HIROSHIMA – The increase in prices of basic commodities, particularly rice, does not affect a majority of the people, President Aquino said last Tuesday.
He said he was informed during a recent meeting of concerned agencies, including the National Food Authority (NFA) and Department of Agriculture, that the spike in rice prices, at an average of P2 per kilo, is only for well-milled rice.
“I guess it is not the vast majority that is getting affected,†he told reporters Tuesday afternoon on board a chartered Philippine Airlines flight from Tokyo.
“It is the well-milled that has had this very significant spike. The low-end rice – I was briefed – had not that much increase in price,†he added.
He said the NFA has also doubled its supply to prevent undue upward movement and panic buying that will induce further price spikes.
He said the government imported 80,000 metric tons of rice to boost buffer stock this month and next month, which are considered lean months.
Aquino said he would call another Cabinet cluster meeting to address concerns about price increases. “We need definitive answers,†he said.
“There will be a meeting, perhaps this week – if not, at the latest, by next week – we will check especially rice but also garlic to determine exactly what is causing these price spikes,†he said.
Rotting rice
Meanwhile, some 50,000 bags of rice imported from Vietnam were found rotting at a warehouse in Bangar, La Union and around 16,000 bags were left at a ship docked at the Poro Point seaport in Pangasinan.
Frederick Dulay, NFA information officer, told The STAR the 16,000 bags were part of the NFA importation but was returned to its contractor after it was soaked with seawater when the cargo ship carrying it ran aground along a marine protected area in Barangay Lingsat in December last year.
“The rice was not yet owned by NFA. We gave it back to the contractor after it was drenched. We just helped them to look for a warehouse because it was already unloaded at the pier. The rice is already unfit for human and animal consumption but it can be converted for industrial use,†he said.
The NFA imported 400,000 bags of rice last year for Region 1 to serve as buffer supply from June to September.
Dulay said another 1.4 million bags of Vietnam rice for Region 1 would arrive this weekend.
House probe
The House committees on agriculture and food security chaired by Reps. Mark Llandro Mendoza and Agapito Guanlao, respectively, started hearings yesterday on various resolutions on rising prices of basic commodities.
Among the resolutions was one filed by Kabataan party-list Rep. Terry Ridon, who asked the committees to investigate the sudden spike in the price of garlic in several areas and assess the status of the garlic industry.
The National Garlic Action Team (NGAT) – a special action team formed by the DA to investigate the surge in garlic prices – said lower supply of imported garlic and the high demand for local garlic could have contributed to the sudden rise in garlic prices.
The DA team said they are also investigating the possible existence of an “artificial shortage†caused by hoarding of supplies by garlic traders.
Ridon said the DA should strengthen the local garlic industry rather than resort to increased imports.
“While increasing garlic imports may ease prices in the short term, I believe that this move will be insufficient to keep garlic prices stable in the long run,†he said.
Price manipulation
As this developed, Sen. Paolo Benigno Aquino IV called on the administration to conduct an investigation into the sudden increase in the price of garlic and other agricultural products, adding those involved in price manipulation should be held liable.
“We must further intensify support to our garlic farmers to meet the country’s demand at an affordable price for consumers,†he said.
“Let us not allow the interest of abusive personalities or groups to inflict further burden on our farmers and take away the hard-earned money of consuming public,†he added.
What rice, garlic sufficiency?
Bayan Muna Rep. Neri Colmenares accused Agriculture Secretary Proceso Alcala of misleading the President and the public when he announced months ago that the nation has attained rice self-sufficiency.
He said Alcala also misled the public when he publicly declared in June 2012 that the country is self-sufficient in garlic and declared that there would no longer be any garlic importation.
“Now high garlic prices have forced him to admit that we continue to import garlic,†he added.
He said continued rice importation by the NFA is proof that the nation is still short on the basic staple. He noted that the DA and the NFA recently imported 800,000 metric tons of rice.
He added that agriculture officials are aware of the lean season and should have anticipated it in their rice importation schedule.
Colmenares said rice traders would not jack up prices if they know that there is sufficient supply, including imports.
Overpriced?
He also urged the House of Representatives to look into reports that recent NFA imports totaling one million metric tons were overpriced by $34 per ton.
He said this could be the reason why the NFA has to sell imported rice at a high price to recover its high importation cost.
He said the only way the rice agency can offer a lower retail price to force market prices down is if it brought in imported rice at low cost.
Chicken prices
Rising prices of chicken in Metro Manila are temporary, caused by difficult growing conditions during the summer, Jose Inciong, president of the United Broiler Raisers Association, said yesterday.
He said the “hotter than usual temperature†that prevailed during the summer season slowed down the growth of chicken in farms.
Breeders have also been culling layers since October last year when farm gate prices of chicken fell to P45 per kilogram of live weight to recover losses.
Inciong said the poultry population in breeder farms during summer were produced from young flock, which cannot easily endure hot weather and tend to grow slower.
“Growing conditions during the summer were abnormal. It was difficult,†he said.
Inciong said the domestic poultry population is expected to recover in the coming months.
The domestic poultry sector produces about 700 million heads annually, which increases about four percent year-on-year.
Neglect of farmers
Meanwhile, a multi-agricultural industry alliance said neglect of the farming sector, smugglers, unscrupulous traders and pro-importation lobbyists are to blame for the increase in prices of basic agricultural commodities. – Delon Porcalla, Jess Diaz, Paolo Romero, Czeriza Valencia, Aurea Calica, Christina Mendez, Jun Elias, Eva Visperas