Rice not in crisis but cartelized
By Ed Sestoso
Negros Oriental 3rd District Rep. Henry Teves said that the present rice situation cannot be considered in crisis or having a shortage, but cartelized in the national level.
The lawmaker issued the statement several days after mounting complaints had already filed up in several concerned government offices throughout the province.
The solon categorically stated that contray to what he called as media hype on rice crisis and shortage, the actual situation contradicted it.
He said that there is no problem on the rice supply and that there are a lot of stocks that is enough to feed the populace of the province.
The solon explained that the line up of people in the distribution centers in the different outlets of the government’s National Food Authority (NFA) was due to the fact that many of the people who were once consuming commercial rice are now shifting to NFA procured rice.
The solon blames the rising cost of farm inputs including fertilizers and pesticides and of the petroleum products that contributed to the high cost of commercial rice in the market.
He said that aside from this problem, there are big four rice traders based in Manila who are cartelizing the rice distribution throughout the country, thereby giving them the power to dictate the price of rice aside from other factors.
He also said that even the global rice exporting countries Vietnam , Thailand and India are grouping together and having a worldwide cartel that also controls and dictates the price of rice throughout the country that even the government’s procurement system is slightly affected.
The solon said that situation should serve as a challenge to the Filipino people and the government to produce more as we move to lessen on the dependency on imported rice which the country is still presently doing.
The solon said that they are recently discussing the same in Congress, but he said even in the local front, there is no crisis.
He observed that farmers even from Zamboanguita, Siaton and the rest of the producing towns are harvesting rice and even continually doing the planting for the next harvest.
He also predicted that the lowering of the price of the commercial rice in the coming months as big national traders hoarding rice will just take it on their bodegas for a maximum period of three months.
He said it will be illogical for the hoarders to hold it beyond three months as the rice will just be rotten and they will eventually lost in the investments.
So, the hoarders, businessmen as they are have some limits and will be forced to release the rice stocks after a few months, thus with lots of supply, bringing the price to a much lower rate.
So he said that’s why the government countered it by buying a lot of rice and have NFA sell it, until such time this hoarders will be able to release their own rice stocks to flood again the market.
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Sat May 10, 2008 2:49 am