No relief from soaring prices of rice, garlic, sugar

MANILA, Philippines - Despite measures implemented by the government, consumers are unlikely to get immediate relief from higher prices of rice, sugar, garlic and other commodities.

Malacañang, however, assured the public that the supply of these commodities in the market is stable and that the Department of Trade and Industry (DTI) has been monitoring any unwarranted price increases.

Secretary Herminio Coloma Jr. of the Presidential Communications Operations Office said the Department of Agriculture (DA) and the National Food Authority (NFA) are monitoring the prices of rice, which have increased by an average of P2 per kilo.

The government is also monitoring the prices of garlic and ginger, among other market items, he said.

Coloma said the government will ensure that at all times the supply is stable and responsive to the demand, noting that volatility is only brought about by market forces.

He said the government will always protect the welfare of consumers and will make sure that there is enough supply to meet the market’s demand, and that prices remain within the range set by the Price Control Law.

The price of rice is expected to stabilize in the next two months, when the harvest season starts.

The prevailing price of sugar in Metro Manila remains high as demand remains strong and sugar producers have only started selling sugar intended for the world market to local markets after converting the sugar for export into domestic consumption, the Sugar Regulatory Administration (SRA) said yesterday.

The average retail price of refined sugar in Metro Manila as of June 6 was placed at P50.55, up from P49.50 per kilo in the last week of May.

The average wholesale price of refined sugar as of June 6 was placed at P2,306 per 50-kilogram bag, slightly higher than the average price of P2,300 per 50-kilogram bag in the last week of May.

“Demand remains high and sugar producers have only begun converting sugar,” said SRA administrator Ma. Regina Martin. “Retail prices have risen slightly but this will be lowered soon because we have reallocated world market sugar to the domestic market.”

She said abundant production due to good weather conditions has already lowered the average mill site prices to around P1,650 from P1,700 in the last week of May.

The SRA early this month cleared the conversion of 90,000 metric tons (MT) of world market sugar to domestic market sugar to arrest rising prices that have been caused by speculations of supply tightness at the end of the crop year in August.

The conversion rights granted to sugar producers must be used by July 1 or would be rendered invalid.

Martin earlier said the SRA board might pass another conversion order if needed.

“We need to observe the market and monitor with some reserve volume,” she said.

Martin said the SRA is monitoring the increase in retail prices and would submit a recommendation to the DTI for the imposition of the appropriate sanctions against traders that are raising prices unreasonably.

“These retailers would be asked to show cause for raising their prices,” she said.

The DA is eyeing the importation of around 46,000 MT of garlic this year to fill the supply gap and contain the increase in prices, an official said yesterday.

Following the spike in garlic prices in Metro Manila markets, the National Garlic Action Team (NGAT) convened last week to determine the cause of the price spikes and come up with solutions.

The average retail price of imported and local garlic in major trading centers in the metropolis has risen to P290 per kilogram and P200 per kilogram, respectively.

The prevailing retail price for local garlic is double the average farm gate price of P100-P130 per kilogram.

It was discovered during the NGAT meeting that garlic prices have been rising because of a combination of a supply gap and the reluctance of traders to buy from local producers.

Jennifer Remoquillo, director of the DA High Value Crops Development Program (HVCDP), said the NGAT is expected to come up with a resolution this week for the issuance of more than 900 import permits. Each permit would allow the importation of 50 MT of garlic.

The volume to be imported would satisfy 50 percent of the domestic demand of more than 90,000 MT annually. Out of the country’s total demand, only around 11,000 MT is produced locally.

Meanwhile, Bulacan farmers urged authorities to inspect and conduct an inventory of rice warehouses in Central Luzon to check the actual situation of the rice stocks.

Director Rex Estoperez, National Food Authority (NFA) spokesman, said they might conduct an inspection but did not disclose where and when.

Melencio Domingo, chairman of the Malolos City Agriculture and Fisheries Council, said there is no problem with rice supply, but the problem is when traders engage in hoarding to keep the supply low and raise prices.

Domingo cited the high volume of harvest by Bulacan farmers last cropping season.

He said that the low supply of rice in the market is artificial due to hoarding, so the NFA should implement the inspection of rice inventories in warehouses.

Estoperez, however, said there is no need yet for NFA to conduct an inspection of warehouses.

Estoperez noted that in the past the NFA conducted inspection on warehouses when supply of rice went down, but as of now there is enough supply.

The Kilusang Magbubukid ng Pilipinas (KMP) said the price increase of rice could serve as “acid test” for presidential assistant on food security and agricultural modernization Francis Pangilinan.

The KMP issued the statement after the NFA said that the P2 per kilo hike in the price of rice is temporary, with prices likely to normalize in September, when the harvest season resumes.

KMP chair Rafael Mariano described the sudden hike in rice prices as “highly unacceptable and unjust.”

He blamed rice cartels’ alleged manipulation for the increase.

“Obviously, rice cartels are at it again. The P2 per kilo increase in rice prices is a manipulation by rice cartels coddled by the Aquino government,” Mariano said.

The KMP challenged Pangilinan to roll back rice prices, dismantle rice cartels and reverse the agricultural trade liberalization policy of the government.

He said the Filipino people “should not buy the NFA’s line that the increase is only temporary and that rice prices would stabilize by September.”

Zamboanga City Mayor Ma. Isabelle Climaco-Salazar had appealed to the Bureau of Customs to investigate the alleged release by officials of the bureau’s local district of thousands of sacks of allegedly smuggled rice.

Salazar said the local police seized some 3,000 sacks of rice more than two weeks ago.

The cargo was unloaded in a private wharf in Zamboanga City after it arrived on board three vessels from Sulu and Tawi-Tawi.

Salazar said the police last June 12 seized at least 15 sacks of imported garlic from Malaysia. Local Customs officials had also released the cargo.

A kilo of garlic is sold at P250 per kilo in Zamboanga City while in Manila the price is close to P300 a kilo. – With Dino Balabo, Ding Cervantes, Roel Pareño