Heavy sanctions vs rice hoarders

The much bigger majority are benefitting.

Cabinet Secretary Karlo Nograles on Tuesday warned of stiff penalties, including a fine of up to P100 million, against traders hoarding rice.

This, after Nograles stated that excessive rice stocking could be the reason why the market is not feeling the full effects of the Rice Tariffication Law (RTL) that is meant to stabilize and lower the price of rice.

“Cartels per se are prohibited and punishable by an administrative fine of up to P100 million per violation per participant and imprisonment from two to seven years,” Nograles said in a message to Daily Tribune.

He also said that a trader engaged in large-scale rice smuggling could be charged with economic sabotage which carries a capital punishment of life imprisonment.

Nograles earlier disclosed that the Philippine Competition Commission (PCC) is currently looking at possible rice hoarding by some unscrupulous traders — noting the prevailing high prices of rice, particularly in Metro Manila.

“It might not be as simple as a supply and demand problem. There may also be manipulation because we’ve been hearing reports that there are unscrupulous traders who are into hoarding,” Nograles said.

“Our government agencies are already investigating this. Maybe the reason why the market is not feeling the full effects or benefits of rice tariffication is because of some unscrupulous traders who are hoarding,” he added.

As this developed, Socioeconomic Planning Secretary Ernesto Pernia is standing firm on the continued implementation of RTL, stressing that the Duterte administration has already taken steps to address concerns aired against the measure.

“We won’t stop, there are already measures that would alleviate… the hardship of farmers,” Pernia said.

Pernia cited dire consequences should the government decide to revert the law, stopping the entry of imported rice in the process.

“We will be back to… last year and the poor will suffer. You know, the inflation for the 30 percent poorest (families) has really come down (by) 0.9 (percent). The much bigger majority are benefitting,” he explained.

According to Pernia, measures like the Rice Competitiveness Enhancement Fund (RCEF) will help lift the conditions of the most affected farmers. However, since RCEF is still on its early stage, they are not sure if it is enough.

“It’s just starting so we don’t know yet to what extent they are satisfied,” the Cabinet official said.

In addition, Pernia noted that at least P3 billion, in excess of the collection from rice tariffs, will be utilized for the direct cash assistance to farmers.

To recall, Finance Secretary Carlos Dominguez III said that tariff revenues collected from March to October period have already reached P11.4 billion, surpassing its full-year target of P10 billion.

“We have gone beyond the minimum earmark of P10 billion and have ample means to do even more to make our agricultural production more efficient,” Dominguez said.

For his part, Chief Presidential Legal Counsel and spokesman Salvador Panelo said that they will let Agriculture Secretary William Dar comment on matters or issues concerning rice.

“You know, the Palace side is the side of the head of the agency. I won’t talk unless the head of the department speaks. Secretary Dar should speak first before we speak, it’s hard to make the move first, that should not be,” Panelo said.

“The President always listens to the heads of the department. That’s when we will speak after they make an explanation,” he added.

Nograles stressed that Malacañang has been closely monitoring the implementation and effects of RTL.