Is NFA barking up the wrong tree?
IRECEIVED the following input from Oscar Violago, who is impatient with the way that we go through feast and famine with our staple of rice. Violago was a 29-year-old whiz kid who came out of nowhere to help then NFA Secretary Jess Tanchangco source 100,000 metric tons of rice worth $40 million in 1973, when there was none available in the world market. Oscar swears that this happened because of a miraculous intervention by Mama Mary. This miracle was mentioned in the book of Fr. James B. Reuter entitled “Mama Mary and Her Children.” (A testament of faith on this providence.) After several rollercoasters in the business world, a now older and wiser Oscar offers not just a solution but his time and energy to help our rice czars guarantee the staple on our table. His Jeremiah begins:
*** “If there is a better way, NFA should not concern itself much with buying palay from the farmers. In fact, NFA should be happy if it didn’t have to buy from the farmers, because it means the farmers are selling their palay at better price.
“MULTIPLIER EFFECT IN THE ECONOMY
“Like a broken record, I repeat that if our farmers, who comprise the bulk of our labor force, can get a fair price for their palay, they will have more money in the pocket to afford more food, clothing, housing, provide better education for their children, etc. This will create multiplier effect in the economy – the seamless way to arrest poverty and uplift living standard of our people. “SOLUTION “The solution to arrest our recurring rice shortage is for NFA:
• To stock imported rice to ensure enough available at affordable price during the long ten lean months of the year;
• During the two months of harvest season, to withhold the reserve of imported rice in order to enable our farmers to command a fair high price in the market for their palay.
A steady hand on the tiller will give a positive boost to the economy. If our farmers are in better financial position, they will also be able afford to plant certified seeds, avail of fertilizers and use modern technology in planting palay to increase their yield per hectare. “ECONOMICS “The selling price of $519.00/metric ton is higher than the buying price from Thailand and Vietnam at $424.00/M.T. The nearly $100/M.T. margin should cover NFA costs for storage, handling, etc.
“This subsidy (or any additional amount) will definitely be much, much lower than the annual 175-billion subsidy that our government gives to the 4Ps for those out of work or just scratching their stomachs. (Do we really want to encourage habits of mendicancy among our people?)
“FARMERS CO-OPS OR FARMERS?
“NFA should never give up full control on the supply of rice. With due respect, farmers cooperatives by definition operate for their own benefit and profit – not for the general welfare of our farmers and consumers. Unlike the NFA, they are no NGOs to serve our people.
“IT CAN BE DONE. IT HAS BEEN DONE IN 1986.
“NFA Administrator Jesus T. Tanchanco left Two Hundred Million Pesos in NFA coffers in 1986. In contrast, after 32 years, the NFA today owes the National Treasury 1200 billion today. I repeat: A debt of Two Hundred Billion Pesos (three zeroes more).
“(This outstanding debt obligation incurred could have built several mega dams and irrigation canals to set us on the road to self-sufficiency in rice production.)
“Tanchangco built more than 400 huge silos in the late ’70s throughout the country to store our farmers’ produce. These silos withstood 240 kph gale force winds and all still stand and store our harvests today. At the same time, he generated so much for NFA by importing cheap rice and selling in the lean months at a good margin (but always at still affordable price to our consumers).
“When Mr. Tanchanco ran the NFA, he stabilized the price of our basic staple and brought so much benefit to our country. Why can we not use his template, or even better the instruction? With the political will of President Rodrigo R. Duterte, we can do it again!!!
*** “To put time and money where my mouth is, I offer my services as consultant. I do not apply for NFA Administrator, as I am in my autumn years and quite occupied in our businesses. But I am most ready, willing and able to serve as a 11 a year consultant to the Department of Agriculture, NFA and NIA. I say this in the fervent hope that I may repay whatever gifts I have derived from our country and our people.” Feedback: