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The Honolulu Advertiser
Updated at 1:29 a.m., Monday, April 28, 2008

Philippines helps poor with cheap rice

Associated Press

MANILA, Philippines — The government said it would introduce access cards for Manila's poorest residents to buy subsidized rice as food prices rise dramatically, officials said today.

The rice cards are intended to benefit about a third of the poorest families in the capital, according to President Gloria Macapagal Arroyo's administration. The government said it will separately distribute cash cards to help families in the poorest 20 of the country's 81 provinces with quick money transfers.

The measures came as Arroyo's administration moved to cushion the impact of skyrocketing fuel and food prices. The Philippines has been paying record prices on international markets to make up for a 10 percent domestic shortfall of rice.

The criteria for Manilans to obtain the card is a monthly salary of $120 or less for a family of five. The card allows holders to buy subsidized rice from specialized stores for the poor, called in Tagalog "Our Store." The limit is 31 pounds per week.

Cardholders will pay 42 cents per 2.2 pounds of the subsidized rice, compared with 83 cents for commercially available rice, Social Welfare Secretary Esperanza Cabral said.

It was not clear exactly when the cards will go into effect.

"The objective is to really help the poor," said Social Welfare Undersecretary Celia Yanco. "If they have to compete with those with money they'll really have a hard life."

A separate cash-transfer card, which will be given to 300,000 poorest families in provinces, will include $12 a month plus $7 for every child who logs at least 85 percent class attendance, Cabral said.

Rice topped $1,000 per ton on the international market this month — triple the price from January — and the government said it has so far contracted about half of 2.1 million tons of rice it plans to import this year.

The National Food Authority, the state-run grain importer, plans to hold a fifth tender this year on May 5 for more than 500,000 tons of rice.

Thailand, the world's largest exporter, said Friday it will not restrict exports despite talk of a shortage. Some Asian countries, including India and Vietnam, recently suspended rice exports to guarantee their own supplies.

Arroyo has declared war on rice hoarders, who have been blamed for creating artificial shortages, and promised to improve distribution and invest $1 billion to boost production.

About 40 percent of Filipinos live on less than $2 a day, and about 13 percent — or 11 million — survive on less than $1 a day.

Meanwhile, Malaysia's government plans to subsidize locally grown rice to prevent consumers from being hit by record high prices, a Cabinet minister said Monday.

"The government wants to assure the lower income group that local rice will remain affordable to them," Shahrir Samad, the Domestic Trade and Consumer Affairs minister, told reporters.

Malaysia grows about 65 to 70 percent of the rice its people consume, while the rest is imported, mainly from Thailand. With the price of Thai rice nearly tripling in the last 18 months, the government expects consumers to switch to local rice, whose price — so far steady — is expected to rise.

On Sunday, Vietnam's prime minister warned rice speculators they face severe punishment after rocketing prices led to panic buying over the weekend.

Prime Minister Nguyen Tan Dung insisted supplies in Vietnam — the world's second-largest rice exporter after Thailand — would be enough for domestic consumption, according to state media reports.

But he warned that any organizations and individuals speculating in the commodity would be "severely punished."

Crowds of people flocked to rice markets Sunday in Ho Chi Minh City, the country's largest, to stock up on the grain.