Rice price hike blamed on cartels

MANILA, Philippines - A farmers group yesterday accused rice cartels of hoarding to create an artificial shortage of palay in order to justify another rice importation and price hike.

The Kilusang Magbubukid ng Pilipinas made the allegations following reports that rice millers at the Intercity, the largest warehouse and rice mill reportedly controlled by rice cartels in Central Luzon, is shutting down purportedly due to palay shortage and high price of palay particularly those coming from the provinces of Pangasinan, Nueva Ecija, Isabela, and Cagayan.

“There is no truth behind reports that there is a shortage in the supply of palay,” said KMP secretary general Antonio Flores.

Flores said this palay shortage is artificial, a creation of rice cartels to justify massive rice importation and increase rice prices.

“There is abundant harvest in the last cropping and even the effects of the calamity in the current harvest season is insignificant to affect supply,” he said.

The KMP reported that in the provinces of Isabela and Pangasinan, the buying price of traders for newly harvested or wet palay is P16 to P17 per kilo while for dry palay is P20 to P22 per kilo. In Bulacan, the price of dry palay   P24 per kilo. – Rhodina Villanueva, Ding Cervantes