The time has come for the government to buy palay aggressively as farm gate prices have receded to P17 a kilo, which is within the National Food Authority’s support price, according to the Samahang Industriya ng Agrikultura (Sinag).
The umbrella group of farmers and agri-business operators said this should be the priority of the NFA instead of the proposed inspection of warehouses to check on possible hoarding activities.
Sinag was reacting to the statement of Agriculture Secretary Emmanuel Piñol, who said he would submit to President Duterte a proposal to create an interagency task group that would investigate on traders who might be taking steps to create an artificial shortage of rice.
“Fresh palay is now fetching P17 a kilo,” Sinag chair Rosendo So said. “NFA has to procure to ensure that farmers get a good price, even at the peak of the harvest season.”
So said the threat to raid rice warehouses might have a negative effect as legitimate rice traders and millers were now having second thoughts on buying palay as they might be “charged” of hoarding rice.
“Traders are being scared off with raids on legitimate traders and millers,” So said. “This will result in the further drop in prices to the disadvantage of farmers.”
The Sinag chair said the proposal needed more explanation, especially on its parameters.
“Who will conduct the raids? What is the system for taking inventory? What defines storing as opposed to hoarding?”
“We’re afraid this would end up in selective inspection to favor a certain group of rice traders,” So added. —RONNEL W. DOMINGO