards to
how they conduct daily operations in the commercial grains business, like
having enough inventory to last until the next harvest season, or hold off
hiring more personnel to save on costs.
During the launching event for the
suggested retail price on rice Tuesday last week, John Robert Hermano, NFA
regional director, told those directly involved in the grains business to
dispose their current stocks until November 30, 2018 only.
Starting on December 1, 2018, the highest
price of rice based on the SRP will only be P47 per kg, so those having price
tags of more than P50 per kg must follow, Hermano declared, adding that this
has worked in other cities like Tacloban and Ormoc, so there's no reason this
cannot be done hereabouts.
At the Kapihan forum, Nunez clarified that
even as DTI is now mandated to assist NFA in monitoring rice SRP in the market
by December 1 for DTI's internal use, those who may notice non-compliant rice
stores are advised to go direct to the NFA office to complain.
He said in the light of this development on
the implementation of SRP on a basic food staple like rice, the DTI is
contemplating on calling all involved retailers, wholesalers, and millers to
retool them on practical sound management practices.
He also called on the big traders and
millers to do away with having a "canvasser," or at least start
distancing with them, again as a way to save on cost.
Canvassers serve as the link between
traders and farmers, earning P500 per sack, an expense passed on to consumers,
according to a statement of a trader during the NFA-led forum based on actual
experience. (LDL/MMP/PIA8-Southern Leyte)
Academic
shines light on structural problems in padi industry
December 8, 2018 8:50 AM
Universiti
Malaya economics professor Fatimah Kari.PETALING JAYA: Padi farmers are still
one of the most marginalised groups where poverty rate is among the highest in
Malaysia, despite large investments in subsidies and training provided by the
government.
Fatimah Kari, an economist from
Universiti Malaya and a senior fellow at the Institute of Democracy and
Economic Affairs, partly attributed this to the unfair market structures within
the padi industry’s supply chain.
“From the calculations that I
made, the rent-seeking index in the industry was very high and came to about
1.8, almost 2,” she told FMT during an exclusive interview after the launch of
her report.She said this meant that for every RM1 a farmer makes, large
corporations such as Padiberas Nasional Bhd (Bernas), distributors and
retailers will make the same amount, without having to face the same risk
factors, bear the same cost, or put in the same amount of labour that farmers
would have to endure.
“Whatever the farmer makes is
equally created in distribution centres or big corporations in the supply chain
who face a different, more favourable risk profile,” she added.
Her paper reflected the burden
that farmers continue to face in a time of technological advancements and
development, and economic uncertainty.Her other findings included government
subsidies often missing the mark, and farmers remaining as mere producers
instead of expanding into major players in the market.
Speaking about Bernas in
particular she said, “The rent-seeking index means that Bernas is getting 100%
of the farmers’ capital.
“Worse still, with Bernas, you
are talking about their rent-seeking behaviour not only in terms of control of
imports but also control of inputs.”
Bernas is the major importer of
rice in Malaysia. It also produces over 30% of all padi production in the
country, equivalent to 800,000 metric tonnes of rice.It also operates private
wholesalers, distributors and rice mills.
It even owns a share of the
“input market” to the padi industry, which refers to the market selling
fertilisers, seeds and other farming necessities to the farmers, she said.She
argued that calculating Bernas’ rent-seeking index would include all its
profits from both importing and producing rice.
“That is their rent-seeking value
because you must understand that they do not take similar risks as the
farmers,” she said, adding that farmers were the ones who would have to farm
the land, pay the labour, and use their own resources.
However, Bernas CEO Ismail
Mohamed Yusoff, who believed that there was a need for some monopoly, said
during a press conference in July this year that Bernas was not attempting to
make “monopolistic profits”.
“Contrary to popular belief,
Bernas does not make monopolistic profits,” he said.
Citing data, Ismail said Bernas’
profit margins were minimal – between 0.4% and 1.8% over the past three years.
He added that Bernas’ return on
equity (ROE), or its net assets or assets minus liabilities, stood at 4.9% in
2017.“This in comparison with fast-moving consumer goods companies such as
Dutch Lady Milk Industries Bhd or Nestle (M) Bhd, whose ROE were above 100%
that year.”
Padi
farmers are still one of the most marginalised groups where poverty rate is
among the highest in Malaysia. (Bernama pic)
Break up the monopoly
It was announced by the Pakatan
Harapan government that there would be a revision of Bernas’ control over its
licence to import rice.But “despite the government’s formal announcement, the
corporation’s ownership has continued to be controlled by dominant
personalities”, Fatimah’s report stated.
In October, The Edge reported
Agriculture Minister Salahuddin Ayub as saying that the government would take
over the function of Bernas after its concession terminates in 2021.
Fatimah said efforts were needed
to break up the monopoly to ensure open competition with other players –
importers, major wholesalers and millers – who are just as good and
knowledgeable about the market.
She said these “other players”
must also comprise of the farmers themselves.
“The farmers themselves must be
part of the market chain, otherwise that monopoly will distort the whole
market.”
She said they could be under a
cooperative or an umbrella of small traders or small millers, who could control
a part of the market.
“Only then will you have a level
playing field. Otherwise, now we are seeing a structure that is not working at
all.
“The other reason why breaking a
monopoly like Bernas may be beneficial to the industry is you cannot have one
corporation controlling almost everything in the supply chain.
“It wouldn’t make sense for
Bernas to help farmers because if farmers become major producers, it would
affect their market share of the padi industry that they get from their rice
imports,” she said.
Fatimah acknowledged Bernas’
existing model which aims to help farmers, but said it was ineffective.
“After a few years of having this
model, its just not working. The farmers are still struggling.”
She recommended that Bernas be
revamped to reflect the reality of farmers on the ground, adding that they
remained just as poor as they were 20 or 30 years ago.
Food crisis
In 2008 when Malaysia had a food
crisis, she said Bernas automatically made the decision that it would not
increase its rice imports.
Back in 2007 to 2008, rice prices
surged due to export restrictions by key rice exporting countries such as India
and Vietnam, in tandem with panic buying from rice importing countries such as
the Philippines.
This resulted in an increase in
world rice prices by 117% to 149% in the first quarter of 2008.
Fatimah said Bernas having such
autonomy and decision-making power in these matters made for a very vulnerable
market structure.
She added that this threatened
food security and national self-sufficiency, which refers to a country’s
capability to produce its own food.
Fatimah’s report cited a 2018
Khazanah Research Institute paper, which argued that there was growing concern
related to food security and Malaysia’s capability to be self-sufficient in its
rice production due to high rice production costs, limited production capacity
and reliance on imports.
Officer seeks arrest of suspects for fake
paddy purchase
Dec 8, 2018, 1:28 AM; last updated: Dec 8, 2018, 1:28 AM
(IST)
Tribune News Service
Chandigarh, December 7
In over Rs 5 crore bogus paddy purchase at
Guruharsahai, the Secretary, Food and Civil Supplies, has written to the Punjab
Director General of Police (DGP) to arrest the suspects in the case as there is
enough evidence against them.
In the last week
of November, the Food and Civil Supplies Department had detected bogus purchase
of 86,939 bags of paddy worth Rs 5.6 crore.
Food and Civil Supplies Minister Bharat Bhushan
Ashu said the department had got inputs that there was movement of paddy from
other states to Punjab, following which district managers were told to recheck
the purchases and verify the same with the stocks on the millers’ premises
personally.
The department
had detected abnormal purchase of paddy at Jiwan Arain and Panje Ke Uttar
mandis by Reet Enterprises owned by Jaswinder Singh; Jagdish Chander and Sons
owned by Sandeep Kumar; and Dhruv Commission Agent owned by Rishu Mutneja.
They had
allegedly made bogus purchases of 86,939 bags of paddy in connivance with
Sunrise Rice Mill, Jiwan Arain, Guruharsahai tehsil.
It is suspected
that the miller was planning to buy paddy from other states, including Uttar
Pradesh and Bihar, where it is much cheaper than the minimum support price, and
then deliver it during milling to make a quick profit.
https://www.tribuneindia.com/news/punjab/officer-seeks-arrest-of-suspects-for-fake-paddy-purchase/695232.html
President
to visit Myanmar as India keen to boost agricultural ties with neighbours
Kovind
will visit India-funded agricultural research centre and Rice BioPark
Agricultural
technology is becoming an important skill that India is sharing with her
neighbours | Reuters
President Ramnath Kovind is
visiting Myanmar from December 10 to 14. Among his engagements will be a visit
to the Advanced Centre for Agricultural Research and Education and the Rice
BioPark, both of which have been funded by India.
Agricultural technology is
becoming an important skill that India is sharing with her neighbours in recent
years under its development partnership thrust.
In Afghanistan, India has
helped set up an Agriculture University in Kandahar. Students and faculty from
Afghanistan are coming to Pusa in Delhi regularly for their training, while the
university gets to stand on its own.
In his visit to India
earlier this year, Nepal Prime Minister K.P. Sharma Oli had mentioned that
Nepal needed to have food security and therefore needed to boost its
agriculture sector. In one of the Memorandum of Understanding that the
countries exchanged, they reaffirmed their “resolve to promote cooperation in
agricultural science and technology, agricultural production and agro
processing...''. Nepal has sought the help of the developed countries, too, to
boost its agriculture, but its leaders believe that technology from nearby and
similar terrain will certainly be better. India has agreed to work with
Nepal in areas like animal husbandry and bio-fertilisers research in indigenous
genetic resources and agroforestry.
India has extensive agricultural partnership with ASEAN. The
fourth ASEAN-India ministerial meeting on agriculture and forestry was held in
Delhi earlier this year. The cooperation is in the areas of R and D for global
competence in agriculture, seed quality control systems, organic certification
for fruit and vegetable and new techniques for diagnosis of trans-border animal
diseases.
A big focus of the
ASEAN-India partnership is in the area of rice research, especially in genetic
improvement of parental lines and developing heterotic rice hybrids.
Another agriculture partner
of India in recent times is Israel, although in this partnership, India is the
receiver of technology, specially drip irrigation.
Nel
Jayaraman, Farmer Who Preserved Traditional Paddy Dies in Chennai
Farmer and consumer activist, Nel Jayaraman, who devoted all his
life in collecting, reviving and conserving traditional varieties of paddy died
on 6 December after a long fight with cancer in Chennai. Jayaraman was so
famous that the word Nel or paddy became part of his name.
The farmer who was closely
connected with CREATE, a consumer organisation had been organizing paddy
festival since 2005. He used to give 2 kg of traditional paddy seeds to farmers
and in return took 4 kg after harvest.
Ranganathan, General
Secretary of Cauvery Delta Farmers Association said, “Jayaraman’s passion
earned the goodwill of an NRI from his village and he gave 9 acres of land for
crop cultivation and conducting training programmes”.
Jayaraman, who also
coordinated “Save Our Rice” movement, started with distribution of 15 paddy
varieties and later increased to 64 varieties. He had collected over 170
varieties of paddy seeds.
Some of the main paddy varieties Jayaraman had maintained
include:
·
Poongkar (for saline soil),
·
Kattuyanam (for flood condition),
·
Kuzhiyadichan (for alkaline soil),
·
Karunguruvai (for making biriyani),
·
Mappillai Samba (for high energy),
·
Samba Mosanam (for flat rice),
·
Arupatham Kuruvai (short duration variety).
This great cultivator had
also received the best organic farmer award by Tamil Nadu government in 2011
and was invited by the International Rice Research Institute in Philippines.
After doctors diagnosed him
with cancer, actor Sivakarthikeyan admitted him in a private hospital and also
agreed to take care of his son’s educational expense. Chief Minister Edappadi
K. Palaniswami had offered Rs. 5 lakh.
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