There is no need to panic over the reported supply shortage in rice.

This was the assurance made by National Food Authority (NFA) Bohol assistant manager Ma. Fe Evasco when asked by the Chronicle regarding the status of the supply of government subsidized rice here.

Similarly, Department of Agriculture (DA) Bohol crops productivity division chief Remedios Regacho pointed out that Bohol still has sufficient supply of rice despite nationwide reports of a shortage.

According to industry sources, prices of palay in Bohol are determined not by the farmers but by "sub-buyers" who are agents of "palay assemblers who in turn are middlemen for two major rice buyers.

NO SUPPLY INTERRUPTION

In a separate interview, NFA Bohol manager Nestor Rey Alcoseba said it is not proper say there is rice shortage here as recent harvest data in Bohol shows otherwise.

He said, as far as NFA rice is concerned particularly for Bohol, everything is normal with the standard shipping allocations for the province's NFA rice still coming in regularly.

"So far, there is no interruption in the [delivery] process," he said.

While Alcoseba acknowledged "the big drop in the availability of rice in the global market," he said "we have encouraging reports, and based upon this summer's harvest, it's as far, so good."

According to Servillon, the estimated palay harvest in the province for the months of January to March 2008 is 93,941 metric tons or 1,878,820 sacks of 50 kilos.

An additional estimated palay harvest for the month of April is also expected at 25,000 metric tons or 500,000 sacks of 50 kilos. The estimated annual per capita rice consumption is 125 kilos. Latest NSO statistics showed Bohol's population at 1.3M
Regacho, on the other hand said, the production in the last five years here showed significant increases. In 2003, for example, Bohol only harvested 116, 286 metric tons while the figure posted a 71.14% increase in 2007 with 163, 441 metric tons harvested.

The increase, Regacho credits to many factors, one of them the 16,353 hectares more of lands cultivated for rice. Moreover, she pointed a significant increase in average yield per hectare here, which used to be at 2.15 metric tons in 2003 to about 2.32 metric tons in 2007.

She also pointed out that there is still considerable huge track of rice-fields in Bohol that are basically rain-fed, so the yield per hectare is relatively lower.

On the other hand, Alcoseba admitted that as far as the NFA rice is concerned, his office is stressing on the 2008 government strategy of marketing the government subsidized rice in depressed areas.

He said much of the bulk in their rice goes to the government's Food for School Program and the Tindahan Natin outlets.

"These are the people who would need the cheap rice most," he stressed.

Alcoseba appealed to big rice traders not to make the situation worse by hoarding.

LOCAL INITIATIVES

Sangguniang Panlalawigan (SP) agriculture committee chair, Vice Gov. Julius Ceasar Herrera, in an interview over dyRD's Inyong Alagad, urged the Boholanos to calm down and utilize idle lands to extend ricefields. This, even as he said this is not really just a problem experienced in Bohol but a global phenomenon.

Gov. Erico Aumentado, for his part, said he will issue an executive order to control selling of rice to other provinces.

After airing their side on the rice issue during the weekly "The Governor Reports" an agreement in principle was forged between wholesalers/millers, the NFA and the Provincial government limiting to a maximum 500 bags per week each trader can ship out to other provinces during harvest time.

Grains traders told the Provincial government that they had to fulfill prior commitments to clients outside the province. Although they requested for a maximum 500 bags a day outbound shipment or 3500 bags per week per trader, NFA Manager Alcoseba prevailed on the traders to reduce the number of bags to 500 per week to assure Boholanos of sufficient supply during the traditional lean months starting June to October.

Alcoseba further assured traders that the regulated outbound grains shipments to other provinces will be lifted after a declaration of normalcy in the rice supply by the DA.

Alcoseba also revealed that an existing NFA memorandum requiring permits for outbound shipments of more that 3,000 bags per day is being reduced to 300 bags per day. To avoid confusion between the NFA memo and the proposed EO, further studies should be conducted as basis for the final determination of the number of bags allowed to be shipped out.

In a phone interview with Provincial Legal Officer Atty. Handel Lagunay, the executive order limits outbound rice shipment to other provinces to 500, 300 and 100 bags per week for big, medium and small grains businessmen based on their declared capitalization with the NFA.

The order also included mayors of LGU owned ports, Coast Guard and the PNP to strictly monitor and enforce the weekly limit of outbound rice shipments per trader.
As of presstime, the executive order is awaiting the signature of the governor, according to Lagunay.

Meanwhile, retailers raised apprehension on the wisdom of increasing the governments support price for palay to P17.00 per kilo. Adelaida Lumain, president of the Bohol Grains Retailers Confederation feared that they might be at the receiving end of public complaints of rising rice prices since they would be buying from their sources based on the new support price.

Inspite of the reported bountiful harvest retail prices of rice has been increasing weekly. This was attributed to expensive inputs of certified hybrid seeds, fertilizers and pesticides.

Latest price monitoring reports showed a P3.00 per kg average increase of prices of rice for the different varieties sold in the local markets.

However, the president of Bohol rice retailers assured the governor they will not join the planned "retailers holiday" by their Metro Manila counterparts.

But Alcoseba allayed fears by grains retailers that the 42% increase in the government support price of palay will trigger a rise on the retail price of rice since this will encourage farmers to sell to NFA which in turn will increase their buffer stocks. NFA's calibrated market intervention during high rice prices greatly influence prevailing commercial rice prices.

Government rice policy thru the NFA assures farmer of a fair return on their investments. To cope with the increase in agricultural inputs and compete with the commercial rice traders NFA increased the palay floor price to P17.00 per kilo from P12.00 per kilo.

At present NFA is selling their imported rice to accredited NFA retailers at P16.75 per kilo while buying at the world market at P29.00/kilo for a subsidized price of P12.25 per kilo.

NFA rice is sold to rice consumers at P18.25 per kilo by NFA accredited retailers. (With reports from CHITO VISARRA)