The militant Kilusang Magbubukid ng Pilipinas (KMP) said that the problem that is perplexing Department of Agriculture Arthur Yap on where the problem of food prices lies is that it is controlled by cartels. According to Danilo “Ka Danilo” Ramos, secretary general of the group, “these cartels control the price as well as the price of most agricultural prices, an example of this is palay (unmilled rice) which costs P5-P9 a kilo and in some areas only P4.50. Since 1990 up to now the price of palay has been nailed to this price, but the price of rice continue to soar,”

“It is sad to say that the Department of Agriculture and the National Food Authority have become instruments of the rice cartel, by nailing the price of palay and increase the price of rice. Now only 1% of the total rice production is procured by the NFA, contrary to its mandated 10% procurement level. This is inspite of the fact that government should increase its subsidy of the agricultural sector to help us farmers,”

The group also pointed out that importation is not the solution to rising price of rice, in 1990-1995, the prices of rice are the following NFA rice-P8.44, Ordinary rice-P8.86, Special rice-P9.50, but when the Philippines entered the World Trade Organization in 1995-2004, NFA rice-P16, Ordinary P17-P18, and Special rice-P20-P28, that 100%-300% increase in rice prices.

Meanwhile Carl Anthony Ala, public information officer of KMP said that rice and food products are a very lucrative business for example the Binondo 7 rice cartel  makes a killing in lowering the price of palay and in importation. “This is a very big business considering that 90% of the Philippine population consumes rice,”

“The cartel rakes in from 100%-300% profits everytime they purchase palay at P5-P9 and sells the rice at minimum price of P16 and P28 at the highest. While the rice cartel is jubilant about its profits farmers are mired in poverty, which according to a study only earns P2000 per cropping season or only P22 a day. A sum not even enough for a single person to have 3 square meals a day what more for a whole family?” ended Ala. # # #   
 

KMP - 6 October 2004