Rise in hunger incidence due to typhoons – NEDA

MANILA, Philippines – The National Economic and Development Authority (NEDA) yesterday attributed the rise in hunger incidence in the country to the impact of typhoons “Ondoy” and “Pepeng” and not to inflation.

NEDA director Dennis Arroyo said the rise in hunger was expected and already relayed to President Arroyo during a Cabinet meeting in October last year, following the two calamities.

The Social Weather Stations, in its fourth quarter survey, noted that hunger incidence rose to a record high 24 percent.

“In the past, hunger would correlate with inflation. But inflation was moderate in 2009 at 3.2 percent, compared to the 9.3 percent in 2008 when the country was hit by the global food and fuel crisis,” Arroyo said during a briefing at Malacañang.

He explained that the damage to crops and sea cages caused by the two powerful typhoons left many farmers and fishermen unemployed.

He pointed out that the lack of a source of livelihood forced them to tap their savings as well as those of their relatives.

“So the spike in hunger was not immediate but delayed by months. Worse, crop and fishery damage pushed up prices of the items most important for the bottom poor: vegetables, fish, etc.”

Arroyo noted that inflation was high for these food items that are valued by the poor.

The impact of the typhoons on the country was actually more serious than what was generally known to the public, he said.

Citing a World Bank report, Arroyo noted that Ondoy alone pushed an estimated 150,000 to 250,000 near-poor families into poverty, resulting in the rise in national poverty incidence by 0.1 to 0.3 percentage points.

To address hunger more effectively, Arroyo said the government must expand its existing pro-poor and anti-hunger programs.

He said more funds should be re-channeled to the 4Ps or Pantawid Pamilyang Pilipino Program of the administration to widen its coverage.

The Department of Social Welfare and Development, acting on the instructions of the President, has already increased the coverage of the 4Ps from 700,000 to one million poor households.

Arroyo urged the government to accelerate countryside recovery in the aftermath of the typhoons and help more non-rice farmers hike their production.

The same goes for fishermen who should be supported with capital for boats, equipment and sea cages, he said.

Arroyo also stressed the need to ensure the stable supply of two basic commodities – sugar and liquefied petroleum gas.

LPG and sugar prices have steadily gone up and have remained high in spite of assurances by concerned government agencies that steps are being taken to address the problem.

Arroyo said the government should not hesitate to import sugar if this is the cheaper option under current trading conditions to close shortfalls.

The Sugar Regulatory Administration has endorsed the duty-free importation of around 60,000 to 150,000 tons of raw sugar to boost domestic supply and ease rising prices.   – Marvin Sy, Philippine Star