House Speaker Martin Romualdez proposed the creation of a mega task force to pursue market manipulators and bring down the price tags of rice.
“A call to immediate action is needed to force a decrease in rice prices for the benefit of the Filipino consumer,” he said in a statement on Sunday.
The Speaker made the proposal after the House Quinta Committee led by Ways and Means chairperson and Albay Rep. Joey Salceda uncovered alarming evidence of collusion and price manipulation in the rice industry despite supposed oversupply and reduced import tariffs.
An economist, Salceda explained that rice prices should already stabilize at P35 per kilo, following the significant drop in the landed cost of imported rice, now averaging P33.95 per kilo.
Romualdez explained that the envisioned task force may be composed of representatives from the Department of Agriculture (DA), and the Department of Justice (DOJ), including the National Bureau of Investigation, Bureau of Customs, Bureau of Internal Revenue, and Department of Trade and Industry.
The task force should have the power to conduct inventories, check on compliance with tax laws and rules, inspect warehouses, and immediately padlock any erring business establishment, he noted.
It will also be tasked to submit a monthly report to Congress as part of its oversight functions.
“The findings of the Quinta Comm expose a serious betrayal of public trust. The Filipino people are paying unnecessarily high prices for rice, which should now be at P35 to P40 per kilo due to oversupply and tariff reductions. This blatant manipulation is unacceptable,” Romualdez noted.
Despite ample supply, the Philippine Statistics Authority (PSA) reported that the price of regular-milled rice decreased only slightly from P50.16-50.40 in October to P49.44 in the early part of last month.
The Speaker also urged the DOJ and the Philippine Competition Commission to hold alleged perpetrators accountable.
It can be recalled that Agap party-list Rep. Nicanor Briones identified two major companies — RBS Universal Grains Traders Corp. and Sodatrade Corp. — as key players, importing a combined 273,000 metric tons of rice under allegedly suspicious arrangements.
“We will not stop until justice is served and the rice industry is free from corruption. The days of exploitation are over,” he stressed.
Additionally, the Speaker called on the Department of Agriculture to intensify monitoring of rice stockpiles and ensure that surplus stocks are released into the market to stabilize prices.
Earlier, the Department of Agriculture said the regulatory powers of the National Food Authority must be restored to allow it to regulate rice traders and bring down prices of the staple grain.
“In the past, rice traders were required to register with us. Since the NFA does not have regulatory powers anymore, we cannot revoke their license to operate if they engage in unfair practices,” Agriculture Secretary Francisco Tiu Laurel said.
Tiu Laurel said when the Rice Tariffication Law was passed in 2019, the NFA powers were limited to managing buffer rice stocks.
“Previously, the NFA was also allowed to import so we can intervene if there is shortage. That is no longer the case. So it would really be a big help if these mandates can be restored,” he added.
Marikina City Rep. Stella Quimbo, however, dismissed Tiu Laurel’s claim that the DA is powerless to address soaring rice prices, noting clear legal provisions granting the agency enforcement authority.
She said the Agriculture department has significant powers under the Price Act and the amended Rice Tariffication Law to act against price manipulation, hoarding, profiteering and cartels in the rice industry.
“Do not tell that you do not have the power that you do not have the power to go after people conspiring and making the prices of rice go up because that is not true,” she told DA Undersecretary Asis Perez during a hearing of the House “Murang Pagkain” Super Committee.
Quimbo cited Section 10 of the Price Act, saying the law clearly empowers the DA to conduct investigations, impose fines of up to P1 million, seize basic necessities, and initiate prosecutions.
The rice price issue came to the fore after NEDA Director Nieva Natural told the House panel on Tuesday that the President’s Executive Order 62, which lowered the tariff on imported rice from 35 percent to 15 percent, did not lead to a reduction in prices as expected.
“This is also a puzzle for us… Perhaps this deserves a more nuanced analysis,” Natural said.
Quimbo cited data showing that the landed cost of rice had decreased from P34.21 per kilogram in July to P33 in December given the reduced tariff, but this did not translate to lower retail prices.
The Philippine Rice Industry Stakeholders Movement said traders were importing high-cost varieties instead of affordable rice.
PRISM co-founder Orlando Manuntag said from January to December 2024, at least 74 percent of the 4.3 million metric tons (MT) of imported rice that arrived were premium varieties, primarily whole grain, which are significantly more expensive.
Only a small fraction consisted of well-milled or broken rice—varieties intended to lower prices for consumers, he said.
Manuntag called on the government to enforce regulations requiring a mandatory allocation of at least 10 percent of imports for well-milled and broken rice.
Editor’s Note: This is an updated article. Originally posted with the headline: “Romualdez urges creation of ‘mega task force’ to run after price manipulators”
