NFA claims 'market manipulation' lifted rice prices

The price of commercial rice is up by P1 per kilo or P50 per sack, traders interviewed by GMA News confirmed on Tuesday, and the National Food Authority is claiming it's because of manipulation.

 

The adjustment took effect as early as two weeks ago, specifically noted by wholesalers and retailers who source their supply from Bulacan and Pangasinan, the traders said.

 

Farmer leader Melencio Domingo said the increase is an apparent offshoot of higher prices of palay or unpolished rice in Bulacan – from P18 to P23 per kilo.

 

Quezon City- and Pasig City-based traders, however, said they could not pass the increase to their customers, especially now that their daily sale is "weak."

 

Instead, the traders have settled for a lower profit margin of P2 per kilo from P5.

 

"Minsan tumutubo kami ng P100 per sack... Pag sobrang taas ng bigas, kami nag-sa-sacrifice nun," trader Evan Bautista said.

 

Director Angel Imperial Jr., spokesman of the National Food Authority, was quick to correct speculations at this point that El Niño was responsible for the increase in the price of rice.

 

He pointed to "market manipulation" as the culprit.

 

"I do not want to use the word speculation, but it could be a part... Sasabihin nila, binili namin 'yan ng mahal and, therefore, pag gagawin na nilang bigas ito... Mahal 'yung bili namin d'yan, 23 'yan. Kaya dapat ibenta namin 'yan ng 40... 46," Imperial said.

El Niño

 

Imperial's statement came on heels of a note by the Department of Agriculture which said various crops registered higher production loss due to El Niño, a phenomenon of extreme drought.

 

As of Thursday, May 21, the value of rice, corn and other high value crops affected by El Niño totaled P2,190,750,229.

 

Data released by the office of NFA Administrator Renan Dalisay noted total rice inventory of 2,748,800 metric tons – good for 89 days.

 

The average selling price of commercial rice wholesale is P34 per kilo, which retails for P37 per kilo, according to the NFA.

 

Imperial noted it is normal for rice prices to increase after the harvest season and when the rains come. The price also moves depending on the volume of yield and consumption, he said.

 

In case the price moves, it will range from P2 to P4 per kilo, the NFA official said.

 

Prices are expected to settle at normal levels once again at the onset of the harvest season in October. – VS, GMA News