Contrived

After many days of warning us this was coming, the Department of Agriculture declared a "food security emergency on rice" last Monday. We are told this will be in effect for only a short period. It will very likely be ineffectual.

- ALEX MAGNO

The emergency will not solve our chronic inefficiency in rice production. It will not bring about a Green Revolution. It will not deliver the P20 per kilo rice PBBM promised during his campaign. It will not even break up the trading syndicates said to have made billions by pocketing the proceeds from the reduction in rice tariff rates rather than passing on the benefit to consumers.

At the moment, we face no rice shortage—thanks to the liberalization of rice trading. The spike in rice prices happened this time last year. Today, with a global bumper crop, rice prices are in fact softening.

An "emergency" such as was declared this week may be justified only under two conditions: when there is a shortage of the staple and when prices are spiking uncontrollably. Neither applies today.

This is a contrived "emergency." It is intended to accomplish only one thing: to provide a cover for the NFA to sell rice stocks at artificial prices to LGUs and the Kadiwa operation.

Without this cover, the NFA is required to dispose of its excess stocks through a public auction. This rule is an anti-corruption measure.

With the "emergency," the NFA may now sell its stocks at a politically determined price. This throws every market discipline out of the window. Government determines prices as in a centrally-planned economy.

The NFA will now sell about 150,000 tons from its reserves at an artificially low price. This will result in a massive loss for government—and, eventually, for all taxpayers.