MANILA (UCAN): “Based on our data, the total projected demand of rice is 14.5 million metric tons and the actual rice to be consumed by our population is nearly 13 million metric tons. If the amount of exported rice dramatically exceeds that amount, the logical assumption is that they’re kept by hoarders,” Raul Montemayor, the national manager of the Federation of Free Farmers, said.
He called on the Philippine government to remain vigilant against the hoarding of and profiteering from rice as climatologists warned that a prolonged dry season could negatively impact crop harvest.
The Philippine Atmospheric, Geophysical and Astronomical Services Administration warned that the El Niño phenomenon will persist until September.
El Niño increases the likelihood of below-normal rainfall as well as dry spells and droughts and negatively impacts the production of crops.
Montemayor expressed concerns that the dry season may not only be the reason for the skyrocketing price of rice in the coming months, noting that even if the government imports enough rice to cover for loss of rice yields, the price might go up due to hoarding by unscrupulous traders.
The impact could be similar if we have calamities like typhoons as it could affect rice production … we need to increase our buffer stock, we could import rice if there’s a shortage
Rex Estoperez
However Ferdinand Marcos, Jr., the country’s president, assured people the price of rice would be under control and monitored.
“Again, I want to assure our fellow citizens that … we are looking at different ways to control the price so that it wouldn’t increase that much,” Marcos said during an April 17 press conference. He said the government is determined to stock enough rice to feed the country’s estimated 113 million people.
Marcos, who heads the nation’s Agriculture Department, claimed he was ready to import rice should the dry season result in a poor harvest.
Assistant agriculture secretary, Rex Estoperez, claimed that the effects of El Niño are just like “any other” calamity like the typhoons that frequently hit the archipelago.
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“The impact could be similar if we have calamities like typhoons as it could affect rice production … we need to increase our buffer stock, we could import rice if there’s a shortage,” Estoperez told reporters on April 18.
The official also said that rice production from 2022 to 2023 would remain the same at 12.5 million tons, citing the Foreign Agricultural Service of the US Department of Agriculture.
The agency forecast rice imports would still reach up to 2.8 million tons, or 200,000 tons lower than in in the period from 2021 to 2022.
We have some 10 farmers who know about the cartel and politicians are involved in it. But they want to keep silent due to safety reasons
James Arasco
Government data shows rice prices were already rising due to inflation.
The cheapest variety of rice now sells at 36 to 44 pesos [$4.96 to $6.06] per kilogramme, up from 35 to 38 pesos at the start of the year, Reuters reported on April 14.
Chairperson of the farmer’s federation Bulacan branch, Christopher Maligalig, alleged that rice traders have already begun hoarding so they can control the market price.
“We know tons of rice are already being stocked in warehouses for this purpose,” he said. He claimed their group has a list of warehouses in the northern Philippines belonging to suspected rice hoarders.
“We know because we have men on the ground and they were asked to look for men to put hundreds of sacks of rice in secret warehouses,” Maligalig said.
Farmers say speaking about the rice cartel is unsafe in the Philippines.
“We have some 10 farmers who know about the cartel and politicians are involved in it. But they want to keep silent due to safety reasons” James Arasco, who is from the Bicol region.
Arasco said their local produce was being bought by a local businessman who they later found out has been hoarding rice from all over the region.
“We don’t complain because at least we have an outlet. We cannot compete with the rice from Vietnam and Thailand. At least someone buys our rice,” he added.
Ryan Pingol, a lawyer, said the hoarding of agricultural products such as rice is a crime under Philippine law.
“Those found to be in violation of rice/corn hoarding and profiteering shall suffer the penalty of 20 years imprisonment and a fine of five million pesos,” Pingol said.
Caritas Philippines, has started a rice mobilisation programme for the poor should a crisis hit in the next few months.
“We have bought good quality rice for its best price. For now, we are just going to keep it so that we can give it to the poor if the rice shortage predictions come true,” Caritas chief, Bishop Jose Colin Bagaforo of Kidapawan, said.
