Malacañang urged to nix Asian OPEC-style rice cartel

MANILA, Philippines - A pro-administration lawmaker on Thursday warned the public about the looming formation of the organization of rice exporting countries (OREC), which would create a cartel and dictate rice prices. At the Senate, Majority Leader Francisco Pangilinan urged Malacañang to formally express opposition to OREC, saying this would worsen the food security problem of the Philippines. Rep. Abraham Mitra said the decision of the five Mekong river countries – Thailand, Vietnam, Burma, Cambodia and Laos – to form OREC similar to the oil cartel OPEC should be a “wake-up call for the Philippines to achieve rice self-sufficiency soonest." “One good thing that OREC will probably bring is it will force us to grow more food. If we have the resources to grow rice, then there is no reason why we should allow ourselves to be a hostage of any cartel," Mitra said. The congressman, who heads the House committee on agriculture, reminded the government that the Philippines has “control over agricultural policy, and that is to start to be insular-looking when it comes to rice and food security." “We are entering an era in which the saying ‘No man is an island’ can be applied no more to rice. At least on this staple, we must strive to grow all our needs," Mitra, who represents Palawan, said. Pangilinan opposed the creation of a rice cartel and appealed to those proposing the move to "think twice for humanitarian reasons." "The rice cartel will be anti-poor, and its global implications will be tremendous. If the Philippines doesn't assert itself now as an ASEAN member and as a rice producing economy, we will soon be at the mercy of this proposed Organization of Rice Exporting Countries (OREC)," Pangilinan said. Meanwhile, Mitra said there is no longer any point in the “previous school of thought" that the country can use its vast tract of land resources “for more lucrative agricultural and non-agricultural purposes, and use the income to buy cheap rice abroad." “But what’s the use of your money if no rice is available at any price overseas? It’s like looking for water in the desert. You may be willing to exchange a bar of gold for a cup of water, but it’s totally worthless if there’s not a single drop around," he pointed out. Mitra, in a statement, said the “initial rice price shocks" would lead the Philippines to eventually overcome “supply gaps" in the staple. “Necessity is the mother of rice production." Mitra nonetheless lauded the efforts of the Arroyo administration to address the crisis. “To its credit, government is moving towards that direction (self-sufficiency). Funds are being released, agencies are mobilized. Once shunned as a poor cousin of high-value crops like asparagus, rice is again the star of the agriculture program," he said. Mitra, on the other hand, allayed fears that the rice production drive would lead to “monocropping" and the eventual loss of the “rich variety of Philippine agriculture." “That is unfounded because if you bring irrigation to farms, it will serve other crops. It will promote diversity. If you build a solar dryer, it can also be used for corn, copra, black pepper. If you build a road, it will not be exclusive for rice trucks alone," he said. “The catch-up program for rice, in which we are making up for years of neglect, will benefit agriculture across-the-board so that when rice becomes abundant, the facilities such as irrigation, roads are already should some of our farmers shift to other crops," he said. - GMANews.TV