Vicente Domingo, national chairman of the Kapisanan ng Magsasaka, Mangingisda at Manggagawa ng Pilipinas (KAMMPInc.), recommended a three-phase “speed move” to avert the rice crisis -- to form a new politics, get rid of political dynasties, form a new congress and a new republic.
http://newsinfo.inquirer.net/topstories/topstories/view/20080415-130565/Problem-is-price-not-supply-says-ex-NFA-execAnd here is a stupid statement regarding the pullout of NFA rice from public markets:
“If they are saying that there is enough supply of rice so why hide it? Besides 90% of Filipinos are already poor so it will be best if the NFA rice remains in the market, if not then [President] Gloria [Macapagal-Arroyo] is playing with fire. If their plan pushes through then she will again face the wrath of the people and she may finally be ousted,” said Kilusang Magbubukid ng Pilipinas (KMP) chairman Rafael “Ka Paeng” Mariano.
I wonder where they get their statistics and logic...
Why are newspapers quoting them?
labo..walang konek
ReplyDeletePerhaps it's not really that they're stupid or what. There was surely unpassable flaw in logic in there but I'm sure it was just magnified by his/their inability to express himself/themselves very well - something you expect from the less eloquent speakers. I'm sure the newspapers are quoting them just so these people (or this person) get to air his opinion considering they're directly involved in this.
ReplyDeleteBut what do you think of the crisis? Is there one or are they just bloating the issue?
Echoing the experts, the problem is the price of rice, not supply. The problem is that the price of rice in the international market has gone up rapidly since January 2008.
ReplyDeleteIs there a crisis? Yes, and it started when we failed to abolish (or at least privatize) the National Food Authority (NFA) more than a decade ago.
The problem of the government is focus… do we want price stability? If yes, then we must import as much rice as possible to stabilize prices, eliminate the tariff and the quantitative restrictions on rice.
What about the poor farmers? Rice farmers are actually net buyers of rice. The NFA’s strategy of setting farmgate prices is simply ineffective and market distorting.
To help farmers, the government should lower transaction costs for rice trading. Rice cartels persist when transaction costs are high, when there is information asymmetry, and when there are entry barriers for other traders.
But the uptrend in rice pricing (I hate this rhyme! Giving me unwanted tongue twisters!) in the international market is an indication of imbalance in the supply and demand - apparently to inadequate supply - unless they trace it to rice cartels AGAIN (not a matter though if it's true.).
ReplyDeleteIt's actually double whammy : we have a thinning global supply and increasing demand coming from Asia (primarily China). In the local context, we have enough supply to meet our consumption requirements. But the government is causing unnecessary speculations to justify rice importation, where they get huge profits.
ReplyDeleteBut we really need to import rice - isn't it? - as local production can't meet demand (correct me if I'm wrong). And since it's true that we do have been importing rice, and need to import more, then we are not immune from the global supply shortage, as you admitted. Hence, it's not yet here (the rice crisis) fully but it's definitely coming (?). At least that's how I'm understanding it now.
ReplyDelete