The country’s rice supply crunch will worsen unless the government takes significant steps to address the problem, US-based Standard Chartered Bank said.
StanChart chief executive officer Eugene Ellis believes the rice situation could lead to other problems.
“We think the rice problem will exacerbate and could lead to social problems. Hunger is something that carries social and economic problems,” Ellis told reporters in a recent briefing.
He said the government should be particular in solving the issue by taking major steps such as addressing the rice hoarders.
“Hoarding artificially drives up prices,” Ellis said.
Government officials conceded that the rice crisis is a serious problem which the government needs to address.
The Department of Finance (DOF) is increasing the tax expenditure subsidy extended to the National Food Authority (NFA) as part of measures to avert the rice shortage in the country.
The subsidy will help the grains agency to have more funds for its import requirements.
Earlier, the NFA said it would file an application with the government for the tax expenditure subsidy to help the agency fulfill its mandate of ensuring the country’s rice sufficiency through importation.
The government is looking at various ways to avert a rice crisis in the country triggered by skyrocketing prices in the world market.
The price of rice has risen by almost 100 percent to $400 per metric ton over the last five years.
The government also said that it is spending at least P3.35 billion for emergency measures to mitigate the effects of the shortage of rice and other food commodities in the world market.
Government officials have already warned of a looming rice crisis in the country, with the Department of Agriculture (DA) saying that the public should avoid wasting food.