NFA Must Buy @P22/kg.! Rice Cartel Hostages Govt., Palay Price Drops P18/kg.

The powerful and rich Rice Cartel which now controls the Philippine Rice Industry following the implementation of the Rice Tariffication Law, has openly defied the Government’s move to tame runaway rice prices by “ordering” its national network of traders to drop the buying price of paddy rice from a high of P25/kg. last week to only P18 yesterday.
The drastic drop of the buying price of unmilled rice defies the universal value conversion of paddy rice to milled rice which is “Farm gate price multiplied by two should be the selling price milled rice.”
Inversely, since the price caps implemented by government at P41/kg. for regular milled rice and P45/kg. for well-milled rice, the fair farm gate price of palay should be no less than P22/kg.
The drop in farm gate prices resulted in mass uproar among rice farmers who expected to recover from previous losses from the high prices because of the worldwide rice shortage.
This is the scenario which the Rice Cartel would like to happen – agitate the rice farming sector by buying at levels which are even lower than the world market prices.
Now, while consumers are relieved because of the price caps, the farmers are complaining because farm gate prices dropped.
Government must fight back and show its might.
I support the idea of a price cap as an immediate measure to control runaway prices. We did it to address the artificial rice shortage in 2018 right after the National Food Authority was returned to the Department of Agriculture as an attached agency..
In the case of Executive Order 39 issued by President Marcos on Aug. 31 which placed caps on the selling price of milled rice, there were two missing elements which could have made it acceptable to all those involved in the industry.
First, there should have been a prior consultation with the retailers who get their supplies from traders to set a timetable for the implementation of the price cap para yong nabili ng mga retailers na bigas from the wholesalers sa mataas na presyo at maibenta muna.
Second, the National Food Authority should have been provided with sufficient funds to buy farmers’ produce because expected talaga na magre-react ang Rice Cartel and oppose the price cap by not buying locally produced paddy rice.
With the P41 and P45 price caps for regular and well-milled rice, dapat ang bilihan ng palay should be no less than P22/kilo but this is the Rice Cartel at play and government could not do anything because wala nang regulatory and supervisory powers ang gobyerno over the rice industry dahil tinanggal ito ng Rice Tariffication Law.
What government should do now is to provide funds to the NFA including the P17-B Rice Competitiveness Enhancement Fund (RCEF), to buy palay at P22/kilo to stabilize the price.
The milled rice could then be supplied to other government agencies like the Dept. of Social Welfare Development for distribution to the poorest of the poor under the Rice Supply program for 4Ps beneficiaries.
This is the only option left for government because the RTL says ang papel ng NFA ay buffer stocking lang, a perfect proof of how the brainless RTL made a mess of the rice industry.
Finally, to sort out the problems on the long-term, President Marcos must crack the whip and direct his allies in the Senate to work for the amendment of the Rice Tariffication Law.
Rice is an existential commodity for Filipinos at hindi dapat hayaan ang Rice Cartel na paglaruan ang supply at presyo nito sa merkado.
Pagkain ng masang Pilipino ang pinag-uusapan dito.
#GovtMustShowTeeth!
#KungGustoMaramingParaan!
(Photos were downloaded from public websites.ctto)