Farmers currently harvesting their crop are expected to augment the country’s rice inventory shortly. This is good news following the recent announcement by the Department of Agriculture (DA) that the country’s nationwide rice inventory is only good for 80 days (See, “Govt aims to keep rice imports at 1.6 MMT,” in the BusinessMirror, March 6, 2020).
The current inventory also consisted of imported rice brought in by traders under a deregulated environment, which allows them to import rice provided they secure a sanitary and phytosanitary import clearance (SPS-IC) and pay the 35-percent tariff.
Aside from rice, poultry raisers belonging to the United Broiler Raisers Association said the country has enough poultry supply (See, “Weak demand, high inventory cut farm-gate price of broiler,”in the BusinessMirror, March 9, 2020). Ubra said the price of live broiler has been declining in the last three weeks, as fewer people frequented malls and dined out due to recent developments of an increasing number of COVID-19 cases in the country. What is surprising, though, is that the retail price of chicken remains elevated based on DA’s monitoring report.
What the DA and local producers are saying is that local food supply is sufficient for now. A look at the DA’s latest report on Metro Manila’s wet markets indicates that prices of food items, such as pork, chicken and fish, are stable. The data does not show any aberrations or abnormal movements in prices, indicating that supply of essential food items is steady.
With the confirmation of more COVID-19 cases, business activities in some Metro Manila cities could slow down. This is understandable, considering the statement of experts that “social distancing” is an effective way of preventing the spread of the virus. To stop the virus from being passed on to other people, experts continue to discourage large gatherings and the staging of events, and this could further help swell the inventory of some food items.
However, the stability of the country’s food supply is currently being threatened not by the virus itself, but by the tendency of some consumers to overreact, resulting in panic buying. While we understand the apprehension of Filipinos in times like these, particularly in areas where there are confirmed virus infections, panic buying will not make the virus go away. Worse, this will only hurt the poor as hoarding consumer goods could jack up prices.
We urge concerned government agencies to monitor the supply of food items and other consumer goods, and ensure that retailers and traders will not take advantage of the situation. Government must watch out for signs of hoarding, a strategy used by traders to boost the prices of their products. Jacking up prices at this time is not warranted and unconscionable considering the health crisis facing the nation.
Certain mechanisms, such as the price freeze and suggested retail price scheme, are still in place to ensure that food items and other consumer goods will remain affordable. We call on the government to see to it that retailers, particularly in wet markets, are adhering to the SRP. Also, government should apprehend those found violating the price freeze on essential medicines and medical supplies.
1 comment
Panic buyers are smarter than you. They are preparing for time that they fall ill and be quarantine, or worse city is lockdown.