Speaker Romualdez warns vs agriculture, basic commodity profiteering

Speaker and Leyte Representative Martin Romualdez on Monday warned traders and middlemen against profiteering or jacking up prices of agricultural products and basic commodities.

Romualdez issued the warning after a House Trade and Industry Committee inquiry into the discrepancy between the farm gate prices of agricultural products and basic commodities compared to retail prices.

“Sa mga profiteering traders, middleman, na masyadong matakaw sa kita nila... bantay na lang tayo. Moderate your greed. Try to be more reasonable,” Romualdez said in a press conference.

“Masyadong malawak ang pagitan ng farmgate price sa final selling price. Nasasaktan talaga ang mga consumers, and perwisyo rin sa mga farmers. We are sad about the results of the inquiry,” Romualdez added.

During the committee hearing, Department of Agriculture (DA) Agribusiness and Marketing Service (AMAS) Director Junibert de Sagun said the final retail prices of agricultural products were affected by several factors, among which were:

• processing, transportation, and marketing costs incurred between the farmer and consumer
• market demand
• supply chain
• marketing (intermediary) margin
• weather conditions
• market competition.

DA Assistant Secretary Paz Benavidez II had also testified that the DA could only address the issue by asking President Ferdinand Marcos Jr. to grant the agency a buffer fund that it would use to buy rice and basic commodities for stockpiling.

These stockpiles would be later sold to the market at a lower price to address price manipulation as provided under the Price Act.

Romualdez, however, was unimpressed with the measure.

“We are sad at the results of the hearing today. And we saw that the DA, and the DTI (Department of Trade and Industry)... they don’t have an immediate solution for this,” Romualdez said.

“They are requesting for funding for buffer stocking, pero matagal ito bago magkaresulta. Mas maaga, mas maganda. That is why we are finding ways to address the trend of rising retail prices as against [unchanged] farmgate prices,” Romualdez said.

(Their policy's result would be felt much later. The earlier the response, the better.) — DVM, GMA Integrated News