Tuesday, August 19, 2008

Sabotage of Rice Pricing

Governor Erico Aumentado has instructed the office of the provincial administrator to look into the widespread sabotage on the prices of rice by private rice buyers in the rural towns of Bohol.

      Provincial Administrator Tomas Abapo Jr. said the Department of Trade and Industry (DTI) must check if these private commercial buyers have license to buy rice directly from farmers as ultimate producers.

      Abapo also said his office will help investigate if these private buyers follow the standard pricing that the National Food Authority (NFA) recommend.

      In the sabotage, some individuals lend money to farmers on the condition that they (farmers) would sell their produce to them at P12 per kilo only.

      This set up has been practiced for decades in the rural areas of the country, locally termed as tihap, and has been blamed for the farmers continued bondage with debt.

      Abapo cited that rice farmers are forced to resort to such set up during months before the harvest season or during the schedule of land preparation and planting when they had no capital for the production cost or when they're short of funds for the household needs.

      Ubay Mayor Eutiquio Bernales raised the concern during the Farmers Forum at the office of National Irrigation Administration here Thursday last week.

      The mayor said these commercial buyers are maybe middlemen who buy rice from farmers at P12 per kilo and resell them at a higher price.

      During the forum, officials of irrigators association in Pilar, Ubay, San Miguel and other nearby towns had a chance to raise concerns to NIA Administrator Carlos Salazar, Department of Agriculture (DA) Regional Director Ricardo Oblena, the manager of Land Bank of the Philippines-Bohol, and a representative of Quedancor.

      Nilo Caberte of NFA clarified that the buying price for rice is P17.50 per kilo for clean and dry stock, and there must be irregularity in the 12-peso rate.

      He advised the rice producers to transact business with them as they are trying their best to make themselves accessible to farmers through their warehouses in Carmen and Ubay, and even a mobile procurement system.

      Through the mobile procurement station, NFA will go to the areas of the farmers to pick up their produce of at least 50 kilos. It's just up to the farmers to contact them when their stock is ready.

      NFA targets to buy 20,000 bags of rice this year, and they will never refuse to buy the farmers' produce.

      Caberte also informed the farmers that NFA has a dryer in Carmen, and they are planning to bring one to Ubay.

      He, however, explained that for the use of the dryer, they prioritize farmers who intend to sell their produce to NFA.

      Also during the forum, Salazar assured the irrigators and farmers of enough water supply even without rain for a year as he shared his observation that the Malinao dam in Pilar, Bayongan dam in Ubay-San Miguel and Capayas dam in Ubay. That is under normal circumstances. (Angeline Valencia/PGMA)

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