MANILA, Philippines — The rice milling industry is now bearing the brunt of the liberalization of the rice industry as 40 percent of the country’s rice mills have stopped operations.
The Philippine Confederation of Grains Association (PhilConGrains), a nationwide organization of rice millers, said only 60 percent of the approximately 10,000 rice mills in the country are operating.
“There are lots of mills, including the big ones, that have stopped operating. During the last harvest season, some bought at higher prices which they milled and yet they cannot sell those right now because prices have dropped,” PhilConGrains president Joji Co told reporters on the sidelines of the Masaganang Ani 300 launch Monday.
In Isabela, for instance, six big mills had already stopped operations. Co estimates that a big mill costs as much as P100 million, while the smaller ones range between P30 million and P50 million.
“There are still more in other areas particularly in major rice producing areas like Nueva Ecija, Isabela, Mindoro and Panay Island. Right now, only 60 to 70 percent are operating,” Co said.
“In Bocaue, Bulacan, 80 to 90 percent of their rice mills are not milling but they have rice stocks which all came from importation. Milling is labor intensive, but if they buy imported, it is very easy for them,” he said.
The reduction in the milling operations has resulted in lower production of rice bran (darak) which eventually pushed prices up.
Rice bran is one of the components for feeds for poultry and hogs. Prices of rice bran have already doubled to P17 per kilo from the average P8 to P9 per kilo.
“Rice bran should be lower than palay, it doesn’t make sense if it’s higher because it’s just a by-product,” said United Broilers Raisers Association president Elias Jose Inciong.
“We are already in a difficult position. We continue to look for alternatives whenever prices of corn, our main feeds materials, go up,” he said.
PhilConGrains is also pushing for the review of the Rice Tariffication Law. It also urged the Bureau of Customs to strictly enforce tariff rates amid undervaluation issues.