By Danilo P. Padua, PhD
For the last few days, local news was dominated by the 23rd FIBA Basketball World Cup fever that opened Aug. 25, at the Philippine arena in Bocaue, Bulacan. It simultaneously opened in Japan and Indonesia-the two countries being the other hosts of the global event.
I intended to write about the sporting event for this issue but I decided to focus instead on a rice drama that unfolded Aug 24, the day before the World Cup opening.
The spike of rice prices ranging from PhP38.00 to PhP62.00/kg not only in CAR but around the country, in the last few weeks appear to be a result of lack of supply in the local markets. Perhaps because of this, Bureau of Customs examiners conducted an inventory of the rice supply. Curiously, they started their inventory by “raiding” three bodegas in Bulacan and found them, maybe not to their surprise, hoarding more than 200,000 sacks of rice from abroad with an estimated worth of not less than PhP 500.0 million.
The raid was witnessed, among others, by some members of the House of Representatives led by Speaker Martin Romualdez.
Witnesses claimed that the stored rice in the bodegas were already there for about three months. Clearly, the reason for the sharp increase in rice prices is not due to scanty supply but it is due to hoarding which is prohibited by law. The consumers were inflicted an injury to their pocket, and an insult to their calm, peaceful demeanor by insensitive and greedy people.
“There is no shortage of rice supply”, said Speaker Romualdez after witnessing the hoard, as if to confirm the insensitivity of traders towards the less fortunate in life. When I was watching the video about the “raid”, I was expecting the Speaker to declare a war on hoarding , or at least indicated that more in depth investigation will be conducted. There was none.
Instead, he just sheepishly stated that traders should conduct their business properly, and pay their taxes dutifully. There were tell tale signs all over that the hoarded rice was probably smuggled. There was an intent to defraud as the rice in sacks with foreign markings were about to be repacked in sacks from local suppliers. Smuggling and business malpractice, in almost 100% probability, are staring at everybody but all the Speaker uttered were tame reminders of proper business conduct. What’s the use of the laws that Congress had crafted?
Is it possible that the three bodegas raided were just holding relatively smaller volume of rice sacks, and that more are hoarded in bodegas in NCR? When the Customs examiners announced loudly that they are going to “raid” about 20 more bodegas in NCR as they are suspected also of hoarding, it looks like they are cautioning publicly the owners of such bodegas so that they could do something accordingly before they arrive. A well-meaning examiners team will not announce where they will go for their next raid.
Anyhow raids are meaningless without the consequential action.
Substantial stored rice not distributed in times of supply shortage is definitely a case for prosecution. Chances are, they are really smuggled. But even if they have complete papers, as owners of the bodegas raided in Bulacan claimed, they are still somehow liable for some malpractices because they are partly to be blamed for the shortfall of rice supply. Besides, they were about to repack the hoarded rice into the ready sacks of local producers because the locally-produced rice commands a higher price.
One of the better solutions against rice hoarding is the digitalization of transactions, from production, to distribution to actual market selling. And I think, this is the direction being considered by the DA. Hopefully with the cooperation of the DTI, and other concerned agencies. As for smuggling, we really need to go back to the earlier practice of documenting the importation of rice at the port of origin, not only at the port of arrival.
While we are at the rice supply thing, there is another one that came out also on Aug 24. The JCV Worldwide Trading was one of those who volunteered to provide the KADIWA stores with rice to sell at PhP20-25/kg. The company has the technology to produce palay to be able to sell at the quoted price. But Mr. Jimmy Vistar, the president of the Company is already withdrawing its support to the Kadiwa’s promotion as of Aug 24. He categorically stated that the government is not showing support to the rice production effort proving the possibility to sell rice at a low price, using their technology. That is very unfortunate.
The following day, NEDA Secretary Arsenio Balisacan was telling the media that PhP20.00/kg rice is still possible but it might be two years hence. It is because according to him, PBBM is putting a lot of resources into the aggie sector to increase productivity, especially of rice. He further stated, “What drives down low prices are increases in productivity. Government must invest in resilient and durable irrigation facilities, modern and high-yielding rice varieties, pest control and post-harvest facilities, among others”. Talking like an agricultural economist. Sec Balisacan should have a business-likediscussion with people like Mr. Vistar.**
