PITC backs method of rice importation
The Philippine International Trading Corporation defended its circuitous system of importing rice under farmers’ cooperatives, which is believed to be one of the causes of the high prices in rice in the market.
PITC managing director Mario Leygo said their system of importing rice has nothing to do with the soaring prices in the market. He explained that the present high prices are market-driven and have nothing to do with their circuitous system.
PITC, an attached agency to the Department of Trade and Industry, was created under the Executive Order 649 and has served as the government’s importation arm.
Leygo said like other government owned and controlled corporations, they do not have budget from the government and are operating on their own income.
Under the government rice importation program, farmers’ cooperatives that are licensed with the National Food Authority will get their import allocations from PITC. The cooperative, after obtaining their allocations, will find financiers to buy their allocations and subsequently make the importation themselves.
As soon as the cooperatives will have a financier, they will again go back to PITC, which will do the importation for them for a fee. The PITC will collect a service charge depending on the volume of the import allocation.
The cooperatives will also collect a commission from the financier for getting the import allocation for them.
One of the rice importers in
This circuitous system has obviously contributed to the high prices of rice in the market because rice importers will naturally pass on the additional cost to the consumers.
Despite this observation, Leygo said the high prices in the market are largely caused by the high cost in production.
Prices of rice in the market have gone up for the past weeks following the reported scarcity of supply. In fact, well-milled rice that used to be sold at less than P30 per kilo is now being sold at more than P30. — Fred P. Languido/LPM
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