LOS BAÑOS, Laguna--The plan of the Department of Agriculture (DA) targeting self-sufficiency in rice by the end of 2010 was submitted Friday to President Gloria Macapagal-Arroyo at the International Rice Research Institute (IRRI) headquarters here.

The plan is similar to past strategies in rice production but differs in terms of scope, advances in rice technology, funding commitment and management approach, according to Agriculture Secretary Arthur Yap.

During her visit, Ms Arroyo inspected different rice varieties in the fields and observed farmers holding leaflets on the correct application of fertilizer.

After receiving a copy of the self-sufficiency plan, she witnessed the signing of a memorandum of agreement between the DA and IRRI to accelerate rice production in the Philippines through the development of high-yielding varieties and hybrids.

The agreement, which also provides for the training of new scientists and extension workers, will be in effect for five years.

IRRI director general Robert Zeigler showed Ms Arroyo the flood-tolerant rice variety that the institute had been developing for years.

"This variety carries a gene that makes it tolerant to a prolonged period of flooding," Zeigler told reporters at a press conference.

He said the variety could survive 15 or more days of flooding, unlike the traditional rice plant that usually died after five days under water.

The flood-tolerant rice variety is now in its last stage of evaluation and multiplication in the Philippines, Vietnam, Bangladesh, Indonesia and India.

Clustering
Yap said clustering was the new management approach.

"Decades ago, the rice master plan was implemented on a large, unfocused scale," he said, adding that clustering had been tried and tested, and had yielded significant results.

The new approach will involve "compact cluster areas" of 40-100 hectares.

Yap said not only irrigated lands but also rain-fed lowland areas would be included in the program.

Recently, Dr. Liborio Cabanilla, dean of the University of the Philippines-Los Baños' College of Economics and Management, said food security rather than self-sufficiency should be the government's direction.

Cabanilla said in the paper "The Rice Problem and Persistent Food Insecurity in the Philippines: Is there a way out?" that self-sufficiency in rice production would be costly because the Philippines had inherent disadvantages, such weather patterns, geographical characteristics and water supply.

He said the best way to address the rice problem was through broad-based rural, agricultural and economic development.

Yap said Friday that it would be profitable for farmers to use hybrid rice seeds because the government had increased financial support for seeds as well as fertilizers and pesticides.

He said that in terms of technology, today's rice farmers could gain access to seeds that could help them produce an average of 180 cavans per hectare during the dry season.

He added that the President had committed a total of P43 billion for the new program dubbed "FIELDS" (fertilizer, irrigation and infrastructure, education and extension work, loans, drying and postharvest facilities, and seeds).

No worries
Also at the press conference, Yap said the Philippines had contracted a sufficient volume of rice to cover this year's projected shortfall of some 1.6 million to 1.7 million metric tons.

He said the Philippines secured 1.6 million MT of rice after holding four tenders in the last five months--the reason he was unfazed despite reports that Thailand, the world's biggest rice exporter, had announced that it would not join a Philippine tender slated on May 5.

The fifth tender, which requires traders to secure a sovereign guarantee from the seller-countries, was for the supply and delivery of 675,000 MT of long-grain white rice.

A sovereign guarantee will ensure the traders' faithful compliance with bid agreements. In case a contract is breached, the foreign government that issued the guarantee will be held liable for damages that may be incurred.

"It's not critical for me at this point to get [the full] volume [of rice] to be auctioned on Monday's tender. As I've said, the 10-percent demand gap has already been met. We may even reject offers if prices are too high or unreasonable," Yap said.

"I'm not saying we can relax and that the problems are over. Having contracted the gap simply means that we can afford certain flexibilities on the next tender," he said.

'Comfortable position'
Yap said he would not recommend the lifting of the required sovereign guarantee just to draw more bidders on May 5.

He said the decision of the National Food Authority (NFA) to impose the sovereign guarantee was to ensure that contracts would be honored.

"We're dealing with national security stocks. We don't want to see the possibility of any of the winning bidders backing out," he said, adding:

"We are going to enter the May 5 tender with a comfortable position, knowing that what needs to be procured are just additional buffer stocks needed from September until December."

This means that the Philippines "won't be gung ho in buying all the volume offered to us on the May 5 tender, as prescribed by the Inter-Agency Committee on rice and corn," Yap said.

For 2008, the DA has set an import quota of 2.1 million MT for government procurement through the NFA and another 600,000 MT for private-sector importation.

According to Yap, at the contracted volume of 1.6 million MT, "we're going to enter the lean months starting July 1 with a 32-day national buffer stock."

"So what we will try to do on May 5 is continue procuring and sustain our buffer stock to 30 days up until the end of the year," he said.

Circumspection
Per policy, the NFA has to maintain at any given time a rice stockpile equivalent to 15 days of national consumption. A 30-day buffer stock is required during the lean months from July to September.

The national daily rice consumption is estimated at 33,000 MT.

"We would be looking at the May 5 tender with circumspection. It will be an opportunity to study the volume and prices that can afford the Philippines a better chance to negotiate and procure stocks it will need at the most affordable or beneficial terms to the government," Yap said.

But he said the Philippines was not closing its doors to Thailand on the May 5 tender should it reconsider its position.

"I'm not saying we don't need them. But it would be good for them to join the tender. Their participation is a positive sign. What the world needs today is to be calmed down by greater trade loads from all the exporting countries," Yap said.

He was referring to the restrictions on rice shipment imposed by the leading exporters, which are said to have partly fueled the insecurity over the supply of the grain, pushing prices to record-high levels.

"We have to continue securing stocks for the Philippines because our priority is to make rice available [to] every Filipino," Yap said.

He said the government would strive for self-sufficiency by sustaining palay production at record-high levels while addressing the inventory gap through importation.