"The member-countries want to establish an emergency rice reserve that will be dispatched at any time, particularly during emergency situations such as the devastating tsunami that recently hit parts of Asia," said National Food Authority Administrator Gregorio Tan Jr. the Philippines’ chief representative in yesterday’s EARR steering committee meeting in Manila.
Tan added that the rice stocks, the volume of which was initially pegged at 100,000 metric tons (MT), 150,000 MT and 200,000 MT during the three-year pilot project from 2004-2006, if unused for emergencies, could also be used for poverty alleviation programs of its member-countries.
Asean currently holds 87,000 tons of rice in an earmark reserve set up in 1979 when Asean had only five members. The reserve was used only once in 1980 by the Philippines.
Tan said the Philippines already has a standing commitment of 12,000 MT under the Asean emergency rice reserve and also offered to put in an additional stockpile of 25,000 MT for the EARR of Asean + 3, while Japan said it is willing to commit as much as 250,000 MT.
Pinit Korsieporn, deputy secretary general of the steering committee of EAERR, said that eventually the rice reserve’s function will have to evolve and include using it as an effective tool to stabilize rice prices in the region.
"In the long run, this arrangement should have a significant effect in keeping rice prices at stable levels, although the primary intent is to ensure food security among member countries and distribute it to countries where supply becomes critical," said Korsieporn.
Tan said the steering committee will be also reviewing the present Asean emergency rice reserve structure to boost efficiency and distribution of the supply when it is needed.
"Currently, the availment is minimal, in fact, it was only the Philippines that availed of it so far, and it was from our own stockpile. That’s why we are reviewing the system and determine problem areas that could be a factor in the low availment," said Tan.
The member-countries’ leaders will look into the recommendations by the steering committee since rice is a politically sensitive issue in some countries.
Asean already had five meetings to discuss the EAERR to explore options on how to come up with a viable rice reserve system for the region.
Previously, the countries agreed that there should be both earmark and physical reserves to ensure food security.
The earmark reserve, operated under forwarding contracts by pledging countries, would serve as a regional rice pool to cope with price fluctuations resulting from unusual market conditions, such as when natural calamities like flooding or drought result in an upsurge in rice prices.
Asean comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, The Philippines, Singapore, Thailand and Vietnam.