LAWMAKERS on Wednesday expressed concerns and questioned agriculture officials regarding their unmet promise of stabilized rice prices after the harvest season, particularly as the holiday season approaches with the cost of the staple food remaining persistently high.
During the hearing of House Committee on Agriculture and Food, officials from the Department of Agriculture (DA) and the National Food Authority (NFA) were asked to explain the disparities between the promised stabilization and the current market prices of rice.
House Deputy Majority Leader for Communications and ACT-CIS Rep. Erwin Tulfo expressed concerns about the unfulfilled commitment made by DA officials around July, August, and September regarding the anticipated price reduction of rice. The hearing was initiated following the recent surprise visit of Speaker Ferdinand Martin Romualdez and Tulfo’s at Farmers Market in Cubao, Quezon City, to assess
the prices of essential commodities, particularly food items, and ensure compliance with suggested retail prices.
Tulfo noted that despite the promised stabilization, rice prices have remained elevated, fluctuating between P52 and P60 per kilogram. “Whatever happened to that promise na bababa [ang presyo ng bigas], because people were waiting? Bakit hindi po bumaba?” Tulfo asked.
NFA chief Roderico Bioco cited key factors contributing to the surge in rice prices, including a shortfall in production between 2021 and 2022, low fertilizer uptake among farmers affecting yields, and international factors such as Indonesia’s announcement to buy two million tons of rice. He mentioned that the combination of these factors, along with import parity being higher than the landed cost, has resulted in higher rice prices in the local market.
Speaker Romualdez had said that Congress wanted to make sure that traders do not take advantage of the holiday season to jack up prices of basic commodities. “The Christmas season is meant to be a time of giving and compassion, and we want to make sure that prices of goods are affordable to a great majority of our people,” he added.
At the hearing, committee chair Quezon Rep. Mark Enverga said they expect that the information presented by the DA and its attached agencies will guide the committee in taking necessary steps to address concerns about the escalating prices of agricultural commodities, particularly rice and chicken eggs, and prevent further complications.
“It is our duty to inform the consuming public of the real situation as reports vary. We know that this time of the year is one of the busiest for all of us, but please bear with us. We need to keep everyone informed,” Enverga said.
“We need correct information for us to assess the situation and help making the necessary steps to address such concerns and to avoid the same mistakes,” he added. Amid high prices of rice due to external market pressures, DA Undersecretary Leocadio Sebastian reported an increase in domestic rice production, which has led many importers to cease importing as they found it more cost-effective to buy locally.
He highlighted the positive impact on farmers, noting that with the current price scenario, farmers can sell their produce at a higher margin, bringing increased income compared to the previous year when high fertilizer costs impacted their earnings. Responding to this, Nueva Ecija Rep. Ria Vergara expressed happiness for the farmers but raised concerns about capitalists potentially dictating high prices. “I’m very happy for the farmers. They deserve that. But we cannot also just allow the capitalists to dictate those high prices at the expense of the consumers,” Vergara pointed out. She emphasized the crucial role of the NFA as a stabilizer in the market. Vergara stressed the importance of NFA intervention to prevent unjustifiable price hikes by capitalists, ensuring fair pricing for both farmers and consumers.
Vergara proposed that the NFA act as a buffer in the market, setting reasonable prices to maintain equilibrium.
By having the NFA sell rice at a certain price, Vergara said it would discourage capitalists from selling at exorbitant rates, creating a balanced and fair environment for all stakeholders.
“No one’s going to buy because NFA is selling at P29 or P32. That way these capitalists will buy at the right (farmgate) price, not below P19 but P22 or P23. So everyone’s happy. No one’s making absurd amounts of money,” she explained.
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