By Dean Aubrey Caratiquet

Rice importers and traders received flak from lawmakers on Tuesday for their ‘collusion’ to manipulate prices despite reduced import tariffs and an oversupply of rice, which has forced Filipino consumers to shoulder artificially inflated costs.

At the Murang Pagkain Supercommittee (Quinta-Comm) hearing, AGAP Party-list Rep. Nicanor Briones and Marikina City 2nd District Rep. Stella Quimbo pointed out evidence suggesting shared ownership among top importers, profiteering, and a pattern of hoarding.

“May excess supply. Kung ano ang kailangan natin na bigas ay mas mababa sa kung ano ang meron tayo. At kapag may excess supply, dapat bumaba ang presyo. Pero bakit hindi bumababa?” Quimbo, senior vice chairperson of the House Committee on Appropriations, told the super panel tasked with identifying gaps in government programs and holding those responsible for market abuses accountable.

Quimbo described the situation as a clear case of collusion, on account of data from the PSA showing that the demand-supply ratio for rice dropped from 82.5% in 2023 to 69% in 2024, clearly indicating an oversupply.

The Marikina lawmaker also pointed out the immense profit amassed by importers and traders as rice import tariffs were slashed from 35% to 15% by virtue of Executive Order (EO) No. 62, which equates to P13 billion worth of savings that should have been passed to the consumers but was used to hoard stocks and artificially drive up rice prices instead. 

Government data has shown that as of November 1, the country’s total rice stock inventory was estimated at 2.5 million metric tons—a 25% increase from the previous year.

While the landed price of imported rice dropped by P11 per kilo year-on-year, domestic prices rose from P51 to P55.30, exposing market inefficiencies.

At the same time, the gap between landed and domestic prices widened drastically, from P3 per kilo in 2023 to P20 in 2024, signaling potential manipulation or inefficiencies in the supply chain.

“Dapat nasa bandang P35. Pero ngayon, malinaw na ito ay pagsasamantala,” Quimbo declared, arguing that prices should stabilize at around P35 per kilo even with reasonable profit margins.

Filipino consumers paying the price for rigged rice prices

Briones supported Quimbo’s accusations by exposing evidence of shared ownership among top rice importers by naming two major importers—RBS Universal Grains Traders Corp. and Sodatrade Corp.—that collectively imported 273,000 metric tons of rice.

“‘Pag tiningnan mo, ang mga may-ari ay iisa [lamang]. Ibig sabihin, dito pa lang, malinaw na may sabwatan,” the AGAP Party-list chair pointed out, describing how such arrangements consolidate control over the market.

“Napakarami nating bigas, pero nasaan? Tinatago ba? Inalam niyo ba kung nasaan ang bigas na ’yan?” he asked, criticizing the Department of Agriculture’s lack of action to investigate these stockpiles.

Briones also called out the failure of EO 62, which reduced tariffs but failed to deliver on its promise of lower rice prices, further emphasizing that hoarding has dire consequences for both farmers and consumers.

He also argued that the importers’ refusal to release stocks leaves farmers struggling to sell their palay at fair prices.

Solon slams Bureau of Plant Industry for lapses in issuing importation permits

Meanwhile, Deputy Speaker and Quezon Province Rep. David “Jayjay” Suarez censured the Bureau of Plant Industry (BPI) for issuing permits to rice importing companies without exercising due diligence following the discovery that the two top rice importers in the country appear to have only one owner.

He made the remarks in response to the admission of BPI Director Gerald Panganiban that the ownership details of these companies were not checked prior to the issuance of their respective import permits.

This acknowledgment of Panganiban drew frustration from Suarez, who criticized the agency’s oversight. 

“Bakit hindi nyo na tsinek? Hindi puwedeng ngayon i-review iyan eh tapos na ang nangyari tapos ngayon niyo gagawin ang trabaho nyo. Dapat nung nag-a-apply pa lang sila tsinek nyo na kaagad,” Suarez said.

The Quezon Province lawmaker underscored the importance of due diligence, raising concerns about the potential for market manipulation if a few individuals control multiple rice importing firms. 

Moreover, Suarez dished out a request to summon the companies in question back to the committee, further recommending that the importers present themselves before the committee to explain their transactions and ownership structures. (with reports from Mela Lesmoras/PTV News)

-iro