:. Food Industry News


Philippines Calls for Regional Meeting on Rice

Source: Reuters
11/04/2008

Manila, April 11 - The Philippines, one of the country's most affected by soaring rice prices, called on Friday for a meeting of Asian ministers to discuss a global rush for the grain that has heightened anxiety about food security.

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"We must address the plight of food-poor families in the countries most affected by the rice price crisis," Agriculture Secretary Arthur Yap said at a meeting at the International Rice Research Institute (IRRI).

Rice prices have more than doubled since the start of this year as some of the world's top suppliers have curbed exports to tame surging food inflation at home, creating fears of shortages in importing countries.

The Philippines, one of the world's top rice importers, has been scrambling to bolster its stockpiles ahead of a traditional lean period in the third quarter and is being forced to fork out more and more at each rice tender.

Despite assurances that there is sufficient supply, the sight of soldiers guarding rice lorries in Manila has spooked some consumers and there are long queues to buy state-subsidised bags of the grain.

In Kuala Lumpur, Malaysia's agriculture ministry said it planned to spend an additional 6.0 billion ringgit ($1.9 billion) to raise rice production.

The money would be used to open up new rice plantations and build irrigation, the state Bernama news agency quoted Agriculture Minister Mustapa Mohamed as saying on Friday.

Malaysia produces about 70 percent of its domestic rice needs and fills the shortfall through imports. It hopes to raise the output level to 90 percent. IRRI, which helped boost rice yields in the 1960s and 1970s through the development of high-yielding rice seeds, said increased production was possible.

"The problems related to rice production and supply in Asia over the past year or more are cause for serious concern but not for panic," said Elizabeth Woods, the newly appointed chair of IRRI's board of trustees.

"We must also recognise the global scale of the problem, especially the fact that many African nations depend on Asian rice production for their food security."

Woods said IRRI could solve the latest rice production problem.

She said work was needed on the following areas; crop management skills, more efficient post-harvest facilities, higher yielding rice varieties, rice breeding and research, including using the thousands of rice varieties available and training a new generation of rice scientists.

"IRRI and its partners solved similar rice production problems in Asia in the 1960s and '70s and we can do it again," she said.

Rice analysts and traders already expect the frenzy of recent purchases to ebb as extra crops boost supplies and importers grow more confident on future supplies.



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