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RICE
millers in Luzon have committed to help the government
stabilize rice prices at P33 to P35 a kilogram.
The
Department of Agriculture (DA) claimed that over 60
millers and retailers, led by Herculano Co, president of
the Philippine Confederation of Grains Associations (Philcongrains),
made this assurance in a recent dialogue with
Agriculture Secretary Arthur Yap in Quezon City.
Prices
of commercial rice shot up to more than P40 a kilo in
certain areas during the summer, owing to the steep
prices of rice in the world market.
The
increase in rice prices was due to external shocks, like
declining global production caused by climate change;
the ballooning food demand from fast-growing economies
like China and India; market speculation; and the
unabated increase in the price oil that put pressure on
the price of chemical fertilizers and other services.
The high
cost of rice and other basic foodstuff was a major
reason for the double-digit inflation rate of the
Philippines in June.
Yap said the government is ready to “flood the market” with
state-subsidized stocks to stave off undue price spikes
until the end of 2008.
The DA
said the National Food Authority (NFA) will have enough
stocks to flood the market with cheap rice until the end
of the year.
The NFA
will pump some 350,000 metric tons, or 7 million bags
every month, into the domestic market as a way to
stabilize supply and bring down prices, especially
during these lean months. |
