Gov’t to boost rice spending

The government is looking to boost spending on rice to ensure a sufficient supply of the staple, Finance Secretary Margarito B. Teves said. The country’s economic managers, the Finance chief said, would be meeting with Agriculture Secretary Arthur C. Yap to discuss measures to prevent a rice shortage and keep prices under control. "As far as expenditure subsidy, we plan to increase this. In terms of exactly how much more, we will decide on this after consulting with Secretary Yap and the economic managers," Mr. Teves told reporters over the weekend. The government has pegged a P12.3-billion subsidy to the National Food Authority (NFA) for rice imports. The Philippines sources 10% of its rice requirement from neighboring countries like Vietnam and Thailand. The Finance chief said cutting tariffs was also an option although the government still has to check if the move is "really productive." Mr. Teves said the government will look into extending the subsidy to the private sector. Mr. Yap, meanwhile, said the government has not determined how much will be needed. "I will favor a tax expenditure subsidy for rice over a tariff reduction. We cannot determine costs right now since international market prices are changing by the day," he said in a text message. "Prices of rice have been growing faster than the adjustment in the domestic price, so there is a net requirement needed by the NFA. This is the thing we need to consolidate, and come up with a figure," Mr. Teves said. Officials have given assurances that the NFA would continue to sell rice at P18.25 per kilo. — A. B. L. Lorenzo, BusinessWorld