The Rice Crisis in the Philippines
(Photo Credit)
By Jennifer Juptner
Rice in California is typically paired with sushi, teriyaki bowels, and Mexican food. To many, rice is a cultural staple in their diet that exists beside a main dish. To urban poor in the Philippines, rice is the main course of daily meals, and it’s counted upon for survival.
According to an October article in the New York Times by Aurora Almendral, the price of food in the Philippines has skyrocketed since President Rodrigo Duterte has taken office. Typically, rice is cheap and therefore a staple for many in the Philippines. However, today the price of rice in community markets has gone up double the import price (Almendral). The New York Times article works to offer possible reasons for the inflation of rice prices, claiming President Duterte blames rice dealers, hoarders, and Trump. The article itself offers that typhoon season may also be to blame for wiping out the country’s rice supply.
Professor Clarete, a professor of economics at the University of the Philippines Diliman, says of the National Food Authority in the article, “It could be they are not appreciative enough of how the market works. Or cruel.” While the article does credit President Duterte with removing restrictions on rice imports, and offers scarcity as another contributing factor to the rice crisis, the article is seeded with bias against President Duterte that potentially blames him for the shortage of rice in the Philippines.
Is the president to blame for the price and shortage of rice?
An article published a month earlier on Forbes explains more of the economic context of the rice crisis. It does not spotlight a shortage of rice like the New York Times article, but rather reveals the current economic context of the country and the rapid inflation affecting the price of food in general in the Philippines.
The Forbes article reveals inflation in the Philippines had already accelerated to 64% by September and the country's growth was beginning to suffer as a result. The article explains President Duterte is seeking advice from former President Gloria Macapagal-Arroyo and avoids placing blame directly on President Duterte, in contrast to the New York Times article. In fact, the Forbes article says President Duterte plans to liberalize rice imports, which the New York Times article confirms that he does by October.
The article describes the economic situation in the Philippines as bleak: “An overheating economy hits productivity (by raising operating costs), savings (by decreasing real interest rates), and, eventually, consumption. Crucially, it asymmetrically affects the most vulnerable sectors in the society, who spend a disproportionate share of their income on basic necessities.” The article claims tax reforms, raising oil prices, and falling currency are to blame.
While the Forbes and the New York Times articles offer different variables as being responsible for the crisis in the Philippines, neither offers a concise explanation of or solution to the problem. The Forbes article attempts to offer former president Macapagal-Arroyo as a solution, commending her previous economic reforms as the acting president of the Philippines, yet diminishes her reliability by simultaneously referring to her past label as “the most corrupt president.”
In an article published in September on Rappler, before the New York Times and Forbs articles, JC Punongbayan argues the government in the Philippines should prepare for rice shortages and explains the slumping value of the country’s currency is making imports costlier. The article further explains one of the biggest factors behind inflation in countries is people (Punongbayan). Falling currency values make people waver in their faith in the government and effects how people behave, which can cause currency value to fall and prices to rise even more.
According to the Philippine Daily Inquirer, rice hoarding is in fact occurring in parts of the Philippines. Hoarding rice causes its prices to go up due to scarcity, which makes it more valuable. President Duterte was not off the mark when he stated rice hoarders could be partly to blame for the rice crisis, however they are not the sole contributing factor. Arguably, they play a very small role in this crisis. As the cost of importing rice rises, it can be surmised that President Durate’s action of removing restrictions on rice imports was a small plug in a really big financial hole and it was added a little too late.
The weakening currency, scarcity, and hoarding behaviors in the Philippines will continue to rise the price of rice to astronomical levels, unless the president and his team can come up with more ways to productively combat this crisis and feed its people. If they don’t, they are ensuring that the urban poor in the Philippines will stay hungry.