Rice traders, NFA vow no repeat of 2008 crisis

BOCAUE, Bulacan, Philippines – Officials of the National Food Authority (NFA) and rice traders assured the public yesterday that the rice crisis that hit the country two years ago will not be repeated this year.

Traders attributed the recent increase in rice prices to the hike in the price of palay.

Eloisa Santos, an economist of the NFA-Bulacan office, told The STAR that the increase in rice prices is temporary because the next harvest is only two months away, and an increase in supply will bring down prices.

“Rice prices remain stable despite the 10 percent increase among traders,” said Santos, adding that consumers in Bulacan have not felt the price hike as local retailers are still selling rice they acquired last year.

She said that there would be no rice crisis this year similar to the shortage in 2008, as she claimed that farmers will harvest their crop in March and the NFA had also imported rice.

Victor del Rosario of the Intercity Rice Millers Association (IRMA) said more rice is expected with the coming harvest and arrival of the imported grains.

Del Rosario said that perceived shortage of rice was induced by large purchases made by companies late last year that were distributed to their employees as Christmas bonus, as well as grain supplies donated to relief operations for the victims of typhoons “Ondoy” and “Pepeng.”

Del Rosario cited that both harvested and unharvested palay were damaged during the typhoons last year.

“Typhoons reduced the supply, but there was harvest in December and again in March and April,” he said. Malene Sangguyo, administrator of the Gold Rush Rice Mill at the Intercity Industrial Estate here, said one of the reasons for the rice price hike is the shortage of supply.

Records from the NFA-Bulacan showed that there are at least 100 rice mills operating almost 24 hours a day within the industrial estate.

She said that they started to feel the reduction of rice supply before Christmas last year.

“Aside from crops being damaged, our stocks were also destroyed when they were submerged in flood,” Sangguyo said.