Thailand pledges rice supplies, elsewhere protests loom
BloombergToday Online 5 Apr 08;
Thailand, the world's biggest rice exporter, pledged supplies to importers, while India vowed to crack down on hoarding as shortages drove prices to a record and threatened to trigger protests in Asia and Africa.
The nation "has enough rice for export to neighbouring countries" and may be able to deliver as much as 1.2 million tonnes a month, said Mr Prasert Gosalvitra, head of the rice division of the Farm Ministry. Thailand has shipped about 1.1 million tonnes a month since Oct, he said.
Rice, the staple food for about 3 billion people, has doubled in price in the past year in international commodity trading because of increased imports by the Philippines, the biggest buyer, and a drop in exports by China, India and Vietnam.
Record food prices have stoked inflation, contributing to riots in Ivory Coast and a crackdown on illicit exports in Pakistan.
"We expect a significant rise in prices, well above the long-term average, in the short to medium term," said Mr Les Gordon, president of the Rice Growers Association of Australia. Population growth, urban encroachment on land, and rising grain prices are contributing to the increase.
Commodity prices are posting their seventh year of gains. The UBS Bloomberg Constant Maturity Commodity Index of 26 raw materials more than tripled in the past six years as global demand led by China outpaced supplies of metals and crops.
Indian Trade Minister Kamal Nath said his government will punish those who hoard essential commodities. "We will not hesitate to use some of the legal provisions we have against hoarding," said Mr Nath, while visiting Singapore.
Mr Prasert from the Thai farm ministry said: "We're ready to help solve the global food crisis but we have to be sure our people are taken care of," he said from Bangkok. "It's not possible to ship 3 million tonnes a month. The maximum we can do is 1.2 million tonnes."
The Philippine government has pledged more money to increase rice supplies. State banks may lend as much as 20 billion pesos ($660 million) to the National Food Authority to buy rice, and to farmers to boost output, said Finance Secretary Gary Teves in Manila.
The Philippines has asked Japan to allow it to draw from grains pledged under the regional emergency reserve programme. "We'll take whatever they can give us," said Mr Jessup Navarro, administrator of the National Food Authority.
Manila in drive to boost farm output
President Arroyo announces multimillion-dollar investment projects for agriculture sector
Alastair McIndoe, Straits Times 5 Apr 08;
MANILA - PRESIDENT Gloria Arroyo has rolled out a major investment drive to boost agriculture production, as the latest inflation data shows a stark rise in food prices, especially for rice.
With her administration grappling with soaring rice prices and tight global supply, she has vowed to make the staple commodity 'abundant, accessible and affordable'.
'We must work harder to grow what we need,' she said at a summit yesterday to revive an underfunded and inefficient sector.
She said the multimillion-dollar agriculture projects would include building more market- to-farm roads and irrigation systems, stepping up the use of high-yield seeds, and an additional 15 billion pesos (S$499 million) worth of cheap credit provided by state banks for farmers.
Some of the funding for these projects will be sourced from soft loans from foreign governments in development aid to the Philippines.
'In all these programmes, we must be transparent,' President Arroyo said.
The new measures follow a scramble to increase rice imports for buffer stocks ahead of the lean July-to-September supply months as prices rise and traditional suppliers, such as Vietnam, reduce their exports.
Government data released yesterday show rice prices shot up 10.9 per cent last month from the same period last year. In February, they rose 7.7 per, with the retail price of some rice varieties increasing by around 30 per cent over the past months.
The sharp increase in the price of rice - and food generally - on the consumer price index boosted March's annual inflation rate to a 21-month high of 6.4 per cent.
Earlier this week, troops were called in to distribute the National Food Authority's heavily subsidised rice in the Philippine capital.
But even as Filipinos grumble about the higher prices and activist groups lead some protests, there have been no reports of rice shortages in the public markets - or signs of social unrest over the situation.
The Justice Department, meanwhile, has threatened to charge traders who speculatively hoard rice with economic sabotage, which can carry a life jail sentence.
Analysts say the scramble for rice imports and now to boost farm production reflect an urgent need to modernise the farm economy.
'Food security has meant that for as long as there is food on the table, it doesn't matter whether it is home-grown or imported,' said political analyst Ramon Casiple.
'But the view of civil society groups has increasingly been that food security means self- sufficiency, especially for staple commodities.'
The Philippines buys about 10 cent of its annual rice requirement, making it one of the world's largest importers. It is pencilling in imports of up to 2.2 million tonnes this year.
Experts say achieving self-sufficiency is by no means an impossible goal, but would require sizable investments in the agriculture economy.
In Thailand, the world's leading rice exporter, Prime Minister Samak Sundaravej yesterday insisted the country had enough for domestic consumption as he tried to ease panic buying caused by soaring prices.
