Rocketing rice prices put squeeze on the most vulnerable in Manila slums

PHILIPPINES: Discontent is beginning to grow in the Philippines capital's poorest districts, as rice price hikes threaten the…

PHILIPPINES:Discontent is beginning to grow in the Philippines capital's poorest districts, as rice price hikes threaten the poor, writes Bruce Wallacein Manila

IT IS in the heaving slums of Asia, amid sagging tin shacks and streets afloat with waste, that the soaring global price for rice hits hardest.

Until last week, Imelda Torreras had been able to count on peddling small bags of rice to her neighbours in the putrid streets of Manila's Tondo district, a way to supplement her family's meagre income as garbage brokers.

Now, the rocketing price of rice has pushed her out of the food business.

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Customers used to paying 65 US cents for a kilo of rice have balked at increases that have pushed the price as high as 90 cents, a swift and devastating rise for the desperately poor.

"The price I was paying the wholesalers was rising so fast I couldn't increase my own prices fast enough to keep up," she said, sitting in the entrance to her home as neighbourhood children tumbled in the mud around her.

"People around here won't pay that kind of money for rice."

The Philippines, a country of more than 90 million people, is the world's largest rice importer.

And the United Nations World Food Programme warned on Monday that rising food prices mean Asia's poorest risk a "silent famine". Indeed, rice prices on commodity futures markets have more than doubled in the last year.

As with surging global wheat prices, the increase has been blamed on several factors, from rising transportation and fertiliser costs stemming from record oil prices, to hoarding by wholesalers who smell even bigger profits to be made down the road.

The result, economists and aid workers warn, is that millions of poor people may go hungry if the staple of their diet is priced beyond reach.

The most vulnerable are those earning less than $2 a day, for whom even a small price increase means the loss of a crippling chunk of disposable income.

Philippine president Gloria Macapagal Arroyo's government says it has enough rice to meet domestic needs for the next two months and dismisses warnings from some that higher rice prices could lead to riots. But the government acknowledges that it must secure 2.1 million tons of new orders by July.

Last week, Philippine officials scoured global markets in a futile search to fill an order of 500,000 tons. Such ominous signs are behind the price jumps that are only beginning to touch places like Tondo, which includes some of the capital's harshest slums.

The problem in Tondo is not a rice shortage. Rice is visible in shops. And it is still boiled and sold by food vendors to the ragged tribe of children and adults who spend their days tearing apart garbage heaps in search of anything of value. The problem is higher prices.

Many people have turned to subsidised rice, which is sold from public offices or from the backs of government trucks that have begun showing up, without notice, in poor neighbourhoods.

Government rice is sold at 37 cents a kilo, though some Filipinos complain that the quality is poor.

"My littlest one complains about the smell," Torreras said.

Torreras, her husband and the rest of their family know they eat better than many in the neighbourhood.

As brokers in the garbage business, she and others like her get first crack at a slum staple known as "pagpag" - the bits of meat shaken from chicken bones found in the waste that is dumped in the neighbourhood by fast-food restaurants.

"Pagpag" can be repackaged or grilled again for resale.

This making of a meal out of something so meagre speaks to the survival instincts of those who live in Manila's slums.

Under a searing sun, Jonathan Baupol breaks from sifting rubbish to buy lunch: a softball-sized bag of boiled rice that has gone from 10 cents to 12 in the last few weeks.

Baupol has no desire to follow government suggestions that he substitute root vegetables or a bit of bread for a rice meal. He expresses the widespread sentiment that rice is as indispensable to a Filipino as oxygen.

"It makes us feel weak when we don't have it," he said. "I'm still eating the same amount."

That cultural attachment hints at the potential for unrest should Filipinos have to slash their rice consumption.

Arroyo's government, already stained by allegations of endemic corruption, didn't endear itself to anyone with suggestions that roadside food vendors and restaurants halve the size of their rice portions as a way to reduce demand.

Eager to show she is on top of the crisis, Arroyo has instituted a moratorium on commercial property developments such as malls and golf courses that would encroach on farmland. And she has pledged that authorities will arrest and punish anyone caught hoarding rice.

There was widespread publicity given to a police raid in Manila this month that uncovered a massive stockpile of rice and resulted in the arrest of 13 suspects caught guarding the bags.

Critics contend that hoarding remains endemic, carried out with the complicity of corrupt government officials and police.

Filipinos are also suspicious of Arroyo's plan to introduce ration cards for the poor next week. The cards are to be distributed through local politicians, who the government says are best placed to identify those in need. But many people see this as an invitation to further corruption.

"Ration cards might be a solution, but I don't trust the barangay officials to be fair and honest about it," Marlon Santos said, referring to neighbourhood politicians.

The 32-year-old says he eats bread for breakfast to help stretch his extended family's limited money.

Adjustments have been manageable for now, he says. Fewer snacks. No new T-shirts. But he doesn't rule out the possibility of unrest, or violence, if things get worse.

"Rice is something you need every day," Santos said. "When it gets to the point that families can't afford to buy two kilos a day, that's when people will get really mad." -