If donations don't arrive by April, the World Food Program will lessen its supply to 187,000 schoolers in conflict areas.

The impending rice crisis is going to hit children in Mindanao the hardest. 

This was the warning raised by World Food Program (WFP) country director Valerie Guarnieri, as costs for food purchases of the United Nations agency almost doubled because of the successive increases in rice prices. 

“The price increases are straining our budget,” Guarnieri told Newsbreak. “We may be able to reach less people as a result.” 

The UN-WFP is extending food assistance to about 1.1 million people in Mindanao as part of its “Food for Education” program in the war-torn island. Under the program, 187,000 children in Grades 1 to 6 are provided with 12.5 kilos of rice each month to encourage parents to send their children to school.

The intervention was initiated after studies showed that 40 percent of parents there cite lack of food as a contributing factor in not sending their children to school. The program covers 800 schools located in conflict-affected areas. 

Guarnieri said the WFP’s budget for food purchases (to include rice, corn, and cooking oil) now account for 60 percent of the agency’s total budget, from 45 percent last year. 

The WFP is suffering from a US$500-million gap in its budget for its worldwide operation as a result of skyrocketing prices of grains. If donations do not arrive by April, the agency would be forced to reduce food rations in countries where they operate.  

If the trend continues, the WFP may cut down on the number of beneficiaries for its “Food for Education” program, Guarnieri said. Based on the latest prices of rice, the WPF is spending $11 million for 23,000 metric tons of rice. With the same amount last year, the agency was able to purchase 40,000 metric tons of rice. 

Guarnieri has launched an emergency appeal to donor countries to pour in at least $500 million dollars by April, representing the budget gap caused by the spikes in prices of rice. If the money won't be forthcoming, she warned that the WFP would have to reduce its food rations because of rapidly increasing commodity prices. 

A crunch in rice supply and fears of shortage are putting pressure on the world market, hitting heavy rice importing countries like the Philippines. The Arroyo government has been allaying fears that the crisis could lead to rationing, but admitted that prices of commercial rice could further inflate. 
Average prices of rice have soared between P5 to P7 since the start of the year and there is no sign that prices are going to stabilize soon, as prices in the world market continue to soar. 

The skyrocketing price of the staple food could further hurt millions of Filipinos living below poverty line. 

Based on the 2006 Family Income and Expenditure Survey (FIES) conducted by the National Statistics Office, out of 90 million Filipinos, 68 million live on or under P80 ($2) a day. The same survey shows that for every P100 earnings, P41.40 or over a third goes for food expenses. The rest are spent on medicines, clothing, education expenses, and other bills.  

This story is part of Newsbreak's Mindanao Online Reporting Project funded by the Australian Embassy.

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