Rice crisis to cost Philippines 1pc of GDP: Study
Soaring food prices are likely to cost the Philippines nearly one percent of its economic output this year to ensure adequate supplies to the poor, Credit Suisse said Wednesday.
The government has announced plans to import up to 2.7 million tonnes this year even as prices soared to near-historical levels amid tight global supplies.
President Gloria Arroyo has cited rising food prices as a threat to the Philippine economy, while analysts have warned major rice importers that soaring prices could lead to social unrest and pose security problems. The government has deployed police and military to crack down on rice hoarders.
The Swiss-based investment bank said in a study that Manila was likely to import 2.6 million tonnes this year at up to 1,000 dollars a tonne to ensure it would have enough stocks to sell to the poor at state-subsidised prices.
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