IMPORTED 1ST CLASS RICE
PUSHES UP MARKET PRICE
By Manny Piñol
A day after President Rody Duterte transferred the National Food Authority (NFA) back to the Department of Agriculture, I walked the rice section of the Commonwealth Market in Quezon City early this morning.
What I saw gave me a clear proof of the fundamental flaw in the government’s private sector rice importation program.
You see, there are two rice importation programs – one by the NFA and the other by the private sector.
The NFA imported rice classified as 25% Broken is aimed at stabilizing market prices by selling at P27 to P32 per kilo.
The private sector imported rice which is First Class Rice or 5% Broken is supposed to fill up the national production shortfall of 7%.
It is also supposed the bring down the price of rice in the market.
In fact, some of our government economists said importing rice in huge volume will bring down the price of rice by P7 per kilo.
I honestly don’t know how they came up with that number which they inserted in the last SONA of President Duterte.
In spite of the fact that almost 700,000 metric tons of rice imported by the private sector have arrived in the country, the prices in Commonwealth Market yesterday was still over P50 per kilo for imported rice.
Imported rice is not bringing down the prices of rice.
In fact, imported rice which is basically fancy rice like Jasmine and Long Grains, is setting the high level of prices.
Allowing the private sector to import First Class or Fancy Rice does not and will not bring down the prices of commercial rice in the market.
So, why do we allow the private sector to bring in Fancy Rice when it does not really help in bringing down prices.
Only the importers and the traders are making money here.
This practice of importing Fancy Rice does not help the consumers in any way.
On Monday, during the first NFA Council meeting which I will chair, I will take this up with the Council members.
I will propose that starting next year, the private sector should import the same quality of rice that the NFA is bringin in – 25% Broken.
This should be sold in the market at less than P40 per kilo.
If the market demands for First Class and Fancy Rice, let the Filipino farmers produce it.
The Filipino farmers could produce Dinorado, Jasponica, RC160 and even Jasmine Rice.
This anomaly has to end now!
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