EDITORIAL - Food security

The National Food Authority subsidizes farmers and poor rice consumers so it should not come as a surprise if it looks like a money-losing agency. In studying what should be done with the NFA amid allegations of irregularities in the previous administration, the government should consider whether those subsidies should continue, or if farmers and the poor who benefit from relatively cheaper NFA rice should get food subsidies in other ways.

What needs investigation is whether rice importations made in recent years by the NFA were aboveboard. It is easy to check whether the government obtained the best or at least reasonable prices for the imports. Prices for different varieties of rice in the international market are posted online and can be checked. In the past years, there were persistent rumors that certain quarters received a cut in the declared purchase price for every metric ton of rice imported particularly from a certain country. At the height of the last rice crisis about two years ago, industry experts overseas observed that the Philippines was pushing up rice prices with its bids in the world market. Former NFA officials maintain that they have done nothing wrong and have dared critics to substantiate allegations of wrongdoing.

Agricultural funds are also at the heart of a scandal involving former agriculture undersecretary Joc-joc Bolante, who faces charges of diverting the money for the presidential campaign of Gloria Macapagal-Arroyo in 2004. The judiciary should speed up the resolution of this case.

While pondering what to do with the NFA and agriculture subsidies, the Aquino administration should also consider measures to improve the stability of the country’s rice supply. Many Filipinos have wondered why the country has to import rice from its neighbors such as Vietnam and Thailand. Some industry experts have pointed out that the Philippines lacks the abundant natural irrigation in those two countries. But the Philippine government should also promote research and development that will make the country less dependent on rice imports.

Many goods are best produced in certain parts of the world, and importation can be cost-effective in such cases. This shouldn’t stop the Philippines from studying ways of becoming more self-reliant when it comes to its staple. As in any probe into agricultural subsidies and rice importations, a key concern must be the country’s food security.