MANILA, Philippines — A lawmaker yesterday urged the National Food Authority (NFA) to regulate rice prices to keep them low and affordable for the poor and prevent greedy traders from engaging in profiteering.
The NFA, according to Camarines Sur Rep. Luis Raymund Villafuerte, should consider imposing a price ceiling if retail prices go up unreasonably.
“In the same way that there exists regulatory control on the cost of electricity, there should be regulatory control on the price of rice to prevent the profiteering schemes of unscrupulous traders from upsetting the supply of the staple in the domestic market,” he said.
Villafuerte also urged the NFA to stop the practice of allowing private traders to import rice.
“We need to fix the existing system to shield both farmers and consumers from the shady practices of private traders that have left the NFA helpless in carrying out its primary task of ensuring the stability of the price and supply of rice in the market,” he said.
“Clearly, the present setup doesn’t work, as greedy grains traders have managed to game the system by cornering domestic supply through imports and heavy purchases of locally produced stocks and, in the process, managing to influence and dictate retail prices through a seemingly ‘artificial’ supply deficit,” he said.
Under the current system, the NFA has the sole authority to import rice, but the NFA council chaired by Cabinet Secretary Leoncio Evasco Jr. allows private traders to similarly purchase stocks from abroad through the NFA, according to Villafuerte.
The NFA council should do away with private importation as this “obviously does not work in the face of the recent price spike in the retail market, which could apparently be traced to the hoarding done by unscrupulous businessmen that has created an artificial supply shortfall,” he said.
Villafuerte pointed out that at the current palay (unmilled rice) buying price of P20 per kilo, rice should be sold at around P40 per kilo only.
“But right now, you can see that regular-milled commercial rice sells for around P43 to P50 in retail outlets,” he said.
The lawmaker added that traders and retailers have taken advantage of the perception of shortage created by some irresponsible NFA officials by increasing selling prices.
Resolutions filed by Villafuerte and other lawmakers have prompted the House committee on agriculture to open an inquiry this week on the country’s rice supply.
A report submitted by the NFA indicated that the country had stocks good for 71 days as of the first week of this month.
Piñol reiterates rice surplus
On the other hand, Agriculture Secretary Manny Piñol said there has been an excess supply of 2.7 million metric tons (MT) as of the end of 2017, which would be boosted by the first quarter harvest estimated at 3.1 million MT, for a projected total inventory of 5.8 million MT at the end of March.
“The nation will consume 2.8 million tons for the first three months, leaving us a surplus of three million tons after the first quarter. That would be the highest in recent years,” he said.
Lawmakers have castigated an NFA spokesperson for telling the public the agency’s supply was good for only two days without saying the bulk of the 71-day inventory was held by households and commercial establishments.
“We have a sufficient supply of rice,” Piñol said yesterday during the launch of TienDA sa mga Bayani with President Duterte at Camp Adriano Hernandez in Dingle, Iloilo following reports of the NFA that its inventory was running low.
“In fact, never in the history of this country that we had so much harvest just like last year.”
Records showed that farmers produced 19.28 million MT of palay in 2017. The data reflected an additional 1.65 million MT from the previous year’s 17.63 million MT.
Piñol said there was a misinterpretation of what the NFA earlier said.
“When the NFA said there was rice shortage, they were referring to the buffer stock,” he said.
“We are rice sufficient as of the moment,” he added, basing his statement on the rice sufficiency rate on a quarterly basis.
The problem, however, is the lean months when there is deficit supply, according to the agriculture chief.
“That’s why we need around 400,000 MT import every year,” Piñol said, adding he sees nothing wrong with importation as long as it is not done during harvest season. – With Jennifer Rendon