Rice is our staple food. The continued increase in the price of rice is causing anxiety on everyone, particularly those in the poverty line, including rice retailers. Who is to blame? Without naming names, President Ferdinand Marcos Jr. pointed the finger at rice hoarders and smugglers as the cause of the scarcity of the rice supply that resulted in the sudden increase in price.
In a speech before leaving for Indonesia for the Asean (Association of Southeast Asian Nations) Summit, President Marcos said: “Sa lahat ng pag-aaral ng Department of Agriculture (DA) at lahat ng ibang ahensya ng pamahalaan, hindi namin makita ang magagandang dahilan kung bakit tataas ang presyo ng bigas. Sa pag-aaral namin, ang dahilan lamang dito ay talagang nandiyan ang mga smuggler atsaka mga hoarder.” (CNN)
(In all the studies of the Department of Agriculture and other government agencies, we cannot see good reasons why the price of rice will increase. In our study, the only reason for this is that there are smugglers and hoarders.)
The problem of rice hoarding and smuggling is not new. All the past administrations have experienced the same problem that put us (except the rich and mighty) at the mercy of the hoarders and smugglers not only of rice, but of all other basic commodities. This problem has even remained unsolved even if the DA is under the President.
The President’s sound bites that he would go after rice hoarders and smugglers and the confiscated rice would be sold to the public at low prices are not amusing. In so doing, is not the President giving the hoarders and smugglers ample time to hide what they have hoarded?
Hoarders and smugglers belong to the high and mighty in our society. They have connections in government agencies that would lead to the question: Have any of the alleged hoarders and smugglers been charged and made to pay for their crime to humanity, who have suffered a lot from the soaring prices of basic commodities of which they are manipulating?
This is not in defense of rice retailers. But the imposed price cap on regular and well-milled rice places retailers at the losing end since the retail price, according to them, is not much considering that the price of the rice from their suppliers is already high. Can’t the Department of Trade and Industry (DTI) and the DA control the price of rice at the suppliers’ end?
Common sense would tell us that the price of rice is dictated by the suppliers and the retailers. And the hoarders made the supply of rice scarce so they could dictate and increase the price at will. The smugglers and hoarders have outsmarted all the administrations.
On the other hand, the National Grains Authority, now the National Food Authority (NFA), was established in order to stabilize the production and supply of rice. Yet, in the face of this current problem this agency has become useless. In past administrations, the NFA was even involved in controversies in relation to the importation of rice.
The DA’s monitoring of the price of rice per kilo in the market in Metro Manila, as of Aug. 30, 2023, showed that local well-milled rice costs up to P56 and the imported rice is sold at P52. The local regular milled rice is sold for up to P55, but the imported regular milled rice is sold for up to P43.
Executive Secretary Lucas Bersamin signed Executive Order 39 on Aug. 31 that states President Marcos approved the joint recommendation of the DTI and the DA to set price ceilings on regular rice, which now stands at P41 per kilo, and well-milled rice, which now stands at P45. The EO, which took effect on Tuesday, Sept. 5, could provide the public a reprieve from high prices, but to the consternation of rice retailers.