Metro Manila, Philippines — The House of Representatives has asked agencies to look into middlemen and the existence of a possible cartel manipulating rice supply and prices.
They pointed out the slow price decline of the staple despite the tariff cut on imported supply since July, and raised the possible impact of smuggling and other anti-competitive practices.
During the third hearing of a joint investigation of five House committees, the Philippine Competition Commission (PCC) presented the rice supply chain under the rice tariffication law that, to some lawmakers, showed possible loopholes.
“The worst kind is if it’s totally vertically integrated. From the top, he’s a trader-miller, he’s an importer, he’s a wholesaler, and he’ s a retailer. That, I think, is the part wherein anti-competitive conduct is very, very probable,” said Christian de los Santos, Competition Enforcement Office director.
House Deputy Majority Leader and Iloilo 1st District Rep. Janette Garin asked Agriculture Secretary Francisco Tiu Laurel Jr.: “Kaninong ahensya ang pagpulis ng middlemen na ‘yon? [What agency has police powers over these middlemen?]”
“In my opinion, Mr. Chair, wala [none],” Laurel said.
Garin said it was a “gray area,” to which the agriculture chief nodded in response.
She said the National Bureau of Investigation (NBI) should identify people and organizations suspected of involvement in price manipulation and profiteering.
The committees approved a motion to enjoin NBI in the probe.
Garin said this was the approach taken during the congressional probe on high onion prices in 2023.
Rice cartel
Proceedings of the House hearings on onion prices were forwarded to the PCC, which in September filed charges and recommended penalties against 12 onion traders and importers for “cartel conduct.”
De los Santos said the PCC is “already monitoring” the rice supply and price situation, noting that it is causing harm to consumers similar to what happened in the onion crisis
