RICE INDUSTRY STAKEHOLDERS SAY
SUPPLY, PRICES TO STABILIZE IN Q4
By Manny Piñol
Rice industry stakeholders yesterday said the unusually high prices of rice in the market will taper off and stabilize in the 4th Quarter when farmers will start to harvest their last cropping for the year and rice stocks imported by the private sector have been completely brought in by the end of September.
It is, in fact, feared that the delayed arrival of imported rice, which was supposed to come in during the months of June, July and August, will further pull down the prices of palay from the current historic high of up to P29 per kilo for clean and dry grains back to about P20.
Industry stakeholders also belied an earlier claim made by some groups that the rice supply in the country was only good for five days.
“That is totally untrue as we have continuously delivered rice to Metro Manila and our warehouses still have sufficient stocks,” said a rice miller from Isabela.
In a dialogue which I called yesterday to implement President Rody Duterte’s directive to determine the actual rice supply situation and the cause of the increase of prices in the market, the rice retailers said that prices started to go up when the Natioal Food Authority’s subsidized rice sold at P27 and P32 disappeared in the market.
“When that happened, prices of commercial rice immediately went up as a result of speculation,” James Magbanua, president of the Grains Retailers Confederation (GRECON) said yesterday.
As the prices of rice went up, local traders started a massive buying spree of whatever rice production the farmers had which resulted in the farmgate prices soaring to unprecedented levels of up to P29 per kilo.
NFA Administrator Jason Aquino said that the first shipment of 250,000 metric tons of NFA rice has already arrived in the country and the next 250,000 metric tons would start arriving soon.
Rice imported by the privarte sector has also started arriving and several vessels laden with rice from Vietnam, Thailand and Pakistan are currently waiting for their turn to unload at the congested Port of Manila.
Importers yesterday welcomed my suggestion that one of the recommendations to be made as a result of the dialogue would be the prioritization of the unloading of rice stocks and other food commodities arriving at the Port of Manila.
They said the delay in the unloading has resulted in the refusal of many shipping companies to load their rice stocks for shipment to Manila and the payment of fines for demorhage at the port resulting in added expense.
The farmers, on the other hand, said yesterday that they are now enjoying the highest buying price for their produce for the first time in their lives.
They, however, expressed fears that the arrival of imported rice during peak harvest season would affect the buying price of palay.
The farmers asked that the policy announced by President Duterte to time the arrival of the imported rice during the lean months, not during the harvest season, should be implemented by the NFA.
Rice traders who attended yesterday’s dialogue denied that they were hoarding stocks in their warehouses claiming that with the current high prices of rice in the market, it was unwise for them to keep their stocks.
“Mataas po ang presyo ngayon kaya walang dahilan na itago namin ang mga bigas kasi pagdating ng tag-ani at ng mga bagong imported na bigas, babagsak na ang presyo,” they said.
I, however, emphasized to them the appeal of President Duterte for rice industry stakeholders to ensure stable supply of rice at fair prices.
They were also warned of the still penalties and prison terms, including the confiscation of their stocks, if they are caught hoarding rice in their warehouses.
(Photos of yesterday’s dialogue with the rice industry stakeholders taken by Patch Sulaik, Office of the Secretary.)
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