Neda report on rice seems to be ignored, says senator

Senator Loren Legarda said on Wednesday that she found “extremely disturbing” the Department of Agriculture’s (DA) failure to act on high rice prices in light of forecasts from the National Economic and Development Authority (Neda) that showed the country’s rice production falling short of target.

“This document clearly explains why rice prices have failed to stabilize even after the passing of the lean season. In past years, rice prices would spike in July and August, and by September these would go back to pre-lean season rates,” Legarda said in a statement.

“It is already October, and what has been very disturbing is that rice prices have continued to go up. Rather than normalize, rice prices are at their highest, and the Neda memo only confirms what the law of supply and demand simply dictates: that with limited supplies, prices will naturally go up,” said Legarda.

The forecasts, detailed in a memorandum for the President signed by Neda Director General Arsenio Balisacan and copy furnished Agriculture Secretary Proceso Alcala, state that the third quarter rice production of 7.4 million MT is inadequate to cover total demand amounting to 9.1 million MT, a deficit of 1.7 million MT without buffer stocks.

This number, according to the document, can even balloon to 2.6 million MT if a 30-day buffer stock is factored in.

The Neda memorandum, according to Legarda, recommends that the country import an additional 500,000 MT of rice to “stabilize prices and possibly lower them,” but recent pronouncements by the National Food Authority (NFA) that no more rice would be imported this year, Legarda said, “begs many questions.”

“If the DA and NFA have no plans to act on the recommendations of Neda, then what do they plan to do?” she said.