Consumers see no respite from higher prices of rice

LUCENA CITY, Philippines—Consumers in this city are anticipating higher rice prices even during the holidays as the debate over whether or not supply is sufficient took a twist with the justice department ordering an investigation of allegations that a recent importation of rice by the National Food Authority (NFA) is overpriced.

“Christmas is getting near and the rice problem still persists,” said Mario Pineda, a construction worker, in an interview at the public market here.

He said if rice prices remain high, “prices of other basic goods automatically follow.”

Pineda called the government’s rice sufficiency program “another politician’s empty promise.”

In a memorandum dated Oct. 12, Justice Secretary Leila de Lima ordered the forming of a “special team to investigate and examine the rice importation scheme of the NFA” in connection with allegations, made by lawyer Argee Guevarra, that the imported rice from Vietnam was overpriced by at least P400 million.

Guevarra’s allegations are now also being investigated by the House of Representatives.

Another consumer in this city, Maridel Reyes, also expressed skepticism about the government’s rice sufficiency program in the midst of the debate over importation.

“If rice self-sufficiency means high costs, I would prefer cheap imported rice,” said Reyes, after buying 5 kilograms of dinorado rice for P46 per kg.

Reyes recalled that dinorado cost only P42 per kg early this year.

“The government’s rice self-sufficiency target is punishing consumers,” said Reyes.

The investigation ordered by the justice department was prompted by a letter from Guevarra to the department alleging that the 205,700 metric tons of rice imported by the NFA in April 2013 is overpriced by at least P400 million.

In her memo, De Lima quoted Guevarra’s letter as saying the importation of rice “may be a continuation of the profiteering scams which started during the Arroyo administration.”

In a statement, Guevarra had asked members of the NFA Council to guard against attempts to push for another government-to-government transaction to import rice.

“If council members are not careful, they may be dragged into this mess,” warned Guevarra.