Thursday, December 01, 2016

1st December,2016 daily global,regional and local rice e-newsletter by riceplus magazine


December 01, 2016

LAHORE: Consumers suffer because of poorly regulated power/gas supply/tariffs, corrupt tax machinery, imprudent drug regulations, unchecked food adulteration, no action against substandard products, and noncompetitive practices. Regulators around the world improve the quality of life and reduce the cost of living of their citizens through strict regulations. They do not allow companies to charge consumers for inefficiencies. In power sector, for instance, the regulators allow line losses to happen, unheard of in most of the countries with same per capita income as that of Pakistan. The regulator factors in all the inefficiencies of public sector power producers that produce electricity at double the rates than the power produced by private sector independent power producers. Evident from their yearly balance sheets, these Independent Power Producers (IPPs), despite producing power at high rates earn hefty profits. The domestic and industrial consumers have to buy power at exorbitant rates only because of these inefficiencies.
The culture of including high operational losses in the tariffs has been adopted by all the public sector utilities. The line losses of two natural gas distribution companies, which were nominal two decades ago, have shot up to 7-10 percent. This culture has become so strong that when the Re-gasified Liquefied Natural Gas was inducted in the system and supplies to the industrial sector, the gas company included its 10 percent gas loss in the tariff. This is despite the fact that the gas loss like electricity loss is zero in industries which could be checked by the meter reading from the supply center to the meter installed at factory premises. The domestic consumers also pay for gas losses, which in fact is gas theft. The regulator should penalize the distribution companies instead of making gas dearer for the consumers.
There is an informal sector in the economy that parades its wealth openly. The tax collectors in many cases have documentary evidence of ill-gotten wealth but they fail to nab the tax evader obviously at some consideration. Low tax collection due to informality compels the government to operate on loans and curtail development. Then there are so called formal businessmen, who pay nominal taxes by underreporting their production or under-invoicing their imports. In both cases, the government loses hefty revenue. The consumers, however, do not get any relief. If a documented beverage manufacturer underreports production, the price of its beverage remains the same as that on sales tax paid production.
There are certain product checks for which stringent standards have to be adopted for public safety, health and welfare. In some cases these standards are complied by the manufacturers on their own because the government lacks facilities to test those standards. For instance Euro II standards for cars and motorcycles are left to the manufacturers to comply as the government regulator has no facility to check the emission standards. There is a possibility that some multinational brands might be complying with the standards while many small motorcycle producers are violating the standards thus charging higher price of Euro II engine or older high emission engines.
Most of the gas appliances are substandard. Legally these appliances cannot be marketed in the country as they are highly inefficient and consume more gas than the standardized appliances.
The regulator has never even conducted raids on the premises of manufacturers. Adulteration is a deep-rooted menace in Pakistan. Milk adulteration is common and has not been addressed anywhere in Pakistan. So much so some documented dairy producers marketed non-milk dairy products for a long time before being apprehended by Punjab Food Authority but nowhere else in the country such a measure was taken. Red chili powder is mixed with brick dust. Most of the adulterants are highly injurious for the consumers, who pay the price for a pure healthy food but get poisonous one in return.
The Competition Commission of Pakistan has become toothless as many of the cartels it unearthed never got convicted even after 10 years. They are hiding behind long and cumbersome judicial process. The drug regulator is more interested in keeping the prices stable without ensuring the availability of many life saving drugs that have vanished from the market owing to price issue. These drugs are replaced by smuggled substitutes, which are being sold at very high prices much to the dismay of patients

https://www.thenews.com.pk/print/168835-Consumers-continue-to-suffer-on-regulatory-woes







China allows 14 Indian firms to export rice

The companies include LT Foods, maker of the Dawat brand, KRBL, maker of the India Gate brand, and Kohinoor Foods

Sanjeeb Mukherjee & Jyoti Mukul  |  New Delhi November 30, 2016 Last Updated at 01:01 IST


Land routes opened for basmati exports to Bangladesh, NepalChinese agency to inspect basmati rice production facilities for insectsGI Registry holds meeting to decide on GI tag for Basmati rice from Madhya PradeshBasmati rice stocks gain; Kohinoor Foods, LT Foods up over 5%Basmati exports on credit banned
China has agreed to import basmati rice from 14 companies in India, opening a new vista for the country’s rice exports.The companies include LT Foods, maker of the Dawat brand, KRBL, maker of the India Gate brand, and Kohinoor Foods. Five companies that wanted to export to China and were registered with the authority for phytosanitary certification, the National Plant Protection Organisation (NPPO), did not qualify and have been told to improve their quality before applying afresh.China is one of the world’s largest importers of rice, but it had so far not allowed imports of basmati rice. Chinese prefer low aroma and shorter grain rice from India. The Chinese had earlier claimed basmati rice consignments contained beetles and were unfit for consumption, an allegation Indian authorities have denied. The Chinese finally agreed to inspect all 19 basmati rice-making companies in India registered with the NPPO in September.With this clearance, India can look to lower its trade deficit with China that has ballooned from $1.1 billion in 2003-04 to $52.7 billion in 2015-16.




On the list
“India used to export 4,000-5,000 tonnes of basmati rice annually to China through Hong Kong. After this clearance, the rice can directly be sold in China,” said Rajen Sundaresan, executive director, All-India Rice Exporters’ Association.India produces over 70 per cent of the world's basmati but this constitutes a mere six per cent of the rice grown in the country. Basmati made up for 57 per cent of India's rice exports in 2014-15.Basmati exports have increased from Rs 28.24 billion in 2004-05 to Rs 275.98 billion in 2014-15 and their share of India's exports from 0.6 per cent to 1.3 per cent. West Asian countries bought 75 per cent of Indian basmati exports in 2014-15.


 ‘Lifting of rice QR should also benefit farmers’



AS the lifting of the quantitative restriction (QR) on rice is expected to boost government revenues, the state-owned think tank urged the Duterte administration to set aside P18 billion a year to compensate farmers.‘In a policy note, titled Compensatory payment scheme for rice farmers after tarification, Philippine Institute for Development Studies (Pids) senior researcher Roehlano M. Briones and research analyst Lovely Ann C. Tolin said the removal of the rice QR is expected to boost government revenues due to more rice imports.
At a tariff rate of 35 percent, the government is expected to generate P27 billion to P28 billion in duties from rice imports, which could reach as much as 2.26 million metric tons (MMT) a year.
“Earmarking the rice-tariff revenue to pay for the compensation scheme is a feasible funding strategy. Residual money from the tariff revenues could be used for other product-enhancement measures for rice farmers,” the authors said. The influx of rice imports, the study stated, will lower paddy rice prices by P4.56 and P6.97 per kilogram at the farm gate and retail level, respectively.
The impact on farmers’ incomes of the removal of the QR, the researchers said, should compel the government to compensate them. Farmers cultivating 2 hectares of irrigated land should receive around P19,000 a year, according to the study.“This is greater than transfer per household from the Conditional Cash Transfer (CCT) Program, which is P15,000 for three children. Note that compensatory payments can be received simultaneously with the CCT,” the researchers said.
The researchers said the government can adopt a payment compensation scheme. Between 2017 to 2022, this can be done using the Registry System for Basic Sectors in Agriculture. Farmers or their heirs can receive compensation which is computed using the National Food Authority’s (NFA) support price of P17 per kg and the cost of production in 2012. The compensatory payment, the study stated, can be divided by the area harvested. This will be distributed per cropping season or twice a year.
“Tarification of the Philippine rice sector by 2017 is inevitable. Since our analysis suggests massive fall in domestic prices, it is imperative to provide farmers a measure for income support,” the study read. In October the National Economic and Development Authority (Neda) said the Philippines could impose a tariff of as much as 50 percent once the rice-import quota is removed in July 2017.
A Neda official told the BusinessMirror that the opening tariff that it will impose will be between 40 percent and 50 percent for all imported rice that will enter the country.A tariff rate of 50 percent is within the bound rate set by the World Trade Organization (WTO). This is, however, higher than the 35-percent inbound tariff imposed on rice shipments from Southeast Asian countries under the Asean Free Trade Agreement.Economists said, however, that the Philippines may be allowed to impose a much higher tariff if it could justify the need to do so, as in the case of Japan.When Japan converted its QR on rice to a tariff, Tokyo set an opening tariff of 400 percent
http://www.businessmirror.com.ph/lifting-of-rice-qr-should-also-benefit-farmers/


Thai rice exports pick up, will meet 2016 target - commerce ministry

by Reuters
Wednesday, 30 November 2016 06:36 GMT
BANGKOK, Nov 30 (Reuters) - Thailand's rice exports have improved and the country is currently on track to meet its 2016 rice export target of 9.5 million tonnes, the commerce ministry said in a statement on Wednesday.
As of Nov. 28, Thailand, the world's second-biggest rice exporter, had exported 9.18 million tonnes, up 8.7 percent from the same period last year, the ministry said. The exports were worth around $4.16 billion, up 3.55 percent from last year.
"Thailand's rice export situation has begun to improve overall," Duangporn Rodphaya, director-general of the ministry's Foreign Trade Department, said in the statement. "With positive factors, it is conceivable that in 2016 Thailand will meet its 9.5 million tonnes rice export target."
Factors boosting the likelihood that exports will make the target include competitive pricing, higher rice quality, and a seasonal increase in the rice export volumes that typically occurs in the last quarter of the year, the official said.
The Thai benchmark 5-percent broken rice <RI-THBKN5-P1> price dropped to $342 a tonne on Nov. 16, its lowest in 13 months, because of low foreign demand. It has since improved and was quoted at $350-$360 per tonne on Tuesday.
Thailand's ruling junta has rolled out a series of rescue packages for rice farmers in recent weeks amid low grain prices.
Rice farming employs millions of people and the agricultural sector accounts for 8 percent of Thailand's economy making the sector, and farmers, a powerful political force.
($1 = 35.60 baht) (Reporting by Patpicha Tanakasempipat; Editing by Amy Sawitta Lefevre and Kenneth Maxwell)


BPOs under Trump, Duterte: Waiting for the next big wave

By Catherine Elizamarie N. Pillas & Jonathan L. Mayuga
AT past 6 in the evening, P. Campos Street in Dasmariñas City, Cavite, is engulfed by a gray mist. There Susan (not her real name) stands almost every day for five days.
There, just outside the gates of a housing subdivision where she lives, Susan waits for a ride to work at a commercial center in Pala-Pala.She works at iQor, a business-process outsourcing (BPO) company, which rents a huge space at SM Pala-Pala. It is the only BPO firm that operates in Dasmariñas City, a first-class city in terms of income classification and currently the largest in terms of area and population in the province of Cavite.“It is easy to go to work for me now,” she told the BusinessMirror during the 10-minute ride to SM Pala-Pala. “Our office is nearby and I can afford to sleep longer.”Susan said she previously worked for another BPO company in Ayala, Makati City.
“I spend at least six hours on the road every day to go to work and back home after our shift,” she said adding that she spends at least P100 a day for bus fare. “If I am lucky, I get to sit on the bus.”From the city’s center to Pala-Pala, it takes about 10 minutes to 15 minutes using public transportation. From elsewhere in the city, traffic notwithstanding, Pala-Pala is less than an hour away.More often, when all the seats are taken, Susan has no choice but stand up and wait for other passengers to alight before she is able to sit down on the way to Ayala.“It was really difficult,” she said. “Fortunately, iQor is here now.”
iQor
FLORIDA, United States-headquartered iQor started operation in Dasmariñas in the late 2014 and remains the only BPO company operating in the city. Early this year, it rented space at a shopping center adjacent to the building where its first offices were located.The company’s branch in Dasmariñas maintains eight different but mostly US accounts, and employs about 5,000 employees—and growing. It is currently hiring more employees.Employees of iQor are mainly from the city and other towns of Cavite and a few from as far as Laguna, Batangas and Metro Manila, such as Las Piñas City.
Early this month, iQor announced the opening of contact centers in Iloilo and in Bacolod, Negros Occidental.The additional 150,000 square feet and more than 2,500 workstations will expand iQor’s service capacity for leading technology, telecommunications, retail and financial services brands, the Saint Petersburg, Florida-based iQor Inc. said on November 17.
According to iQor, it has 40,000 employees providing customer interaction and product support solutions in 18 countries.
The new centers in Iloilo (Iloilo Business Park, Iloilo City) and Bacolod provide further geographic diversity to iQor’s existing presence in Clark, Davao and Dasmariñas, bringing the total number of iQor employees in the Philippines to more than 16,000, the company said.
Susan hopes the independent foreign policy of President Duterte would not take its toll on the BPO-information-technology (IT) sector, as well as that of his counterpart in the US, President-elect Donald J. Trump.
Trump + Digong
SINCE the business-process management industry’s rise to become a pillar of economic growth, the government and the private sector have been striving to spread the industry’s reach toward less-developed corners of the country.
But with clouds of uncertainty hovering over the political landscape of the Philippines and the US, the public-private drive to spur BPO growth in the countryside has reached the start of a steep incline.
In the run-up to the US elections, Trump has bannered the pledge to “bring back” jobs to America. One of the ways suggested was to impose heavier taxes on American firms who outsource jobs.
“Unlike Clinton, Trump did not comprehensively outline his domestic and foreign policies,” according to a paper from Control Risks web site. “As a result, there is considerable uncertainty about which policies he will pursue in office and how aggressively he will do so.”
Following the business mogul’s victory, Socioeconomic Planning Secretary Ernesto M. Pernia commented that if Trump’s comments be made into policy, BPOs in the Philippines could suffer.
In the Philippines Duterte has not minced words in conveying his distaste at White House’s perceived ‘meddling’ in local affairs, especially on criticism of his bloody, anti-drug campaign.
The firebrand has lashed out against top US diplomats, and has, on more than one occasion, swore at the incumbent President Barack Obama.
No worries
DEVELOPMENTS in the diplomatic sphere have sent jitters in the local BPO industry, which has seen a meteoric rise in a matter of six to eight years and now provides employment for 1.15 million workers. The industry is also estimated to contribute every year 4 percent to 6 percent to the country’s GDP.
This is all the more significant as the industry aims to provide more jobs to Filipinos in rural areas, targeting to generate work in BPO hubs outside of Metro Manila to 500,000 Filipinos.
For the newly created Department of Information and Communications Technology (DICT), however, the rhetoric of both sides in the absence of any real policy discouraging the industry would not do any real damage to the prospects of the $22-billion BPO industry.
“[The US] doesn’t have a policy out on the outsourcing industry, unlike before when there was a bill that was introduced that got us worried,” Emmy Lou Delfin, DICT’s Next Wave Cities program manager, said in a phone interview. “We’re not really worried about the situation; every week there’s a potential inquiry from an American locator. It’s not really something to worry about.”
Diversifying services
ACCORDING to Delfin, even as the country sees no immediate danger in the interest of American companies to keep outsourcing their activities to the Philippines, the country has been diversifying its services to attract other countries such as Australia, Japan and Singapore, among others.
Information Technology and Business Process Association of the Philippines’s (IBPAP) Roadmap 2016 to 2022 indicates that 70 percent of the outsourcing work received by Philippines-based BPOs comes from the North American market, with the remaining 30 divided among the Middle East, Europe, Australia and East Asia and the Pacific
If one looks at the employment contribution, it’s evident the industry has provided a means of living to an increasing number of Filipino workers, and will continue to do so in the next six years, Delfin added.
The IBPAP, however, declined to comment on the prospects of the industry with President-elect Trump at the helm of the US government, and the past tirades of Duterte.
Even as the industry is keeping mum on the implications of increasingly antagonistic relations between the Philippines and the US, the BPO industry’s continued strength indicate that more and more Filipinos will rely on the sector for their livelihood under the Duterte administration.
BPO hubs
ACCORDING to the IBPAP’s 2016 to 2022 Roadmap crafted with Frost & Sullivan consultancy firm, 14 percent, or one in every seven jobs, of the country’s employment requirements will be fulfilled by the IT-BPM sector once 2022 comes around. The projection is based on Philippine labor-demand projections for 2016 to 2022.
Not only will the full-time employee (FTE) work force balloon from 1.15 million by end-2016 to 1.8 million by 2022, but a growing segment will come from the areas outside of Metro Manila as IBPAP and the DICT try to establish BPO hubs in the countryside.
This program, dubbed the “Next Wave Cities Program,” aims to spread the benefits of the booming BPO industry to less-developed areas, in pursuit of the past and present administration’s goal of “inclusive growth”.
“There continues to be a push as far as the IBPAP and as far as Roadmap 2022 is concerned. We’re pushing our expansion to the countryside, these cities, both in New Wave and emerging cities, are critical in terms of us achieving our goals,” IBPAP Board Chairman Sebastian L. Reyes said in a separate interview. “They will be the ones who will have the talent that will push the growth of services.”
Next wave
EVERY two years the government and the IBPAP release a list called Next Wave Cities. These are essentially cities that have gained high rankings on the four criteria of talent availability, infrastructure, cost of doing business and business environment and risk management.
These cities are also deemed ready to host BPOs. The ranking also identify centers of excellence and emerging cities.
Delfin said that, as of this year, Next Wave Cities have contributed 300,000 FTEs to the total work force.
Reyes said this push to spread growth is especially significant for recovering areas, such as Tacloban, which is now getting back to its feet after being ravaged by Supertyphoon Yolanda in 2013.
“In the Visayas, we’re looking at past hosts of BPO companies, which, hopefully once they recover, can host again in Tacloban and Palo, Leyte,” Reyes said. “These are showing potential.”
Aside from the calamity-struck Visayas region, new areas such as Balanga in Bataan have just welcomed GenPact Philippines, the local unit of New York-based business-processing management firm.
New areas that are expected to see growth in employment and increased economic activity due to the entry of BPOs are Puerto Princesa and Laoag.
The IT-BPM industry is eyeing total revenue to increase from an estimated $22.9 billion in 2016 to $38.9 billion by 2022.
Dasmariñas City
EARLY this year, the IBPAP named Dasmariñas City among 10 new areas on the growing list of locations that will support the growth of the  IT-BPM sector outside Metro Manila.
The others are Baguio, Cagayan de Oro, Dagupan, Dasmariñas, Dumaguete, Lipa, Malolos, Naga, Santa Rosa in Laguna and Taytay in Rizal.
These areas emerged on top of 42 cities identified and evaluated by the IBPAP, the  Department of Science and Technology-Information and Communications Technology Office (now called the DICT) and Leechiu Property Consultants (LPC) for their potentials based on factors such as talent pool, infrastructure, good business climate, and cost competitiveness.
Situated about 27 kilometers south of Manila, Dasmariñas is the largest component city and the 12th-largest city in the Philippines.
Dasmariñas has a population of 659,019, according to data from the Philippine Statistics Authority.
In an interview, Mayor Elpidio F. Barzaga Jr. told the BusinessMirror he is confident that more BPO companies would soon find Dasmariñas City among the most suitable places to do business.
After being picked as one of the 10 Next Wave Cities, Barzaga said he immediately wrote IBPAP, expressing his gratitude, with the promise to make the city an IT-BPO hub.
Strategic location
ACCORDING to Barzaga, Dasmariñas is strategically located as compared to other local government units (LGUs) in the province of Cavite.
Dasmariñas is very accessible, to Metro Manila, and other towns in Cavite all the way to Tagaytay City and Batangas, he added.
The city official said iQor told him the company has approximately 5,000 employees in Dasmariñas.
“They have very good prospects in the city.”
iQor, he added, is expanding, which only shows that Dasmariñas is providing a good investment climate.
According to Barzaga, he expects other companies to start scouting for office spaces in Dasmariñas in the coming months.
“So far, we only have iQor, which is expanding. But I expect IT-BPO companies to come in in the ensuing months,” he said.
Commercial, industrial
OVER the years, from an agriculture town, Dasmariñas has evolved into a commercial and industrial city.
It is currently one of the fastest growing LGUs in Cavite.
There are numerous commercial establishments, which include major shopping malls, fast-food restaurants, grocery and convenience stores, restaurants and other service-oriented businesses in Dasmariñas’s City Centre and central business district.
Meanwhile, industrial establishments are in the outskirts of the city.
It boasts of three industrial estates, namely: First Cavite Industrial Estate (FCIE) in Barangay Langkaan, Dasmariñas Technopark located in Barangay Paliparan I and NHA Industrial Park in Bagong Bayan.
There are over 300 factories and business establishments scattered in the different barangays.
According to Barzaga, Dasmariñas has a pool of talents with excellent English communication skills that fit the requirements of IT-BPO companies.
He said the city boasts of learning institutions, including college and universities that are highly competitive.
In fact, Dasmariñas is also called the “university city” of Cavite because it is the recipient of dispersal thrusts of several universities based in Metro Manila.
Dasmariñas is home to the De La Salle University (DLSU), which offers various social science and business courses. The institution also offers medical courses, operates and manages a hospital, the DLSU Medical Center.
Other university and college branches are from the Technological University of the Philippines, the Philippine Christian University, National College of Science and Technology, Emilio Aguinaldo College and Saint Paul College (Island Park branch).
Business-friendly
AS local chief executive of Dasmarinas, Barzaga said it has always been his policy to promote a business-friendly environment anchored on good governance.
“Our basic requirement, the policy of the city government from the time I became a mayor, we want Dasmariñas to be investment-friendly. We know the basic conditions,” he told the BusinessMirror. “For Dasmariñas to be an ideal place for investment, we have to solve the basic problems.”
According to Barzaga, transparency is a policy of the local government under his watch.
“We have to address the basic problems pertaining to peace and order, traffic and environment, garbage,” he said.
Transportation, Barzaga added, is not a problem because of its road networks leading to Manila, Laguna and Batangas.
To encourage IT-BPO companies in doing business in Dasmariñas, BPO companies like iQor are entitled to tax holiday, as well as other benefits provided to businesses located within the Philippine Economic Zone Authority Special Economiz Zones.
Barzaga bared that SM and Robinson requested the city government to issue an endorsement to have certain parts of their malls declared as Peza zones.
“If there are owners of buildings here [Dasmariñas] who would like to establish a BPO and who want to have an endorsement to be covered by the special law, the city government is willing to help,” he said.
Good governance
ACCORDING to Barzaga, he has a strict policy against corruption. Businessmen, he said, need only to pay permits and the taxes due to the local government to be able to put up shop in Dasmariñas.
Peace and order, he said, is not a problem as members of the Philippine National Police (PNP), through the Dasmariñas Police Station, are always on their toes.
“Our police are very visible,” he said. “Even our local traffic enforcers ensure a smooth flow of traffic.”
All intersections in the city, he added, have traffic lights installed by the city government.
Some areas, he said, even have closed-circuit television (CCTV) cameras to deter crime.
“In the next few months, we plan to put up more CCTV cameras,” he added.
Barzaga claims he is “hands on” when it comes to running the city to ensure the delivery of basic social services. Dasmariñas, he said, recently completed the construction of its own public hospital.
Next year, he added, the city targets to establish a university fully funded and managed by the city government.
High hopes
ACCORDING to Barzaga, Dasmariñas is a potential BPO hub in the Southern Tagalog region because of available infrastructure, such as roads and bridges.
He said the establishment of more IT-BPOs would boost employment opportunities not only for the city’s residents but also the other cities and towns near it.
Settling in the city is a breeze for employees of various companies in Dasmariñas, as the city boasts of 70 different residential subdivisions.
In fact, Barzaga said only about 20 percent of the city’s residents are native of Dasmariñas, with 80 percent coming from all over because of the employment opportunity offered by commerce and industry.
According to Barzaga, Dasmariñas is now among the fastest-growing economies in the region, more than half of the city’s 9-hectare land area is still undeveloped.
“We have the space. As a matter of fact, only about 50 percent of the city’s total land area of 9 hectares [is] developed,” he said. “We expect BPOs to be growing more and more.”
“The Philippines remains a terrific place to conduct business,” iQor CEO Hartmut Liebel was quoted in a statement as saying. “Government officials at all levels remain engaged and helpful, as we grow due to client demand and the service-oriented, tech-savvy talent we continue to find in labor markets across the Philippines.”
iQor, a global provider of BPO and product support services, today announced that it has expanded its service operations in the Philippines with the opening of  Island Region.
“We’re excited to expand our operations in some of the fastest-growing regions of the Philippines,” Gary Praznik, iQor COO, was quoted in a statement as saying. “The labor force, infrastructure and economic development support in Iloilo and Bacolod are fantastic, and we are excited to create local jobs for local talent.”
The company is actively seeking to hire more than 2,000 qualified individuals to help support client growth in customer care, technical support, sales and collections.
Road-map goals
THE IT-BPM and global in-house center (GIC) industry in the Philippines has grown at an annual rate of 30 percent over a decade, faster than the growth of the global offshore services market, the IBPAP Roadmap 2016 to 2022 said.
Collectively, the industry provides services for a wide range of prominent Fortune 1000 firms in North America, Asia and the European Union. The Philippines’s share of the global IT-BPM and GIC market is estimated at approximately 9.5 percent.
As it has grown, the industry has diversified significantly in breadth, scale and maturity of services. An ambitious forecast embodied in an industry road map of revenues of $25 billion and 1.3 million direct employees by 2016 appears to be within reach.
Expansion into Next Wave Cities and towns has increased with 150,000 FTEs spread across Tier 2 and Tier 3 towns across the country, the IBAP report said.
The Philippine IT-BPM work force grew at an average of 21 percent annually between 2007 and 2011.
The rapid growth in employability across Next Wave Cities has increased the pool of talent supply in the Philippines, the report said.
In the O2P and BPAP surveys of 2009 and 2012, 92 percent of respondents (companies of different sizes and portfolio offerings) said they planned to increase their employee base; with most planning to increase by under 5 percent to as much as 50 percent.
The industry is projected to earn $25 billion in revenues and employ 1.3 million and 3.2 million Filipinos directly and indirectly by 2016. At this size, it could account for about 8 percent of Philippine GDP.
If these targets are reached, the Philippine IT-BPM and GIC industry will have consolidated over 10 percent of the global IT-BPM market. This share will be maintained at least until 2016, when global market is expected to be between $240 billion and $250 billion (Everest Global estimate as of 2012)
http://www.businessmirror.com.ph/bpos-under-trump-duterte-waiting-for-the-next-big-wave/






Nigeria’s local rice production target being met, export set for 2017 – CBN

Related News

The Central Bank of Nigeria, CBN, on Tuesday said its Anchor Borrowers Programme for the promotion of agriculture had set the country to begin exportation of rice by 2017.
The News Agency of Nigeria, NAN, reports that the Anchor Borrowers Programme of the CBN and the Presidential Committee on Rice Production launched in July had jointly set the target.
The Acting Director of Corporate Communications of the apex bank, Isaac Okorafor, said this in Yenagoa at a sensitisation workshop for farmers.
The theme of the workshop is entitled: “Promoting Stability and Economic Development’’.
According to him, farmers in Kebbi, Jigawa, Ebonyi, Sokoto and Cross River states, among others, have already keyed into the programme, resulting in massive rice cultivation.
He said the country would achieve self-sustenance in rice production if the momentum was sustained, adding that the country should commence exportation of locally produced rice by 2017.
Mr. Okorafor said Kebbi State had already harvested one million tons of rice, adding that Ebonyi’s harvest had outstripped the earmarked production for the year.
“The development is encouraging and by the end of 2017, we will not only meet our national demand which is between six and seven million tons but have surplus to export.
“We must rid ourselves of eating foreign rice that has been stored for over nine years in Thailand, Vietnam and India. Nigerian rice is fresh and healthier.
“We should eat Nigerian rice provided for by the CBN Anchor Programme; 50 Kg of local rice is now N8, 000 in Ebonyi. Already, the Abia Government has ordered rice from Ebonyi for Christmas,’’ he said.
He further said: “What we have done with this programme so far is to create jobs through farming, especially for the unemployed youths.
“Nigerian youth must wake up, dust themselves up and join this worthy campaign.
“Remember that the status of our farmers is now better due to the support they are receiving as a result of government’s policy.
“Our currency is weak because we engaged in needless importation of all kinds of food stuffs, including tooth picks; the government is determined to stop this.’’
The Branch Controller, CBN, Yenagoa, Oke Nwajah, said the state was blessed with rich wet soil that supported rice cultivation.
He therefore, urged the farmers to take pride in farming, adding that the Anchor Borrowers Programme was an intervention to reduce their burden


Rice exports on track to reach 9.5m tonne target

Freshly harvested rice. (File photo)
- +
Rice exports totalled 9.18 million tonnes in the first 11 months and the Commerce Ministry is confident of attaining its target of 9.5 million tonnes this year.
Duangporn Rodphaya, director-general of the ministry's Foreign Trade Department, said as of Nov 28, the approved amount for export was up 8.7% on the same period last year. The export value for the period was US$4.159 billion, up 3.55% year-on-year.
She said the department was confident that rice exports would reach the target of 9.5 million tonnes in 2016.
In addition to the increased volume, prices had also risen for white rice, fragrant rice and glutinous rice. 
The top 10 buyers of Thai rice are Benin, Ivory Coast, Japan, China, Angola, Cameroon, Indonesia, Malaysia, Congo and Mozambique.
Ms Duangporn said Thai rice could compete better at these prices on the world market because it was known for its quality by foreign importers and consumers.
She said the rise in exports in the final quarter of the year was fuelled by buyers stocking up on rice for sale during the New Year and Chinese New Year, particularly in China, Hong Kong and Singapore.
Earlier in mid-November, Thai Hom Mali was named the world’s best rice at the annual World Rice Conference held in Chiang Mai, which was attended by at least 600 international traders. More than 50 samples from many countries were considered during the judging. Second-place went to Cambodia’s fragrant rice, and third to Japonica rice from the US. 
Bangkok Post




            A Week in Washington with Colombia Film Crew includes U.S. Rice  

U.S. rice - ready for the close-up
WASHINGTON, DC -- A production crew with SaborUSA, a marketing campaign in Colombia that promotes U.S. food and beverages and American culture, spent a week traveling around the Washington, DC, area this fall filming segments for their popular TV cooking show "I Love SaborUSA."

The TV show is the flagship of a marketing campaign sponsored by the U.S. Department of Agriculture (USDA), and hosted by Karina Correa, a bilingual restauranteur and food blogger.  Each episode has a different theme such as holidays, exercise, healthy eating, and U.S. regional cuisine.  In addition, the marketing campaign also links the TV show with an interactive website, smartphone application, and social media.

USA Rice caught up with Correa and her crew at Rosa Mexicano, located in Washington's Penn Quarter neighborhood.  While Correa went behind the scenes in the kitchen with sous chef Francisco Pablo to help prepare a dish using U.S. rice, Mike Conlon, Counselor at USDA's Office of Agricultural Affairs in Bogota, Colombia, talked about the integration of U.S. food products with Colombian cuisine.    

"Colombia is the largest market for U.S. food products in South America," said Conlon.  "People in Colombia love rice; it's a staple of their diet."  U.S. rice is showcased in this edition of the multi-media marketing campaign offering viewers new recipes and exciting ways to incorporate it into the Colombian consumers' daily life.

SaborUSA, a USDA Foreign Agricultural Service-led Global Broadbased Initiative (GBI) with 20 cooperators, is growing in popularity in Colombia.  The segment featuring U.S. rice was uploaded to "I love SaborUSA" on YouTube on
 October 28 and within the month received more than 180 views

Commerce ministry swaps paddy export for purchase program

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By Su Phyo Win   |   Thursday, 01 December 2016
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The Ministry of Commerce has cancelled plans to allow paddy exports as part of measures to address a slump in prices. Instead the government intends to buy paddy directly from farmers, some of whom have criticised the proposed floor price for the government purchase program for being too low.
U Khin Maung Lwin, assistant secretary at the commerce ministry told The Myanmar Times that paddy exports were being abandoned because of the potential impact on the livestock industry.
“Broken rice and paddy husk [which come from harvested paddy] are very useful for the livestock industry [as animal feed],” he said. “And there are a number of rice millers in the country [that rely on paddy for business]. We considered paddy export as a measure but it is not possible at the moment.”
U Myo Tint Htun, deputy secretary at the Ministry of Agriculture, Livestock and Irrigation said the government had banned paddy exports in previous years because it was better to export finished products.
“Selling paddy [abroad] is quite risky and you have to a much larger quantity of paddy than rice to get the same revenue,” he said. “Also testing the quality of paddy for export will be difficult.”
Rather than permit paddy exports, the commerce ministry is asking for K15 billion from the government to buy paddy at a minimum price from farmers in Yangon, Bago and Ayeyarwaddy regions,” said U Khin Maung Lwin.
“The cabinet has approved the decision to give K15 billion to the Ministry of Commerce for purchasing paddy from [those] three regions,” he said. “We are going to start the process in December.”
Paddy purchasing groups will be formed under the temporary Agricultural Product Management Committee (APMC) – as stipulated in the Protecting Rights and Enhancing Economic Welfare of Farmers Law, which was revised in 2013.
The APMC is made up of regional government officials, members of the Union parliament and representatives from rice trading and milling associations, said U Khin Maung Lwin.
“Under the protecting rights of farmers law we have to support [them] or buy the paddy at a certain price if the prices fall [too much],” he said, adding that the price of paddy had fallen to levels that made it hard for farmers to cover production costs. “We are sure this is the best way of getting farmers a higher price.”
But the price at which the commerce ministry intends to buy has sparked complaint from the agricultural industry. The ministry is planning to buy 100 baskets of average-quality paddy for K380,000 said U Khin Maung Lwin. However, farmers report that with better weather drying out soaked paddy and expectations of government action, prices in several areas are already higherthan that.
U Thein Aung, president of Freedom of Farmers League, told The Myanmar Times that the price for 100 baskets in Ayeyarwaddy Region was around K400,000.
“We are asking for higher paddy price,” he said. “But when the government plans to buy at a price lower than the current market price, it’s proof that the ministry thinks the market price is fair. I can’t understand why they would offer less than the market value.”
U Khin Maung Lwin said the aim of the program was to help cover farmers’ production costs, “not make them rich”, he said. The cost of production was what was determining the government purchase price, not the market price, he added.
The cost of producing 100 baskets of paddy varies widely with region, farmer and land and paddy quality. Nay Pyi Taw region farmers say the cost of production 100 baskets can range from K280,000 to K410,000.
http://www.mmtimes.com/index.php/business/23992-commerce-ministry-swaps-paddy-export-for-purchase-program.html



Some millers are exploiting desperate farmers: Sokhon

Thu, 1 December 2016




Agriculture Minister Veng Sokhon has accused private sector rice millers of exploiting desperate farmers. Photo supplied
Agriculture Minister Veng Sokhon accused private sector rice millers of exploiting desperate farmers, arguing that if they really lacked capital to purchase rice paddy as they claimed, they would have been quick to snap up the government’s $27 million emergency loan package. Speaking yesterday at a meeting between government and private sector rice industry leaders, he said the loan package offered in September had failed to stop the flood of rice paddy into Vietnam.“Despite the fluctuations in rice prices, it is not the main issue for why farmers are exporting paddy,” he said. “I suspect that the issue with the rice industry is not external, but rather the genuine unwillingness of millers to help our farmers.”

Sokhon said the $27 million loan package was designed to give local millers sufficient operating capital to purchase local rice paddy, and to beef up their storage capacity. However, only $1.5 million of the package has been disbursed to just a handful of applicants.“What is the main issue weighing down the rice sector? Is it really a shortage of capital?” the minister said incredulously.Sokhon announced that Prime Minister Hun Sen has approved an additional $15 million loan package solely for developing rice storage and warehousing capacity. But he cast doubt on the willingness of rice millers to respond.
‘We really need the loans’

Kao Thach, CEO of the state-owned Rural Development Bank (RDB), the institution in charge of disbursing the emergency loans, said it was incomprehensible to him why millers were reluctant to apply.“We provide a fast and easy loans and it is not complicated,” he said. “I have no idea why we are in this situation if rice millers were really facing a shortage of capital.”

Sok Puthyvuth, president of the Cambodian Rice Federation (CRF), said that the sector needed time to ensure that once millers took the loans they would be used effectively and transparently.“We are trying to work together in order to use the budget transparently,” he said. He argued, however, that the 7 percent interest rate attached to the loan was too high and should be lowered.We really need the loans from the RDB, but the interest rate should be less than what commercial banks offer,” he said.Sokhon retorted that as an “emergency” loan, there should be no excuses for a delay and that the CRF should sort out its budget transparency issues as soon as possible
http://www.phnompenhpost.com/business/some-millers-are-exploiting-desperate-farmers-sokhon


News7 impact: Raids conducted on many rice mills in Kalahandi

Published on 01 December 2016 By Prameya News7 (author)


Bhubaneswar: A Supply Department sub-divisional squad on Thursday conducted raids on rice mills at different places in Kalahandi district and seized thousands of rice and paddy bags from millers.The squad conducted the raids following complaints in this regard were aired in the News7 TV channel repeatedly.During raids, the squad seized 11,000 bags of paddy and 2,400 packets of rice from SJM Mill, 31,000 packets of new rice from the Samaleswar Agro Mill at Gajabahal and 4,000 bags of rice from the RK Modern Mill at Kesinga.

The millers procured thousands bags of paddy from farmers before the Mandis were opened by the State Government for the current Khariff season.It may be noted that farmers are forced to sell paddy at low prices to millers as the Supply Department delays procuring paddy from them. Besides, a cumbersome process for sale of paddy at Mandis and release of payments also discourage famers, who are in bare need of money.More raids would be conducted in coming days, said officials

Cultivation of aromatic rice varieties gaining popularity in Rangpur, Dinajpur
Our Correspondent


RANGPUR, Nov 29: The cultivation of different varieties of aromatic rice is gaining popularity among the farmers of Rangpur and Dinajpur districts.Due to congenial weather condition and timely supply of necessary agri-inputs, the farmers of the region are optimistic about getting a bumper yield of the paddy this season.According Department of agriculture Extension (DAE) farmers have cultivated different varieties of aromatic rice  across the region this year, of which BRRI- dhan34, BR-5, Kalijira, Badshabhog, Zirakatari, Kataribhog, Chinigura, Uknimadhu and Basmati varieties are much popular among the cultivators.

DAE sources said farmers across the region are showing their interest in its large scale farming on account of growing demand and high prices.Harvesting of almost all varieties is going on and growers are jubilant to achieve a good yield of the crop, sources also said. Farmers said medium and low lands are suitable for cultivation of aromatic rice. They also laid emphasis on availability of adequate seeds to enhance its farming to a great extent.

Joynal Miah, a farmer of Anderkota village of Mithapukur Upazila in Rangpur told The FE that he has been cultivating Kalijira and Uknimadhu variety of aromatic rice for the last several years and earning good profit which is encouraging to others.A number of farmers including Razob Ali, Mohsin, Akmal Hossain, Hashem of Fatejangpur and Awaliapukur unions of Chirirbandar upazila in Dinajpur district said the upazila is famous for the cultivation of aromatic rice.

BRRI-dhan 34 aromatic rice has been cultivated abundantly in 12 unions under the upazila.Due to good yield and higher market price in comparison with other varieties its farming on the rise across the upazila. Its farming is also playing a vital role in changing socio-economic condition of the peasants of the region.DAE sources said this year around 9,800 hectares of land have been brought under BRRI dhan-34 farming in Chirirbandar Upazila and many farmers are farming it on commercial basis as well, sources added.The sources said the prospect of aromatic rice farming is bright in the region. Its cultivation can be enhanced by utilising modern technologies.Such varieties of aromatic rice have the potential to attract global markets as well, after meeting local demand, sources added.








Tomatoes do double duty in coconut rice


Tomato coconut rice
Meera Sodha,The Associated Press
Curry leaves add a lovely citrus and smoke flavour to the rice but can be tricky to find unless you live near an Asian supermarket.
Hamilton Spectator
By Meera Sodha
Tomatoes work in a couple of ways in this recipe: they create a wonderful sauce alongside the coconut milk, which is used to flavour and cook the rice, then they float to the top to decorate the dish.
The end result is a dish delicious enough to stand on its feet without the need for anything else (which is especially good if you have vegetarians or vegans at the table) but will also complement grilled meat or salad.
As a side benefit, it's inexpensive to cook a mountain of it, using just a single pot.
Tomato and Coconut Rice
Curry leaves add a lovely citrus and smoke flavour to the rice but can be tricky to find unless you live near an Asian supermarket. If you can't find them, leave them out.
Makes 4 servings
2 cups of basmati rice
2 tablespoons canola oil
12 fresh curry leaves
1 cinnamon stick, approx. 2 inches
1 large onion, finely sliced
4 cloves garlic, minced
2 green serrano chilies, finely sliced
1 handful of cashews, unsalted
12 ounces fresh baby plum or cherry tomatoes, halved
1 14-ounce can coconut milk
1¼ teaspoons kosher salt
1 cup water
Start to finish: 45 minutes
Wash the rice in a few changes of cold water until the water runs clear, then leave to soak in cold water to one side.
Heat the oil in a deep frying pan. When oil is hot, add the curry leaves and cinnamon stick. Stir-fry for one minute, then add the onions. Cook the onions until they begin to turn golden brown and are soft enough to cut with a wooden spoon, then add the garlic, chilies and cashews.
Cook for another two minutes, then add the tomatoes. Cover and cook for around eight minutes until the tomatoes are soft around the edges.
Drain the rice and add it to the pan. Stir to mix. Then add all of the coconut milk, a cup of water and the salt to the pan. Stir again and bring the mixture to a boil for two minutes, cover and then turn the heat to low and cook for another 15 minutes without lifting the lid.
Turn off heat. Keep covered for an additional 10 minutes before serving.
Per serving: 652 calories (245 from fat); 27 grams fat (17 g saturated; 0 g trans fats); 0 milligrams cholesterol; 498 mg sodium; 90 g carbohydrate; 2 g fibre; 4 g sugar; 12 g protein.
The Associated Press

http://www.thespec.com/living-story/6990883-tomatoes-do-double-duty-in-coconut-rice/

Indonesia reduces foodstuff imports


Kamis, 1 Desember 2016 01:04 WIB

Jakarta (ANTARA News) - Indonesia is steadily reducing the import of foods such as corn and rice, President Joko Widodo (Jokowi) has said."For several years, we had imported rice. However, the agriculture minister informed me that we did not import rice in 2016," Jokowi said here on Wednesday, at the award function of Adhikarya Pangan Nusantara held at the State Palace.Indonesia cut the import of corn by nearly 60 percent of 3.2 million tons, the president revealed.The government has set a target of ending the import of corn by 2018.If Indonesia continued to import food, he would be grieved, the president remarked. To achieve national food security, the government undertakes several projects in agriculture and irrigation.It also helps the village administration set up irrigation projects to improve farm productivity.


The government will increase the allocation for the village budget to Rp120 trillion in 2018, which the local administration can utilize for maintaining existing irrigation projects and constructing new ones, the president stated.The government needs the support of the people, including academicians, farmers, and researchers, to achieve national food security, Jokowi said.Indonesia has fertile soil that can produce a variety of fruits and vegetables, so it can compete with other countries, he felt.

"Any country that has a productive agricultural sector must have good water supply. It can have a fertile soil by utilizing water supply in any weather. We should master those techniques," Jokowi stressed.The local administration should construct water reservoirs to reserve water and utilize the source for the agriculture field, he stated.Indonesia still has a lot of potential to supply international food security, Jokowi said."We should achieve the food security target by conducting more efforts immediately to support agriculture," he added.(*)



After Collapse Of Aveyime Rice: Volta Chiefs Grow Wild




30-Nov-2016  






The collapse of Prairie Volta Limited (PVL) formerly Aveyime Rice Project situated at Mafi-Aloryi in the Volta Region under the watch of Mahama-led National Democratic Congress (NDC) administration has fuelled fire again in the host communities.Some aggrieved chiefs and youth in the beneficiary districts, including North, Central and South Tongu, have called on President John Dramani Mahama to expedite action to revive the once vibrant rice producing company before Tuesday, December 2, 2016.

Failure on the part of government of the NDC to honour this obligation, they stressed, would lead to a massive demonstration.“If we do not see any concrete sign that work has resumed on the PVL before Tuesday, the demonstration will go on,” some traditional leaders and youth in Aveyime, Battor, Mepe, Adidome, Dokpo, Mafi-Aloryi, Sogakope, Bakpa, Mafi Kumase and Mafi-Dove areas including sacked workers of PVL told Today.

When Today visited the project site at Mafi-Aloryi recently to ascertain the facts on the collapsed project, the traditional leaders and the youth lamented that the collapse of the company under NDC government had adversely affected their fortunes and lives of the people in the three districts of the region.Fuming with rage, the leaders blamed government for the collapse of the company, stressing that the primary cause of the state of affairs at the company was the years of neglect by the largest stakeholder in the project which is government of Ghana.

They further stressed that the communities needed the government to intervene by reinvesting in the PVL to revive the company before the country goes to the polls to elect its leader on December 7, 2016.“We need government’s quick intervention to revive the company. Once it is on our land, we all expect it to grow and generate employment for the teeming youth, particularly the employees from the Takoradi Polytechnic who are ready to use their technical know-how to bring more innovation into the company,” they stated.

In their estimation, government did not have to be the sole owner before it will assist the ailing company.They noted that if the PVL could generate a quarter of the country’s rice imports, the savings on the import bill would be beneficial to the country.What is even painful, according to them, was the government’s inability to pay the ten months salary arrears to the over 500 workers who were sent home after the collapse of the company.

On their part some leaders in Aveyime, Mepe, Battor, Bakpa, Adidome, Sogakope and Dadome who spoke to Today appealed to government to help revive the PVL in order to bring life to the three districts.“As a result of the collapse of the company our children can no longer go to school, because we can’t pay their fees, thereby leaving the children to engage in anti-social activities,” they asserted.They pleaded with government to come to the aid of the company, saying it gave a lot of indirect employment to women who sold to the workers while the company was thriving.

Some of the affected workers lamented their inability to repay loans they secured from Battor and Mepe Rural Banks.“We are just loitering, as the factory is not functioning and we do not know what they will do”. “If it is revived we the workers will go back and find something to do and there will also be food in our houses,” the workers stated


http://www.peacefmonline.com/pages/politics/politics/201611/299708.php



Lifting of rice QR should also benefit farmers’

AS the lifting of the quantitative restriction (QR) on rice is expected to boost government revenues, the state-owned think tank urged the Duterte administration to set aside P18 billion a year to compensate farmers.‘In a policy note, titled Compensatory payment scheme for rice farmers after tarification, Philippine Institute for Development Studies (Pids) senior researcher Roehlano M. Briones and research analyst Lovely Ann C. Tolin said the removal of the rice QR is expected to boost government revenues due to more rice imports.
At a tariff rate of 35 percent, the government is expected to generate P27 billion to P28 billion in duties from rice imports, which could reach as much as 2.26 million metric tons (MMT) a year.“Earmarking the rice-tariff revenue to pay for the compensation scheme is a feasible funding strategy. Residual money from the tariff revenues could be used for other product-enhancement measures for rice farmers,” the authors said.
The influx of rice imports, the study stated, will lower paddy rice prices by P4.56 and P6.97 per kilogram at the farm gate and retail level, respectively.
The impact on farmers’ incomes of the removal of the QR, the researchers said, should compel the government to compensate them.Farmers cultivating 2 hectares of irrigated land should receive around P19,000 a year, according to the study.“This is greater than transfer per household from the Conditional Cash Transfer (CCT) Program, which is P15,000 for three children. Note that compensatory payments can be received simultaneously with the CCT,” the researchers said.
The researchers said the government can adopt a payment compensation scheme. Between 2017 to 2022, this can be done using the Registry System for Basic Sectors in Agriculture.Farmers or their heirs can receive compensation which is computed using the National Food Authority’s (NFA) support price of P17 per kg and the cost of production in 2012.The compensatory payment, the study stated, can be divided by the area harvested. This will be distributed per cropping season or twice a year.
“Tarification of the Philippine rice sector by 2017 is inevitable. Since our analysis suggests massive fall in domestic prices, it is imperative to provide farmers a measure for income support,” the study read.In October the National Economic and Development Authority (Neda) said the Philippines could impose a tariff of as much as 50 percent once the rice-import quota is removed in July 2017.A Neda official told the BusinessMirror that the opening tariff that it will impose will be between 40 percent and 50 percent for all imported rice that will enter the country.
A tariff rate of 50 percent is within the bound rate set by the World Trade Organization (WTO). This is, however, higher than the 35-percent inbound tariff imposed on rice shipments from Southeast Asian countries under the Asean Free Trade Agreement.Economists said, however, that the Philippines may be allowed to impose a much higher tariff if it could justify the need to do so, as in the case of Japan.When Japan converted its QR on rice to a tariff, Tokyo set an opening tariff of 400 percent.
http://www.businessmirror.com.ph/lifting-of-rice-qr-should-also-benefit-farmers/

Despite ‘miracle rice,’ farmers still poor
Lower gov’t spending on rice production, corruption and exploitation by traders make life miserable for farmers
Philippine Daily Inquirer / 12:40 AM December 01, 2016

A farmer uses a mechanical transplanter on a demonstration plot at the International Rice Research Institute in Laguna province. —CHRIS QUINTANA/CONTRIBUTOR
LOS BAÑOS, LAGUNA—In the 1960s, rice breeder Peter Jennings developed a rice variety that jumpstarted the “green revolution” in Asia.A cross between a tall, vigorous variety from Indonesia, called Peta, and a dwarf variety from Taiwan, called Dee-geo-woo-gen, the resulting crop was called the “miracle rice.”The IR8 is the world’s first high-yielding rice variety released from the International Rice Research Institute (Irri) in Los Baños town in Laguna province.The semi-dwarf rice variety was developed specifically to rescue Asia from famine during the 1960s and 1970s.
Fifty years after the development of IR8, Agriculture Secretary Emmanuel Piñol is still bothered by the question: Why are farmers poor?
Piñol, who described himself as a farmer, said he set out on a nationwide tour and consultation, called “Biyaheng Bukid,” to assess the state of Philippine agriculture and learn about the living conditions of farmers.Piñol, during a program on Tuesday at Irri to mark the 50th year of IR8, blamed the reliance on imports and lower spending on local rice production, corruption and exploitation by traders and middlemen.He said the impact of climate change would hurt the Philippines if the country relies heavily on rice importation.If rice-producing countries in Asia are hit by the adverse effects of climate change at the same time, “we will have nowhere to import rice from.”Agriculture professor Jose Hernandez of the University of the Philippines Los Baños said rice importation could make rice farmers poorer.
Hernandez said the local market will be flooded with cheap rice due to the Association of Southeast Asian Nations integration and the Department of Finance’s proposal to remove the quantitative restrictions on rice.This, Hernandez said, will force local farmers to lower their prices.“The consumers will benefit [from lowered prices], but farmers will not profit,” he said.Piñol also said corruption, citing officials who think of making money out of government transactions, as another roadblock in improving agriculture.“When people in government start thinking that way, then everything is messed up because programs will be implemented not because these lift people from poverty but because these will make money for the [project] proponent,” he said.Farmers have also been exploited by traders and middlemen, he said.This problem can only be solved by implementing institutional reforms to address the lack of drying and postharvest facilities, he added.“This is a major problem that prevents [farmers] from taking a stronger stand against manipulation of traders and middlemen,” Piñol said.
Other problems hindering the rice industry’s growth were “hazy” statistics in the rice industry, irrigation, lack of storage facilities and farmers who refused to embrace modern ways in agriculture.
Erlinda Generalla, 66, a farmer from Bay town, acknowledged Piñol’s observations but said people do not understand their situation.Generalla said even if they wanted to try out new farming technology or techniques, they cannot risk losing money.“If we do, we would be forced to pawn our farms,” she said.Piñol said a Department of Agriculture program in Samar province is ongoing to educate farmers on the new ways of farming