DA probes traders buying palay at lowball prices

Metro Manila, Philippines - The Department of Agriculture (DA) said it is investigating traders in 32 areas in Luzon for taking advantage of farmers and buying palay from them at very low prices.

Agriculture Secretary Francisco Tiu Laurel Jr. said the DA received reports that the farmgate price in those areas range from P13 per kilogram to P15 per kilogram.

He, however, did not provide the areas where there was alleged trader abuse.

“Iniimbestigahan na ng opisina ng DA kung sino iyong mga traders na bumili na iyon because we have to identify them,” Tiu Laurel said during the Malacañang briefing on Monday, May 19.

[Translation: The DA is investigating who these traders are buying at a very low price because we have to identify them.]

When asked if there will be cases to be filed against the unscrupulous traders, the secretary said: “Well, technically, wala [none] as of the moment.”

He instead said the DA is ready to buy from farmers in areas with very low palay prices. He also talked about the DA’s ongoing review for a floor price, a proposal from agricultural groups to protect farmers from being taken advantage of.

“We were checking pa kung kailangan ba ito ng batas o puwedeng department administrative order lang ‘no,” the DA chief said.

[Translation: We were checking if this needs a law or a department administrative order is already sufficient.]

“And hopefully nga makahanap kami ng batas or ruling na kung hindi sumunod ang isang trader o isang buyer sa floor price ay puwede nating kasuhan or ma-account sila,” he also said.

[Translation: Hopefully, we can find a law or a ruling so that we can file a case against traders or buyers not following the floor price.]

P20 rice sale in Mindanao by July

Meanwhile, Tiu Laurel said the DA is planning to bring P20 per kilogram of rice in some provinces in Mindanao by July, its second phase of the subsidized rice program.

He said the July target covers Zamboanga del Norte, Basilan, Cotabato City, Tawi-Tawi, Maguindanao del Sur, Maguindanao, Davao Oriental, Sorsogon, Maguindanao del Norte.

By the third phase in September, the P20 rice is expected in Sultan Kudarat, Lanao del Norte, Catanduanes, Agusan del Sur, Sarangani, and Dinagat Island.

So far, in its first phase, the DA said the cheap rice option is available in Visayas, particularly Negros Oriental, Samar, Eastern Samar, Negros Occidental, Northern Samar, Leyte, Bohol, Antique, Cebu, Iloilo, Capiz, Biliran, Southern Leyte, Guimaras, Siquijor, Aklan.

The areas in these three phases will share with the DA the subsidy of P13 per kilogram.

Tiu Laurel said the government chose the areas with high poverty incidence rates.

He said areas who bought stocks from the National Food Authority under the food security emergency are also qualified to join the shared subsidy program.

The DA is also selling P20 rice for the vulnerable sectors through 34 Kadiwa outlets in Luzon and nearby provinces. Tiu Laurel said it will expand to 55 by June.

The DA has a P5-billion budget for the subsidized rice program which came from the president’s contingency fund.