In the past few months, riots and protests over soaring food prices have broken out in Europe, Asia, Africa and Central America. In Haiti, the Prime Minister was ousted after more than a week of rioting due to rising cost of rice, beans, cooking oil and other staple foods. The unrest resulted to several deaths and spread to the capital Port-au-Prince where mobs took over the streets, looted shops and burned cars.

Back at home the situation is a lot less volatile (at least for now) but the gravity of the problem of surging food costs is still very apparent. You see it almost everyday, on TV and in the newspapers, long queues of our poor kababayans enduring the sweltering heat for hours just to buy a few kilos of government rice from distribution centers. A more sorry sight is people going home empty handed because rice stocks have run out.

In recent weeks the government has heightened their crackdown on rice hoarders and traders who repackage NFA rice and sell it at a higher price. New distribution schemes are also being implemented to ensure that cheap rice will get to the poor families and out of the hands of accursed rice traders. While these measures may prevent the situation from deteriorating, it probably won’t stop prices from further escalating.

Rice producing countries like China, India and Vietnam have imposed limits on their exports to contain surging domestic prices and ensure their sufficiency. This results to higher global prices of rice that hits hard on rice importers, most especially the Philippines, which has become the world’s biggest importer of rice. (Such a shame considering that we are an agricultural country).

The benchmark price of rice in the world market has tripled since the start of 2007. So far this year the price has increased by 120%. In the latest government tender to import rice, the bids offered ranged from $872 to $1,220 per metric ton; last January the average price was only $474 per ton. A price of $1,000 per ton translates to about P48 per kilo with zero taxes; locally, the government is buying palay P17 per kilo. So, selling rice at P18.25 is not good economics but it’s necessary to stave off widespread hunger and possible violent social unrest. However, prices will have to be adjusted eventually.

It’s not just the cost of rice that has increased in the past few months. The prices of most basic goods, especially food, have also risen; inflation rate soared 6.4% in March, a 21-month high. And there’s no relief in sight against the continued surge in food costs; some analysts believe that inflation could reach 8% this year. Oil has also hit an all-time high of $119 per barrel. The effects of the continued rise in oil prices will eventually trickle down to the consumers in the form of higher prices of goods and services.

In the light of all these, the government can only do so much to curb rising food costs. While authorities try to find ways to control prices and mitigate its impact on the masses we should also do our share to survive in a time of high food costs. Since the working class will unlikely get a wage increase that can keep pace with the rise in prices (the BSP warned that too much increase in wages will lead to even high inflation), what else can be done? The answer would be to practice frugality.

What we are actually experiencing right now is not a food crisis but a food “price” crisis. There’s no shortage in the supply of food; commercial rice, although a lot pricier, as well as meat, fish and vegetable are widely available. What’s in short supply is money, which can no longer buy what it used to. High prices will not go away anytime soon so we will have to learn to live with it. Your best defense in times of high cost and limited income is to spend wisely.

Managing your expenses properly will allow you to buy more for your hard-earned money even without any increase in your income. Start by reducing or eliminating expenses that are not essential to your family’s survival. Here are some of things you can do without: smoking, high-priced coffee (stop paying for the experience), booze, expensive clothes & shoes, frequent night outs, gambling (illegal or legal), drugs, top of the line cellphones and gas-guzzling SUVs.

Examine your expenses and find ways to reduce them. Always compare prices and find cheaper alternatives; when money is in short supply, you can’t be too choosy. By spending your money wisely, you can free up hundreds, if not thousands, of pesos every month which you can use to buy the things that really matter like food, shelter and education. Frugality will also allow you to regularly set aside a little for your savings even on a tight income. A healthy level of savings will be your lifeline during a real crisis.

Filipinos spend more than 50% of their income on food consumption; hence, this is one area where you may realize substantial savings by cutting down on waste and making smart food choices. For years I have been tinkering with the idea of starting a “clean plate” movement because I find it immoral that people to leave significant portions of food on their plates when millions are suffering from hunger, besides the fact that wasting food is akin to throwing away money. Perhaps the time has come for the movement to start rolling.

The “clean plate” movement calls for individual action to limit food waste. Specifically, it calls for “clean plate” advocates to commit to these few action steps:

1. No leftovers. When dining out, take home what’s left for later consumption or share with other people. At home, get creative with leftovers instead of throwing it away.
2. Order or take only what you can easily consume in one sitting; share large servings of food
3. Do not allow food to spoil; consume or give it away before it does.

If you want to be a “clean plate” advocate send me an email with your full name and other contact details so you can be included in the official list. I will make the list accessible for viewing by the general public so that your decision to take action is recognized. I also encourage you to ask your relatives, friends and colleagues to follow the few simple steps to cut down food waste and save money in the process.

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Click here to register as an advocate of the Clean Plate Movement or send your name and present location (city/province & country) to cleanplate@pinoysmartsavers.com.

Posted: May 12, 2008
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