RICE CARTEL PROBE
THE House Quinta Committee has grilled the country’s top rice importers in connection with the alleged cartel which is manipulating prices and keeping retail costs high, despite tariff reductions.
Initial findings from the House Quinta Comm, also known as the Murang Pagkain Super Committee, revealed speculative practices and potential collusion in the rice importation sector, which lawmakers believed were driving up retail prices.
The tariff reductions were intended to make rice cheaper or more affordable for Filipinos.
“The committee focused on top importers because there were clear signs of speculation in the rice import market, such as swelling commercial inventories, delays in withdrawals by importers, and imports surpassing USDA (United States Department of Agriculture) projections,” Albay Rep. Joey Salceda, lead chair of the mega-panel, said.
The quinta-panel—composed of the Committees on Ways and Means, Trade and Industry, Agriculture and Food, Social Services, and the Special Committee on Food Security—focused on the top 10 rice importers, which controlled 36 percent of total imports, pointing to significant market concentration.
Lawmakers warned that this high concentration raised concerns about possible collusion among importers to manipulate rice prices.
Summoned to the House inquiry were top rice importers top rice importers Bly Agri Venture Trading, Atara Marketing Inc., Orison Free Enterprise Inc., Macman Rice and Corn Trading, King B Company, Sodatrade Corp., Lucky Buy and Sell, Vitram Marketing Inc., Nan Stu Agri Traders, and RBS Universal Grains Traders Corp.
Corporate records from the Securities and Exchange Commission (SEC) revealed interlocking directorships between RBS Universal Grains Trader Corp. and Sodatrade Corp., which could have enabled coordinated business strategies and anti-competitive practices.
The committee faced challenges verifying the corporate structures of Bly Agri Venture Trading, Macman Rice and Corn Trading, King B Company, Nan Stu Agri Traders, and Lucky Buy and Sell, as they were not registered with the SEC.
Instead, these entities may have operated as sole proprietorships registered with the Department of Trade and Industry, complicating regulatory oversight.
Despite the reduction of rice tariffs from 35 percent to 15 percent under Executive Order 62 issued by President Ferdinand R. Marcos Jr. in June 2024, rice prices did not decline significantly.
While the landed price of imported rice dropped by P11 per kilo year-on-year, domestic prices rose from P51 to P55.30, highlighting market inefficiencies.
Additionally, the gap between landed and domestic prices widened drastically, from P3 per kilo in 2023 to P20 in 2024, signaling potential manipulation or inefficiencies in the supply chain.
Evidence of speculative behavior emerged, including reports by the Philippine Ports Authority of 800 containers of overstaying rice imports in September 2024, which may have indicated hoarding.
The country also anticipated importing up to 5 million metric tons of rice, as traders took advantage of low tariffs ahead of a potential return to higher rates.
As of November 1, 2024, the country’s total rice stock inventory was estimated at 2.5 million metric tons—a 25 percent increase from the previous year.
