December 10, 2024 | 8:22pm
MANILA, Philippines — House lawmakers believe rice traders may have “colluded” to manipulate rice prices by withholding the release of supply from warehouses.
At the second hearing of the House Quinta Comm, or the Murang Pagkain Supercommittee, on Tuesday, December 10, the Philippine Statistics Authority (PSA) presented annual demand-supply ratio for rice from 2018 to 2024.
According to agency’s report, the rice supply ratio was 82.5% in 2023, suggesting that demand was almost on par with the available supply.
However, the ratio dropped to 60.8% in the first quarter of 2024. It increased to 67.6% in the second quarter and 69.4% in the third quarter, but still remained below the 2023 annual figure.
The rice ratio indicates the comparison between the demand for rice and the volume available. A lower ratio means supply exceeds demand, while a higher ratio indicates demand surpasses supply.
Lawmakers were suspicious of the declining demand-supply ratio for rice in 2024, questioning why prices of domestic rice have risen to over P50 per kilogram despite an excess in rice stocks.
Rep. Stella Quimbo (Marikina, 2nd District) pointed out this disconnection, saying that the data on oversupply of rice does not align with the increase in rice prices.
“May excess supply. Kung ano ang kailangan natin na bigas ay mas mababa sa kung ano ang meron tayo. At kapag may excess supply, dapat bumaba ang presyo. Pero bakit hindi bumababa?” Quimbo asked.
(There is excess supply. What we need in rice is lower than what we have. And when there is excess supply, prices should go down. But why aren’t they?)
She explained that the reduction of the rice tariff to 15% under Executive Order 62, signed in 2024, was expected to boost the country’s supply and lower rice prices.
However, Quimbo said this was not the case. At the same time, it did not make sense how rice prices did not decrease.
The PSA reported a 24.4% year-on-year increase in Philippine rice supply in November 2024, reaching 2.46 million metric tons. More than half were held by commercial traders.
“Nasa kamay ng importers at traders na yumaman po ng P13 billion dahil ‘yun po ‘yung kinita nila dahil bumaba ang taripa to 15%,” Quimbo said.
(It is in the hands of the importers and traders who made P13 billion in profit because that is what they earned after the tariff was reduced to 15%.)
Lost government revenues. According to Bureau of Customs data presented by Rep. Joey Salceda (Albay, 2nd District), the government lost P13 billion in revenue in 2024 due to the reduced tariff.
Quimbo urged rice traders to release their stocks from warehouses to bring the price down to around P35 per kilogram.
Other lawmakers lso said this shows the executive order’s failure to fulfill its goal of reducing rice prices.
The House Quinta Comm has been investigating the alleged smuggling and price manipulation of agricultural goods.
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