ALBAY 2nd District Representative and House Ways and Means Chair Joey Sarte Salceda, who serves as the overall chair of the newly formed Quinta Committee (Murang Pagkain Super Committee), announced on Wednesday that they would soon present initial recommendations to President Ferdinand R. Marcos Jr. on resolving the alleged rice price manipulation in the country.
Salceda mentioned that the committee is investigating rice price manipulation trends over the past decade, specifically examining spikes in rice prices from 2012-2013 and the years 2016-2018 aimed to determine if the same network of smugglers and cartels is still operational.
“Kailangan may masampolan na (They need to be punished) profiteers, hoarders, smugglers and cartelists and regulatory patrons in both 2016-19 rice price spikes and the 2024 stubborn high prices despite tariff reduction from 35 percent to 15 percent and fall in 14 percent fall in global rice price,” he said in a media release.
Salceda emphasized that the Philippines already has sufficient laws in place to enforce accountability, prosecute, and punish those who abuse and manipulate the market.
“By Christmas, we aim to provide initial recommendations for the President. Not yet the Committee Report, but we hope it is something that PBBM can use to crack down on price abuse. It should serve as a gift to the people,” Salceda said.
He noted that the superpanel’s objective is to bring rice prices as close as possible to President Marcos’s target of PHP20 per kilogram.
“We will try to push the envelope as close to that as possible. What I can tell you is that it looks like there is a path to PHP30 per kilo,” Salceda said.
He explained that the prices of rice, which accounts for as much as 22 percent of total expenditures by poor households, and food in general, takes up as much as 54 percent of total spending by low-income families.
“A big part of that is cutting down excessive middleman and cartel profits. The landed price of imports – including movements in world prices and the tariff reduction implemented last July – has declined by around 24.9 percent year on year. However, consumer retail prices have risen 9.0 percent over the same period. It’s puzzling and an unmistakable sign of shenanigans in the rice trade sector,” Salceda said.
He added that President Marcos has pursued all available policy options to lower rice prices.
“The landed cost of Thailand rice is currently PHP35.52 per kilogram, which means industrial users are already benefiting from these prices. We are nearing PHP30 per kilogram. The key question is: where does the benefit of the reduced tariff go, and how can we eliminate these excessive profits?” he asked.
Salceda also highlighted that the farmgate price in Central Luzon is now just PHP20.02. “Assuming milling yields 65 percent, the milled rice should come out to PHP30.08 per kilogram. Even if we factor in a 20 percent profit margin, prices should be around PHP37 per kilogram. Something is amiss,” he said.
He also said that the rice imports have increased to 4.1 million metric tons, exceeding the projected import needs by 200,000 metric tons for the year.
“I suspect that there is already speculation going on, especially since traders know that the tariff reduction is not forever,” Salceda said.
The Quinta Committee was created to address smuggling and price manipulation of basic goods and essential commodities with the end in view of achieving zero hunger and promoting food security.
The panel has, as members, Representatives Ferjenel Biron (Trade and Industry), Wilfrido Mark Enverga (Agriculture and Food), Rosanna Vergara (Social Services) and Luisa Lloren Cuaresma (Food Security), along with Anak Kalusugan Party-list Rep. Ray Reyes. (PNA)
