Roxas to PGMA: Focus on productivity vs. dole-outs in SONA

Senator Mar Roxas urged the President to focus more on how to achieve greater productivity for the poor especially in the countryside, rather than merely list dole-out programs, when she delivers her State of the Nation Address on Monday, where she is expected to launch the National Social Welfare Program.

This, as he recently filed two bills that will provide the government with short-term and long-term plans and tools to achieve immediate rice sufficiency and long-term food security and to jumpstart an agriculture renaissance in the country.

"More than a litany of dole-outs, the President should focus on increasing the productivity and incomes of the poor, especially our farmers and others in the agriculture sector who are now harvesting less and earning less due to the high cost of farm inputs like fertilizer," he said.

"We recognize that dole-outs are needed to alleviate the pain of those who are already at the end of the road. But this should not be the be-all and end-all of how we will approach the ongoing food and oil price crisis," he added.

The Liberal Party President had earlier said that the most important concern now is how to address the increasing incidence of hunger due to the high price and insufficient supply of rice. He stressed that of the total budget of the poorest 30% of the population, 60% is allocated for food (40% of which on rice), thereby making them the most vulnerable to price and supply shocks.

"More Filipinos now are saying that they have felt hunger. This is bound to get worse if not addressed. We in Congress must urgently enact tools to fight hunger, but we can only do so if this is considered as the top priority by the administration," the Chairman of the Senate Committee on Trade and Commerce added.

Senate Bill No. 2469, or the proposed Immediate Rice Security Act, seeks to achieve immediate rice security through a Fertilizer Support Program (FSP) for all farmers and the restructuring of the National Food Authority (NFA). The proposed FSP is a "buy-two-take-three" mechanism, where each purchase of two bags of in-kind urea (46% nitrogen) allows a farmer to avail of three additional bags from a Fertilizer and Pesticide Authority-designated distribution center.

The bill also provides for a phase-out of the NFA's rice importation program to make way for private sector participation, and to change the NFA's role as importer into a buffer stock management agency. In the interim, the NFA must provide a shorter registration process and reduced fees to encourage farmers' organizations and other groups in the private sector to participate in importation.

SB No. 2468, the proposed Agricultural Renaissance and Food Sufficiency Act, on the other hand, is aimed at ensuring long-term self-sufficiency. The bill is anchored on an accelerated ten-year Agricultural Investment Program for increased research and development (R&D), better irrigation systems and other reforms.

Under the bill, the government is mandated to maximize R&D support to farmers—or R&D extension services—by making this more location-specific and resource-sensitive, while promoting new technologies for commercial purposes. Such R&D shall involve farmers and their organizations, along with other players in the production and post-production process.

The Department of Agriculture and the National Irrigation Administration will also be tasked to conduct an evaluation of the country's irrigation systems, to determine which ones need rehabilitation. The bill also mandates that for new irrigation systems that will be build, priority must be given to small-scale irrigation systems. Roxas said that according to studies, small water impounding systems are more affordable and more efficient than large-scale systems.

The bill also affirms and strengthens the Department of Agriculture's mandate to provide technical assistance to farmers and the rest of the private sector in the use of post-harvest facilities and availing of extension services, among other things.

It provides for the NFA's change in mandate, so that it is primarily tasked to maintain and manage rice reserve requirements within ten years of implementation of the Agricultural Investment Plan, from its present role as importer.

To implement all of these, the bill proposes an additional appropriation of P1.1-billion per year for 10 years, on top of the DA's regular annual appropriation.

Saturday, July 26, 2008 | posted in da, food crisis, mar roxas, nfa, pgma, philippines, president, rice crisis, sona | 0 comments [ More ]

Roxas: “Finally, Government’s feet on the ground”

Senator Mar Roxas said it is high time to suspend the value-added tax (VAT) on oil products, now that the government has already “accepted the reality” that it would not meet its “theoretical” target to balance the budget.

“Finally, nakaapak na sila sa lupa (their feet are now on the ground)! Because their theory that the budget can be balanced this year, nawala na iyan matagal na eh (has been abandoned for some time already),” an exasperated Roxas said during the Kapihan sa Senado held on Thursday.

“When oil was at $90 per barrel at the beginning of the year, nawala na iyan eh (the assumption’s invalid already). The economic growth for 2008 would necessarily be affected,” he explained. He said oil prices now are four times more expensive than when the expanded VAT was still being deliberated.

He also pointed out that the President has supposedly allotted P40 billion for the Agriculture “FIELDS” program, aside from continuing with rice subsidies through NFA, the budgets for which are not in the original budget.

The Chairman of the Senate Committee on Trade and Commerce pointed out that when the proposal to impose a 12% VAT on oil was still being deliberated, Dubai crude was still around $34 per barrel. Now, the price of Dubai crude has reached $120 per barrel. This means if the government earlier expected to collect around $4 of VAT per barrel of crude, it now collects around $14 per barrel, or excess revenue of around $10 per barrel.

“Ang laki-laki na ng nakokolekta ng gobyerno, higit doon sa original na inaasahan nila mula rito. Bakit pa nila ipinagdadamot ito (Government’s collecting so much more than what it originally expected. So why are they refusing to return it to consumers)?” he said.

The Liberal Party President stressed that if the government really wants to help consumers and protect the “real economy” at this time of crisis, it must immediately support moves to suspend or remove VAT on oil.

“Maaari na ayaw nila ito sa simula. Noong nasa $90 per barrel ang langis, tinanggihan nila ito. Ngayon na nasa $130 per barrel na ang langis, mukhang nagkakaroon ito ng buhay sa Kamara. Kahit ano pa man ang gusto ng Malacañang, itong demokrasya dito, batay ito sa kagustuhan ng ating mga kababayan. Nilagay natin sila diyan, dapat hindi nila ipagdamot itong pera kasi hindi nila pera ito. Pera ng sambayanan ito,” he said.

Saturday, May 31, 2008 | posted in da, e-vat, food crisis, mar roxas, nfa, oil, pgma, philippines, president, rice crisis, united arab emirates | 2 comments [ More ]

Rice crisis a direct threat to Food-For-School recipients, Roxas says

Senator Mar Roxas expressed dismay that over 20,000 grade school students in Eastern Visayas will now stop receiving rice allocations under the food-for-school program of the Department of Education due to the worsening rice crisis.

"The food-for-school program has been successful in improving nutrition and reducing drop-out rates among school children. It is extremely worrisome that the rice crisis now poses a direct threat to the viability of this education program," Roxas said.

"While the government is harping on its rice access card program, what we don't know is that it's also cutting funding for other programs. It is giving rice cards to poor families in Metro Manila while taking away rice allocations that would keep poor children in school in the poorest provinces of the country. We're taking away food from one mouth to put in another. Rice access cards program are under DSWD and DA while the food-for-school program is under DepEd. Does the left hand know what the right hand is doing?" he said.

The Liberal Party President said things are bound to get worse before they get better, considering the failed auction of the National Food Authority (NFA) where only one bidder showed up.

Roxas said the failed bid forced the NFA to admit that there was a "tightness of supply" in the world market. He added that this should serve as a fair warning to government to consider long-term solutions to the rice problem.

"First, admit that there is a problem. Secondly, come up with a concrete plan that includes both short-term and long-term solutions to solve the problem. Ang problema, sa unang hakbang pa lang ay hindi na tayo nagpakatotoo," Roxas lamented.

Roxas urged the executive branch to cut public expenditures in other areas in order to sustain the government's food-for-school program.

"Officials serving in the boards of government-controlled and -operated corporations should make the supreme sacrifice of giving up some of their perks as a sacrifice for the country. We can also look into restoring a four-day work week in government so we could save on energy costs," he said.

"More importantly, the revenue collection agencies should increase their collections. Let's do what needs to be done to keep these poor children in school," he said.

The Senate Trade Committee Chairman is also for the expansion of the food-for-work program, where poor families are harnessed to help in their communities. He has misgivings about a rice rationing system, such as the rice access cards, because it could be susceptible to politicking.

Wednesday, May 7, 2008 | posted in da, deped, dswd, education, food crisis, mar roxas, nfa, pgma, philippines, president, rice crisis, visayas | 0 comments [ More ]

Roxas to gov't: Intercept rice diversion at the large scale, not 'tingi' level

Senator Mar Roxas said the government must focus its efforts to curb diversion of imported rice at the scale of large shipments, not in the markets, to ensure that the staple actually reaches the poorest of the poor who need it the most.

"Ang mga malalaking diversion ay nangyayari hindi sa palengke, ngunit sa pagpasok ng mga barko, pagdala ng bigas sa mga warehouse. The real diversion happens by the shipload and truckload, not just by the sack," Roxas said.

"Kailangang makita natin ang dinadaanan ng bigas mula sa pagpasok pa lang sa bansa. Itong mga raid-raid na ito ay pakitang tao lamang, o isang patingi-tinging solusyon," the Chairman of the Senate Committee on Trade and Commerce added.

Roxas said he had already written Agriculture Secretary Arthur Yap last April 10, asking for the following information:

1. The total volume of rice importation for 2008 including the list of importers and originating countries of these imports;

2. The pricing or cost of these imports per volume, for each source;

3. The schedule of each shipment, the type of cargo or vessels for these and their maximum tonnage, and the actual volume to be imported per shipment;

4. Drop-off points or ports for these shipments; and

5. A copy of the latest Rice Importation Contract with Vietnam.

"We are still awaiting Secretary Yap's response, which would shed light on how rice intended for the poorest of the poor is instead used for commercial purposes. With this knowledge, our authorities can better track down unscrupulous elements taking advantage of the dire situation," Roxas said.

He stressed however that urgent action was also needed with regard to domestic production of rice, in order to reduce dependence on imported grains.

He proposed the following to ensure a bountiful harvest, which would prevent the problem from recurring next year:

1. Strict enforcement of a moratorium on conversions of irrigated land, and an investigation on how much the government has spent on irrigation for these converted lands;

2. Ensuring that all of the inputs necessary—seeds, fertilizer, pesticides, among others—are made available to farmers;

3. Developing "small water impounding" irrigation systems, which cost only about P30,000 per hectare, versus large-scale irrigation through dams which costs P100,000 per hectare.

4. Opening up the Agusan river basin areas for planting, as these are ideal for planting rice; and

5. Investing in eliminating wastage in the drying of rice, estimated at 30% of annual consumption, which is more than enough to cover the NFA's importation of 2 million MT of rice or 17% of annual consumption.

Roxas also noted how the population increased by 16%, from 75.50 million in May 2000, to 88.57 million as of August 2007, and warned that the projected population by 2009 of 92.22 million would mean nearly 4 million more consumers in two years' time.

"Now that the government knows it has more mouths to feed, it must be more focused in ensuring food security by boosting domestic production. We can no longer rely on importing for rice, because excess supply from abroad is hard to come by, and at great cost," Roxas, Chairman of the Senate Committee on Trade and Commerce, said.

"We can’t say that our domestic production for rice has increased likewise. In fact, we are importing over 2 million metric tons this year, above the 1.2 million MT we had been importing in previous years," he added.

Saturday, April 19, 2008 | posted in arthur yap, food crisis, mar roxas, nfa, pgma, philippines, president | 0 comments [ More ]

Roxas: Focus on plentiful domestic harvest, not 'pakitang-tao'

Senator Mar Roxas called on the executive to provide clear solutions to address the insufficient domestic production of rice, rather than be focused merely on political considerations which do not provide any real help to the people.

"The government is on the wrong track in adopting the tingi approach to our rice problem. This is a production and supply problem, and so, we must address its root causes and not just the symptoms. Ang problema natin, kulang ang bigas, kaya dapat ang focus natin ay sa pag-siguro na na may sapat na ani," he said.

"The government's response is politically influenced. I see summits and lots of photo-ops, but I don't see substantive programs. It's unfortunate that the government activities are a-la-police—the NBI will raid, the military will distribute—but I have not seen much in how we can produce more rice," he added.

Roxas also warned the administration not to issue rice access cards unless there is a competent system in place and clear guidelines to be followed by local officials and the National Food Authority, to avoid confusion and politicizing the process.

"If we have a rice rationing system, politicians will now say 'yung mga kakampi ko, magkaka-bigas.' Whenever there is shortage or rationing, you now introduce the element of subjective choice, or who-gets-what. Mahirap iyan," he said, explaining that this could lead to more confusion and could trigger food riots and demonstrations.

"Instead, I recommend an expansion of the Food-for-Work program where poor families are harnessed to help in their communities, in exchange for a stable supply of food," the Chairman of the Senate Committee on Trade added.

The Liberal Party President said to ensure plentiful domestic harvest, he proposed:

1. All conversions of irrigated land should be stopped, and investigate how much has the government spent on irrigation for these converted lands;
2. Ensure that all of the inputs necessary—seeds, fertilizer, pesticides, among others—must be made available to farmers;
3. Consider the development of 'small water impounding' irrigation systems, which costs only about P30,000 per hectare, versus large-scale irrigation through dams which costs P100,000 per hectare;
4. Open up the Agusan and Lanao marsh areas for planting, as these are ideal for planting rice, similar to the Vietnamese river delta basin;
5. Invest in eliminating wastage in the drying of rice, estimated at 30% of annual consumption, and more than enough to cover the NFA's importation of 2 million MT of rice or 17% of annual consumption.

He noted that aside from the planned issuance of rice vouchers, the administration had already floated a hodge-podge of stopgap solutions, including:

1. Limiting how much NFA rice an individual may buy;
2. Using of indelible ink to discourage returning buyers;
3. Calling on consumers to eat brown rice;
4. Calling on fast-food chains to offer half-cup rice;
5. Linking up with Churches and LGUs, and even deputizing soldiers, to help in distributing cheaper varieties of NFA rice;
6. Threats of raids on warehouses even if there are no clear guidelines yet.

He noted that the government has embarked or at least floated these solutions, even as it denies that a rice supply crisis does not exist.

"Kaya nga dapat magpakatotoo ang gobyerno at aminin ang problema sasambayanan para sama-sama tayong lahat sa paghanap ng pinakamagandang paraan at solusyon sa krisis na ito," he added.

The senator noted that rice-exporting countries have already announced its plans to curb medium-grade rice exports to protect their own respective domestic supplies.

"This makes our call for an emergency ASEAN Leaders' Summit on the rice crisis even more urgent. We can then appeal to our rice exporting neighbors to give priority to fellow ASEAN members in the allocation of exported rice," Roxas said.

"Now, the surplus is gone, the old standby—'never mind, we can always import'—is no longer available. This is not just a slogan of 'food security,' we must now produce our own rice," he said.

Thursday, April 17, 2008 | posted in asean, food crisis, mar roxas, nfa, pgma, philippines, president | 0 comments [ More ]

Roxas: Gov't stoking public emotions by "knee-jerk" moves on rice crisis

Senator Mar Roxas criticized the government for its knee-jerk reactions to the rice crisis that have set off adverse effects on the rest of the food chain and that are stoking the emotions of the people.

“It is clear that the government doesn’t know what it is doing. Until now, the administration has not acknowledged that we do have a rice crisis which affects Filipino families across the nation,” he said, adding that the prices of oil, rice and other food commodities are all inter-connected.

Philippine bakers have recently announced they will hike pan de sal prices by P0.50 centavos each. This, as the price of wheat—which is not being produced locally—has increased steeply in the world market.

“Hindi lang presyo ng pandesal ang tataas kung hindi pati ang palaman sa pandesal dahil sa kabuuan, ang presyo ng pagkain at langis sa daigdigang merkado ay pataas din ng pataas,” Roxas explained.

“In normal times, the workingman’s breakfast is a choice between pan de sal or a bowl of lugaw in a nearby market. But now he is caught in a rut, because both items have become more expensive,” he said.

Roxas added that prices of processed and canned meats would also go up due to several factors, such as tighter quantitative restrictions on imported meat, increasing prices of locally-produced meat and of tin cans as well as higher transport costs due to soaring oil prices. Prices of meat are also affected by the decreasing supply and increasing costs of feeds, such as wheat and corn.

“At the same time, the government is inviting public indignation by randomly announcing raw ideas without prior consultations with the sectors who are concerned and affected,” he said.

“President Arroyo has to take charge, be open to the people and gather the whole national team together to bear upon this multi-faced challenge,” he said.

The senator lamented the administration’s preoccupation with deceptive visuals – only a few lining up for cheap rice, stacks of rice in NFA warehouses, repacking of rice into smaller bags, the use of indelible ink, and soldiers as distributors of rice stocks—that only aggravate public anxieties instead of allaying them.

“Magpakatotoo tayo. Due to the high commercial prices of rice, the NFA’s limited supply of cheaper varieties of rice will never be enough to feed our hungry population,” Roxas said.

The president of the Liberal Party said the government can heed the people’s call for immediate relief by suspending the 12% VAT on oil and petroleum products.

Saturday, April 12, 2008 | posted in e-vat, food crisis, mar roxas, nfa, oil, pgma, philippines, president | 0 comments [ More ]