EDITORIAL

‘Diversion of cheap rice behind crisis’

The diversion of government-subsidized rice to rice-producing areas, particularly Isabela, is the main reason behind the shortage of rice in urban areas, which resulted to skyrocketing prices of the staple in the past several months.

This was the contention of local rice dealers and traders who challenged the National Food Authority to flood urban areas with cheap rice during the lean months as strategy to lower prices of commercial rice.

According to the dealers, the arrival of hundreds of tons of imported rice, traders was not felt by consumers prices of commercial rice remained at P37-P40 per kilo. The importation has not lowered the demand as well as the prices in the urban areas because the imported rice is reportedly being brought to rice-producing areas where it is mixed with commercial rice.

Admitting there was slight decline lately in prices of commercial rice, dealers said prevailing prices are still high as the selling price of one cavan of commercial rice is more than P1,200 which, based on conservative estimates, is the right price.

Ironically, imported rice which is first shipped to rice-producing areas is allegedly being mixed by unscrupulous millers with commercial rice, and the resulting mixture is sold at the prices of commercial rice in urban areas.

Dealers and traders have urged the NFA to stop the diversion and flood urban centers with government-subsidized imported rice. They said this would force commercial rice traders to lower prices and ease burden of people groaning over high prices of food.

Aside from flooding the market with rice to stabilize the prices, dealers also called on the national government to invest heavily in irrigation facilities and lower the prices of farm inputs to enable the farmers to have reasonable profit.

Because of the unattractive income in rice growing, they said, farmers are tempted to sell their lands to developers who convert farms into other purposes. The farmers said the P500 per hectare fertilizer subsidy is not an effective solution to the problem because the subsidy is given only on a one-time basis.

With more income that could come as a result of increased productivity enhanced by irrigation and lower prices of farm inputs, the farmers said, they would no longer be tempted to sell their lands to subdivision developers and would stick to farming as their livelihood. Are concerned government agencies listening?