Solons say rice traders colluding to control prices after tariff cut

RICE IS LIFE / NOVEMBER 19, 2024
A rice vendor with “special rice” display, waits for customers at a rice stall in Marikina Public Market in Marikina City in this file photo taken on November 19, 2024. INQUIRER PHOTO / GRIG C. MONTEGRANDE

MANILA, Philippines — Rice importers and traders are reportedly “colluding” to manipulate rice prices even after reduced import tariffs and an oversupply of rice in the country, lawmakers claimed on Tuesday.

During the House of Representatives quinta comm, or the super committee on the pursuit of cheaper food hearing, Marikina City 2nd District Rep. Stella Quimbo and Iloilo First District Rep. Janette Garin aired their sentiments.

READ: 5-panel House probe pushed to tackle agri smuggling

Based on the Philippine Statistics Authority (PSA) data, Quimbo pointed out the disconnect between market conditions and prices. For instance, she noted that the rice dropped from 82.5 percent in 2023 to 69 percent this year.

“Nakita naman natin sa presentation ng PSA na klarong klaro naman na merong pagsasabwatan dahil nakita natin yung self sufficiency ratio yung demand over supply is less than one ibig sabihin non may excess supply ibig sabihin kung ano yung kailangan nating bigas is less than what is supplied,” the senior vice chair of the committee on appropriations said.

(We saw in the PSA presentation that it is clear that there is a conspiracy because we saw the self-sufficiency ratio. The demand over supply is less than one, which means there is no excess supply, which means what we need for rice is less than what is supplied.)

“May excess supply, kung merong excess supply ibig sabihin dapat bumaba yung presyo […] At kapag may excess supply, dapat bumaba ang presyo. Pero bakit hindi bumababa?” she further asked.

(There is excess supply; if there is excess supply, the price should go down […] But why doesn’t it go down?)

Government data also revealed that the country has an estimated 2.5 million metric tons of rice stock inventory, 25 percent higher than the figure from 2023.

The lawmaker said that importers and traders benefited about P13 billion from the reduced rice import tariffs. She further claimed that hoarding the stocks may have been the cause of the rice price increase.

“Nasa kamay ng importers at traders na yumaman po ng P13 billion dahil yun yung kinita nila dahil bumaba ng taripa. Pero wini-withhold nila ang rice stocks sa ngayon,” Quimbo said.

(It’s in the hands of importers and traders who got rich and earned P13 billion because the tariff was lowered. But they are withholding the rice stocks for now.)

For her part, Garin asked National Economic and Development Authority (Neda) director Nieva Natural if the rice prices worldwide decreased, to which the latter replied in the affirmative.

“Yung landed cost ibig sabihin yung presyo ng bigas per kilo na imported ay bumaba by P7 pesos or less per kilo that’s what you stated from P40 to P33,” Garin said.

(This means the price of rice per kilo that was imported dropped by P7 pesos or less per kilo that’s what you stated from P40 to P33.)

“P7.35 po, yes ma’am,” Natural answered.

Citing the Neda, Garin then pointed out that it seemed that the rice price worldwide has lessened but Filipinos, especially farmers, no longer feel the lowering prices.

“[T]ila nawala sa hangin, dahil sa posibilidad na walang kompetisyon or may pag-u-usap usap sa presyo at dagdag pa dito ang dagok sa ating mga farmers dahil napu-pwersa silang magbenta ng kanilang produckto pero ang kumikita ay ang malalaking negosyante,” she stressed.

(It seems to have disappeared into thin air, due to the possibility that there is no competition or there is a discussion on the price and in addition to this the blow to our farmers because they are forced to sell their products but the ones who make money are the big businessmen.)

Meanwhile, Quimbo demanded the effects of hoarding these rice stocks on Filipino families.

“Release the stocks of rice so the prices will go down. Do it for the sake of our people,” she demanded.