every $1 the local rice industry contributes to the economy, $3 is generated through allied businesses such as equipment dealers, fertilizer distributors, cropdusters and laborers. By Andrew Creasey acreasey@appealdemocrat.com
NFA chief junks recommendation of Neda to import rice ‗immediately‘ Written by Benjamin B. Pulta :Monday, 07 October 2013 08:00
The National Food Authority, through Administrator Orlan Calayag, announced that the NFA would no longer be importing rice this year despite a Memorandum for the President dated Sept. 10, 2013 from the National Economic Development Authority (Neda) that recommended the ―immediate‖ importation of half a million metric tons (MT) of rice ―to address the supply gap and stabilize prices,‖ ignoring a blueprint from the National Economic Development Authority that would address high rice prices and ―possibly lower them.‖The memorandum by Neda Director General Arsenio Balisacan and copy furnished Department of Agriculture (DA) Secretary and NFA Chairman Proceso Alcala warned that ―even if rice production recovers in the last quarter of 2013, deficits are expected to be incurred from as low as 0.5 million MT to as high as 1.4 million MT. ‖Despite recommendations of Neda, Calayag, in a statement released Tuesday, said the government ―has no plans to import an additional volume of rice for this year.‖Attempts were made to obtain Balisacan‘s comments on the refusal of the NFA to heed Neda‘s recommendations but he could not be reached.Balisacan, a former DA undersecretary, had argued in previously published papers for the importation of rice to stabilize prices but stressed the importance of ―relieving the NFA of the burden of handling rice imports‖ because of the possibility of corruption tainting these transactions.Calayag‘ statement also contradicted Neda forecasts regarding rice production shortfalls. The country‘s independent economic development and planning agency estimates local rice production to hit 18.45 million MT — a figure less than the 20 million MT the DA maintains is necessary to meet the needs of the country‘s 97 million people.Neda‘s estimates are consistent with those of the DA‘s Bureau of Agricultural Statistics (BAS) whose head, Assistant Secretary Romeo Recide, testified in Congress that local rice production would hit 18.45 million MT. Recide likewise testified the country would need an additional half million tons of rice to meet local demand for 2013.Despite the disparity in numbers, Calayag in his statement said ―current rice inventories and the incoming bulk of the main harvest are already enough for the country‘s requirements. ‖Alcala has likewise repeatedly claimed in the media that the country would be able to produce 20 million MT of rice this year and that the country will be rice self-sufficient by the end of 2013.Despite assurances from the
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