Collusion, monopoly: Lawmakers question high rice prices

Metro Manila, Philippines — Lawmakers raised the possibility of undue market control as a reason for high rice prices amid declining cost of the staple in the world market.

Officials said rice supply is enough while the landed cost of the imported produce has declined, but rice remains unaffordable to the average consumer.

During the House quinta-committee on Tuesday, Dec. 10, National Economic and Development Authority Director Nieva Natural said rice landed cost is now at ₱33 per kilogram (kg), lower by ₱7.

Natural and Rachel Lacsa from the Philippine Statistics Authority told lawmakers that rice supply is enough to meet demand.

Retail price ranges from ₱50 to ₱60 per kg, which is unaffordable to ordinary consumers, a lawmaker said.

“Klarong-klaro po na sinabi ng lahat ng ahensya na hindi ramdam or hindi naaabot ni Maria at Juan ang pagbaba ng presyo ng bigas. Klarong-klaro po na pati 'yung ating Filipino farmers at rice, palay farmers ay nadedehado na rin,” Iloilo 1st District Rep. Janette Garin said.

[Translation: It is clear, from what the agencies said, that the lowering of rice prices is not felt by Marias and Juans. It is clear that our rice farmers are on the losing end.]

Marikina 2nd District Rep. Stella Quimbo raised a possible collusion to manipulate prices.

“Kailangan na talagang pakawalan ng rice traders ang rice stocks du'n sa warehouses nang sa ganu'n bumaba na ang presyo. In other words, nasa kamay na ng importers at traders na yumaman po ng ₱13 billion. 'Yun 'yung kinita nila dahil bumaba ang taripa by 15 percent,” said Quimbo.

[Translation: Rice traders should release their stocks in warehouses so that the price will go down. In other words, it is in the hands of importers and traders who became rich by ₱13 billion. That is their profit because the tariff has been cut to 15 percent.]

ACT-CIS Rep. Erwin Tulfo went further to call it a monopoly.

“Mino-monopolize ‘yung presyo natin kaya ganu’n kataas… sobra-sobrang patong nila,” Tulfo told reporters on the sidelines of the hearing.

[Translation: They are monopolizing the prices. Their markup is too much.]

The quinta-committee will be having closed-door meeting with agriculture officials on Dec. 11.