MANILA, Philippines – The rise in the price of rice and job misery are major causes of high hunger

incidence in the Philippines, a study conducted by the University of the Philippines School of Statistics
(UPSS) found.

“The increases in the price in the local market is one of the major reasons for the spike in hunger
incidence during the period. Another key factor affecting hunger incidence is the availability and the
quality of jobs,” Dr Dennis Mapa of UPSS said on Wednesday, September 23, in the symposim “Towards
Zero Poverty.”

Data from the government and private institutions showed a “very slow reduction” in hunger incidence
in the last 5 years. According to the Philippine Statistics Authority (PSA), the percentage of “extremely
poor” Filipinos decreased slightly from 10.9% of the population in 2009 to 10.4% in 2012.

These, despite the fact that the country had experienced “respectable” growth in its gross domestic
product (GDP) from 2010 to 2014 under the Aquino administration

Rice inflation

According to the study, the rise in the price of rice affects the poorest Filipino families.

The price of rice, considered a staple in most Filipino households, had been steadily increasing the past
years. Inflation, Mapa said, should be checked on two levels.

“We only focus on headline inflation when we should also be looking at the consumer price index (CPI),”
he added.

The CPI looks at inflation in reference to the poorest 30% of Filipinos. For example, the study found that
inflation rate among the poorest 30% in the 3rd quarter of 2008 was 19.3% compared to the headline
inflation of 13.9% that was reported.

Mapa said this is because poor families spend 70% on food, with 23% of that expenditure spent on rice,
while families in the middle and upper classes spend only 30% on food.

“The shock in the rise of the price of rice in a quarter increases the total hunger incidence in the next
quarter,” Mapa, citing the study, said.
The study noted that the impact of the change on the price of rice on hunger incidence almost doubled
after the global rice price crisis in 2008. (READ: The problem with rice)

Job misery index

The study also found a relationship between job misery index (JMI) and hunger incidence.

JMI is considered the sum of employment and unemployment rates. It looks at both the quantity and
quality of jobs.

As in rice inflation, an increase in the JMI in one quarter leads to an increase in hunger incidence in the
next quarter, the study found. The country’s high JMI also means that a large percentage of labor
resources are underutilized.

Innovations in rice

Dr Bruce Tolentino of the International Rice Research Institute (IRRI), speaking in the same panel, said
changes are happening in the country’s rice sector.

“Our farmers respond to what is happening around them. They respond to incentives, policy…trying
their best to survive the best they can,” he said.

Tolentino added that land reform sped up starting 1987. The number of owned farm lands is increasing,
while shared tenancy is decreasing. While wet season yields plateaued at 4 tons per hectare (t/ha), dry
season yields almost doubled in the past 5 decades.

The Philippines is also the lowest user of insecticides among other rice-producing countries like
Thailand, Vietnam, Indonesia, and China.

Compared to Vietnam and Thailand, however, the growth of the Philippines harvested rice area
remained slow. Vietnam’s rice harvested area increased from 4.7 million hectares (mh) to 7.7 mh from
1961 to 2012, Thailand from 6.1 mh to 10.8 mh, the Philippines from 3.2 mh to only 4.7 mh.
Challenges

Big challenges remain for the rice industry, according to IRRI. One is the effect of climate change, which
worsens flooding during the wet season.

While IRRI had invented rice breeds that can survive 17 to 21 days of floods, Tolentino said the floods
can still be avoided.

“We call it man-made disasters. Floods are worsened by infrastructures like poultry farms and highways
that block water flow,” he said. (READ: Making rice cultivation more eco-friendly)

The number of high school and college graduates among young farmers and farmers’ children has also
been increasing in 5 decades. While this might seem to be a good thing, it might be troubling seen
farming has now become just a side business.

“In 1979, the average age of farmers was 43. In 2011, it was 59,” Tolentino said, noting that many
farmers’ children now take non-farming jobs.

Outsourcing of farm labor, according to IRRI, may increase inefficiency due to (1) the frequent
replacement of labor, and (2) new laborers are increasingly less skilled.

Tolentino concluded that the way forward is for the Department of Agriculture (DA) and the National
Food Authority (NFA) to align their missions and metrics.

“Towards Zero Poverty” was organized by the Asian Institute of Management (AIM) to conclude their
project of the same name which studied poverty reduction through inclusive growth. – Rappler.com