Position  Paper on Rice Crisis
Engineering Student Council 2008-2009

The recent weeks have shown a dramatic increase in the price of our country’s staple food: rice. Though this sudden increase has brought about numerous assumptions as to how and why our country’s staple commodity has increased dramatically, one has to first note that such a crisis is a world phenomenon. Constant inflation of market prices has brought about sudden increase to local produce, including rice. The problem, therefore, is not that of a rice crisis. The issue at hand here is the price crisis and the eventual panic attack of local consumers to avail rice at a lower price. However, one of the major arguments that need to be pointed out is that this issue should not be taken lightly. It is important to recognize that rice is a universal commodity: it transcends political, social and economic classes. Thus, no one is exempted from this crisis. Most, if not all, are affected by the current crisis that the entire Filipino population faces. But when looking at it from the larger perspective, the current crisis is mainly the “tip of the iceberg.” The Engineering Student Council recognizes the government’s effort in stating that a price hike in rice was imminent to happen and that the Filipinos were able to anticipate it. Also, it is very much appreciated that the government has given out rice passes to give priority to the less-fortunate. However, as Engineers who strive for the most efficient manner to solve problems, such efforts are not enough. This rice crisis implies a lot more than just meager stocks in the country’s produce for self-sustainability. It is an implication of the political, social and economic problems that can arise or are currently happening in our nation. One must then look and scrutinize the current state of society to be able to realize the depth that this problem implies.

 

The current crisis is an implication of the government’s inefficiency to regulate and implement agrarian laws.

 

In every province, the Department of Agriculture has its implementing rules. One of which would be to support the region’s produce to which it is assigned to. [i.e. if you are a palay producer, The Department of Agriculture should support palay production]. Unfortunately, there is meager support from the Department of Agriculture. Occidental Mindoro is one of the major producers of palay in the Philippines. Recent reports have shown though that the Department of Agriculture highly encourages corn instead of rice production, being that corn can be sold at a higher price. One has to consider the improper implementation of law that then provides fewer avenues for the use of the land to which it is really for.

 

The current crisis is an implication of the government’s lack of support in the agricultural sector.

 

The International Rice Research Institute (IRRI) has noted a continued decline in investment of the government in our agriculture. The agriculture sector has not received adequate resources for the funding of critical programs or projects, such as the construction of efficient irrigation systems. According to the World Bank, the share of irrigated crop land in the Philippines averaged only about 19.5 percent in the mid-1990s, compared with 37.5 percent for China, 24.8 percent for Thailand, and 30.8 percent for Vietnam. Though there have been initial allocated budgets for all of its aspects, budget cuts have been constantly implemented and one can easily see the disinvestment in agriculture through its outdated technologies and means of palay production.

 

It is also important to note that the failure of the Comprehensive Agrarian Reform Program (CARP) is from the government’s lack of support as well. The logic behind CARP was to be able to provide equal distribution of lands to its constituents and beneficiaries [i.e. farmers]. Although initially noble in nature, the equal distribution of lands did not match the equal distribution of finances and support from the government in order to finance and maintain such land. How can a family of 4 people maintain a hectare of land if they do not have the proper technology and resources to maintain and cultivate such a parcel?

 

The current rice crisis is an implication of the quality of GDP growth in our country.

 

The growth rate of Gross Domestic Product (GDP) of the Philippines in the 4^th quarter of 2007 has risen to 7.4% as compared to 5.5% last year. Although the quantity of GDP has risen dramatically and the potential output of our resources has grown, one still has to note the percentage contributions of such. The service sector has the largest contribution to GDP growth at 3.63%, followed by the industry sector with a contribution of 2.30%, and lastly, agriculture and forestry with only 1.47% contribution. Yet another major irony of it all is that as of the most recent statistical tables released by the National Statistics Office, Laborers in the agricultural sector account for 37% of our country’s labor force, just second to the service sector with 48%. These figures just prove the major notion that the agricultural sector has a major discrepancy with its potential output proportional to the number of laborers it has. One must then address the government over such inefficiency.

 

The current rice crisis is an implication of the country’s continued lack of resources and larger debt in the World Bank.

 

According to statistics, the Philippines’ yield per hectare of land has dropped down to an average of approximately 3 metric tons per hectare. There is a large discrepancy to the ideal yield set by the National Food Authority (NFA) of 5 metric tons per hectare. 5 metric tons per hectare is the anticipated yield of agriculture in order for the Philippines to sustain itself for at least two months. Such reserve is called the buffer stock, the 2-month worth stock assuming good yield. This then turns our attention to the lack of arable lands that can be used for agriculture due to commercialization and industrialization of such assets [i.e. Golf courses, residential subdivisions, and industrial parks]. In 1993 the nation was losing irrigated rice lands at a rate of 2,300 hectares per year due to commercialization. This gives the National Food Authority no choice but to continuously import rice to sustain the buffer stock and provide rice at a cheaper price. And since the NFA sells such imported rice at a lower price than its current market value, in only increases the 120 Billion dollars debt we have in the World Bank.

 

We, the Engineering Student Council 2008-2009, believe that such matters should not be taken lightly. We firmly propose that such measures should be made in order to alleviate, if not eliminate, the current rice crisis. We then recommend the following alternatives:

 

Revamp of the current agrarian reform and agricultural laws

 

There should be a thorough perusal of the by-laws of the agrarian reform bills as well the agricultural laws that govern the Philippines. Such rules though are not implemented as rigorously and not as devotedly followed as it is supposed to be. That being said, we propose a formation of a more solid foundation for the passing of new agrarian reform and agricultural laws. That way, proper sanctions can be prescribed for non-implementation of the law, as well as disobedience to the said laws.

 

More budget allocation to the agricultural sector

 

It is true that a country’s economic advancement is primarily measured through its technology and capital resources. Although such statement is a sweeping generalization, we should never forget that The Philippines is still primarily an agricultural country despite the plan to make it an industrialized economy by 2000. Most citizens still live in rural areas and support themselves through agriculture. Thus, government should prioritize agriculture in its budget allocation. The government should invest on technologies that would aid in the production of agriculture so as to be able to make potential output of agriculture proportional to its labor force contribution.

 

Encourage population awareness

 

Rice yield of 3 metric tons per hectare is not proportional to approximately 89 million Filipinos living here today. Moreover, population is expected to increase to approximately 94 million by the year 2010. A nation’s safety and well-being does not rely on its sovereign alone, but with its subjects as well. We should then encourage population awareness. With the price hike of even our country’s staple food, the people should also realize that overpopulation may serve as a threat should the increase in average output not be proportional to the increase in population in the long run.

 

Invest on general education, graduate studies and Research and Development efforts

 

The College of Engineering has proved its excellence through its long line of duly-recognized research works not only by its graduates but also by its faculty members. Government investment in education is thus imperative. One important aspect to note that educational attainment has one of the highest indicators of poverty incidence here in the Philippines. In 2003, 69% of those who are in a state of poverty are those who have finished at most elementary education and 76% are in rural areas. Thus, investment on provincial education is essential so as to be able to instill awareness to the people as well.

 

Encouragement to pursue graduate studies [i.e. Master’s and Doctorate degrees] is yet another alternative with a long-term effect in our country’s current state. Having these people with further studies at a more specific vantage point would be an assurance of tireless efforts in pursing research and development efforts in order to improve and cultivate our current agricultural technology and production. One should also realize that maximizing the fact that the International Rice Research Institute (IRRI) is in the Philippines, having collaborations with the best Engineers in R & D efforts would bring about further strengthening in our agricultural sector, one that was once the best in South East Asia. This way, long-term effects can be made possible for a more stable economy and quality growth in potential output.

 

Focus on anti graft and corruption measures

 

 It is important to note that 2 out of the 10 of the most corrupt leaders in the World hail from the Philippines—the only country with such a distinction [i.e. Ferdinand Marcos (2) and Joseph Estrada (10)] Corruption thwarts the growth of strong institutions over time. We should strive to stop corruption in our country, simply because corruption control is an essential role in effective governance. Current government can reduce corruption through coordination with the Ombudsman and the Commission on Appointments. A big fish has been caught already. Let this not be the end of the road for our battle against corruption.

 

As a college that prides itself in its long line of excellence in providing the most efficient solutions to the problems at hand, we ought to take the measures by which we can slowly address the problem. This issue has not just become a fleeting issue. It has become a wake-up call for all of us to be aware and ponder on the things that we want to happen for our country. Recognition of our roles as students would be one, but in recognizing ourselves as iskolars para sa bayan, we ought to make the move to instigate awareness not only within ourselves but to other people as well. Eventually, the nation’s future will be literally in our hands. Being in UP is a gift simply because it gives us the privilege, opportunity and responsibility to give back by becoming more: more aware, more passionate, and ultimately, more nationalistic.

 

Excellence through quality education is the key to survival, but striving for excellence through UP Education is the key to nation-building and in turn, national change.

 

Sources: World Bank, International Rice Research Institute, National Statistics Office, Department of Agrarian Reform, Department of Agriculture, Nation’s Encyclopedia, Philippine Center for Investigative Journalism

 

(Prepared by the Engineering Student Council’s (ESC) Externals Committee with inputs and reports from other members of the ESC)

 

/rma0809