'Cartels to blame for high rice prices'

Despite lower tariff, rice prices have remained high due to price manipulation by cartels and unscrupulous businessmen, a finance official said yesterday at a legislative hearing on alleged anomalies in the supply and distribution of the commodity.

- By JOSE RODEL CLAPANO

Under questioning by Iloilo Rep. Janette Garin at the continuation of the hearing by the quinta committee, Department of Finance director Jolly La Rosa said that in a "perfect competition," prices of rice in the country should have gone down since the implementation in July of Executive Order No. 62 reducing tariff on rice from 35 percent to 15 percent.

"There is a big possibility (of rice price cut). That could be a possibility. That is the only thing that I can think of," La Rosa said.

"If we will turn a blind eye on this, Mr. Chair, the Philippines will go nowhere," Garin said in reaction, referring to La Rosa's statement. "Every household must have food on the table."

Garin said that in July, no less than Finance Secretary Ralph Recto had expressed optimism that the tariff cut would result in a 10-percent reduction in retail prices of rice for the rest of the year.

The quinta panel comprises the committees on ways and means, trade and industry, agriculture and food, social services and the special committee on food security. Its overall chair is Albay Rep. Joey Salceda.

The committee is investigating possible collusion among rice importers and traders in manipulating the prices of the staple.