Sri Lanka Food Price Rise Rice Shortage, NFA Assure Rice Supply

Sri Lanka paddy growing districts the large-scale devastation triggered by the current torrential rains is raising the possibility of a rice shortage coupled with food price rises.

More than 50 per cent of the Maha harvest has been lost to the rains, while at least 80 per cent of the paddy lands in the Batticaloa district and 70 per cent of such lands in the Trincomalee and Ampara districts respectively, have been destroyed by the floods, informed sources said.

Sri Lanka?s problems on the food front will be compounded by a severe shortage of rice in the world market. Only Viet Nam has an exportable rice surplus at present and the chances are that it will jack- up its rice price in these circumstances, they said. Thus, a rice shortage and rising food prices in the not too distant future cannot be ruled out.

When asked for his observations on the current flood crisis and connected problems, former director of agriculture and internationally-renowned authority on soil and water management Dr. C.R. Panabokke said the government had no time to lose. Without further delay, the government should line-up programmes and strategies to address the issues which have arisen.

"The state is faced with the task of, first, streamlining its operations on the flood relief and food security fronts. Right now, the administration is highly fragmented with there being no clear line of command in relation to carrying out urgent remedial action to secure the needs of the public. What is needed is an inter-disciplinary task force headed by the President, which will ensure the streamlining of the administration. This will bring about coordinated action on the part of the governmental agencies currently addressing the problems which have arisen with the floods."

"We cannot have too many persons and agencies pulling in different directions. In the eighties, the country could face any emergency because the administration was streamlined, and there was a clear line of command. Consequently, clear-cut decisions could be obtained," he pointed out.

Panabokke said seed paddy is scarce at the moment on account of the devastation suffered by paddy lands. Without seed paddy, rice cultivation cannot be revived and this factor too would impact negatively on rice availability.

"The current cold weather will play havoc with paddy cultivation. The cold will bring about a degree of sterility in seed paddy and render it uncultivable. It should be realised that the successful cultivation of paddy is dependent on dry spells, inasmuch as it is dependent on rain. Dry weather is necessary for the maturing and harvesting of paddy," he said.

"It is time to think of alternatives to rice. The state should look into the possibility of promoting the cultivation of coarse grains, yams and tubers, for instance, and depend less on rice cultivation," Panabokke explained.

In other country, National Food Authority (NFA) assured the public on Tuesday of stable prices of rice and adequate supply of up to 45 days, which exceeds the 30-day security buffer that the agency is mandated to maintain.

At the same time, lawyer Guilbert Lauengco, special assistant to NFA Administrator Angelito T. Banayo, said the government's food agency is also ensuring continuous support for Filipino farmers while stabilizing rice prices and supply.

Guesting at Tuesday's edition of the "Talking Points" radio program aired over DZRB Radyo ng Bayan at the Philippine Information Agency (PIA) Bldg. in Quezon City, Lauengco said the wholesale price of NFA rice is from P23.50 to P25.00 per kilo, which took effect on Dec. 7, 2010.

He said that on the retail level, the price is P27.00 per kilo.

He added that the last time there was a rice price increase was last December.

The move is among the measures the government is undertaking to ensure the viability of the agency and continue fulfilling its mandate of supporting farmers to produce enough for self-sufficiency, Lauengco added.

According to him, the NFA is ready to flood the market with government-procured rice to discourage unscrupulous traders from jacking up commercial rice prices.

"Prices of commercial rice follow the law of supply and demand. If some traders jack up their prices, we will flood the market with lower-priced rice and they will find themselves selling at a loss," Lauengco told the "Talking Points" radio program hosted by broadcast journalist Allan Allanigue of the Philippine Broadcasting Service (PBS).

The radio program is a joint effort of the Presidential Communications Operations Office (PCOO), PIA, PBS and National Broadcasting Network (NBN-Channel 4.

Lauengco said the NFA's lowest-priced "commercial" rice costs P27.00/kilo ?- after the government imposed a P2.00/kilo hike effective Dec. 7, 2010.