There is no rice shortage, the government insists, and an early harvest is expected to further boost supply. So why have rice prices steadily gone up for over a month now? The other day, thousands of people formed long lines at rice outlets at the Commonwealth Market in Quezon City after rumors spread that rice was being given away by the government.
Militant farmers’ groups say rice cartels are hoarding the staple to create an artificial shortage and kick up prices. The groups also claim that rice imported last April from Vietnam was overpriced by about P457 million.
Stories of price manipulation, hoarding, overpriced imports and other anomalies have beset the rice industry for many years. These are on top of corruption scandals involving lawmakers’ alleged skimming of public funds meant for fertilizer, seeds and other farming support. The fertilizer fund scam involving Jocelyn Bolante is still bogged down in the judicial system after nearly a decade. These days, interest in the scam has been revived amid the pork barrel scandal involving Janet Lim-Napoles, in which lawmakers reportedly funneled their “pork†allocations to agricultural and other projects through dubious non-government organizations.
Facing public ire, lawmakers are ready to give up their Priority Development Assistance Fund and agree to a dramatic clipping of their discretionary powers over the utilization of billions of pesos in taxpayers’ money. Several lawmakers in the pork barrel scam have been identified by witnesses against Napoles and in the special report prepared by the Commission on Audit.
Traders who hoard and manipulate prices of rice, however, have mostly remained unidentified. Some of them might have lost their supplies after their warehouses were raided by government authorities, but how many rice traders have gone to prison for unfair trade practices or smuggling? Until they are caught and penalized, they will continue to pose a threat to the stability of rice supplies.
If no one is caught but rice prices continue to increase even without significant movements in the world market, it will bolster claims that no one is manipulating supply and prices, and the country is truly running short of its staple. The government will need to do more if it wants to persuade consumers that there is no rice shortage.