‘Reduce middlemen in rice delivery to lower prices’

MANILA, Philippines — Retail prices of rice can go down to P43 per kilo if the government cuts the layers of middlemen before the commodity reaches the markets, farmers’ group Samahang Industriya ng Agrikultura (SINAG) said over the weekend.

SINAG executive director Jayson Cainglet said that typically after being milled, the rice will be sold to at least six middlemen such as wholesalers and biyaheros, before it reaches consumers.

Each of these layers adds P2 per kilo in the retail price of rice before consumers can buy the staple, he said.

“What we are saying is that the rice can be sold at P43 (per kilo) to P45 (per kilo) without lowering the tariff, if we can cut the layers within the rice industry so that many will benefit from the affordable rice,” Cainglet said.

He said that the National Food Authority can sell P43 per kilo of rice in the Kadiwa centers as it mills the palay and sells directly to the government-run pop-up stores.

Agriculture Secretary Francisco Tiu Laurel Jr. has said that the Kadiwa outlets started selling at a lower price of P43 per kilo in its various outlets as part of its Rice-for-All program.

Unlike the subsidized P29 program, which is aimed at vulnerable sectors like indigents and senior citizens, Rice-for-All is available to all consumers in larger volumes.

A total of 21 new Kadiwa stores opened this weekend across Metro Manila and in Laguna.

Based on monitoring of the DA in Manila markets, the local regular milled rice is sold as high as P50 per kilo; local well-milled rice, P55 per kilo; local premium rice, as high as P58 per kilo and local special rice, up to P65 per kilo.

Imported regular milled rice is sold as high as P48 per kilo; imported well-milled rice, as high as P55 per kilo; imported premium rice, P60 per kilo and imported special rice, up to P63 per kilo.