Vol. XXI, No. 213 [ Business World Online ]
Friday, May 30, 2008 | MANILA, PHILIPPINES
A TWO-YEAR moratorium on the conversion of rice lands has been ordered by President Gloria Macapagal Arroyo, given a global food crisis and the Philippines’ continued inability to become self-sufficient with respect to the staple.
Not producing enough. — AFP
Administrative Order 226, signed by Executive Secretary Eduardo R. Ermita last May 16, states that "To meet the needs of the increasing number of Filipinos, there is a need for the production of rice to be optimized to meet our local needs and consumption."
"To ensure sufficient rice supply, there is a need for all lands utilized and intended for rice production to be protected from any other land use conversion."
An economist, however, said the government should consider the order’s impact on job-generating investments.
AO 226 suspends the processing and approval of all land conversion applications affecting rice lands and lands declared under the Agriculture and Fisheries Modernization Act of 1997 as a network of protected areas for agricultural and agro-industrial development (NPAAD).
The NPAAD covers, among others, all irrigated areas, irrigable lands, alluvial land highly suitable for agriculture, areas located at an elevation of 500 meters or above, and those that have the potential for growing crops, mangrove areas and fish sanctuaries.
The Department of Agrarian Reform was tasked to implement the order.
"We are only 90% rice sufficient, we still import 10% [of our rice needs]. Given what happened to the global market, this (the suspension of land conversion) is the best thing to do," Press Secretary Ignacio R. Bunye said.
Growing populations, the biofuels boom, and climate change have been blamed for soaring food prices worldwide. Locally, some sectors claim that the conversion of farm lands to golf courses and subdivisions have contributed to the rice price increases.
Agrarian Reform Secretary Nasser Pangandaman last month ordered the indefinite suspension of farm land conversions for real estate development.
The suspension, he said, would allow for a review of land conversion guidelines and address what he called "the unabated conversion of prime agricultural lands for real estate development."
Rolando T. Dy, executive director of the University of Asia and the Pacific’s Center for Food and Agribusiness, said the moratorium could delay employment-generating investments.
"The order is commendable but what if the conversion is meant to create jobs? Paano kung nakaabante na yung investment sa real estate o sa resorts (What if the investments, say on real estate and resorts, have been advanced)?," he told BusinessWorld.
"Huwag tayo pabugso-bugso. Kung may investor, maghahanap na lang ba sila ng iba? (Let us not be too hasty. If there are investors, are we going to let them go somewhere else?)"
Mr. Dy said the government should conduct studies on the need to ensure enough food supply while at the same time attracting investments.
"We should also empower the local governments and look at these things on a per project basis," he added.
Mr. Dy recommended the rehabilitation and repair of existing irrigation systems, improvement of irrigation efficiency, and the tapping of all irrigable lands.
"Let us look at the viable irrigation areas. We have 3.1 million hectares of irrigable lands. Only 1.4 million are irrigated. That is around 45% only," he said.
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