If importers get rice at P33/kilo, why is it more than P50/kilo in the market? Deputy Majority Leader Tulfo wants to know

DEPUTY Majority Leader and ACT-CIS Party-list Rep. Erwin Tulfo on Tuesday raised serious concern on the glaring disparity between the P33.4 landed cost per kilo of imported rice and its P50 to 60 market price, asking importers, wholesalers and retailers to shed light on potential inefficiencies and price manipulations within the rice supply chain.

During Tuesday’s hearing of the House Quinta Comm or the Murang Pagkain Supercommittee, formed under House Resolution (HR) No. 254 introduced by Speaker Ferdinand Martin G. Romualdez, Tulfo asked Bureau of Customs Commissioner Benvenido Rubio how much is the usual landed costs of rice when a shipment of the imported staple enters the Philippines.

“Mr. Commissioner, sir, when you say landed costs, what does it include? Is it the price that they bought it from overseas and then shipping, etc., etc., taxes? Ano ang mga kasama doon sa landed costs?” asked Tulfo.

To which, Rubio answered: “Mr. Chair, the landed cost composes of the cost which includes the freight, buying price of the declared value of the goods plus collected duties and taxes from those goods, Your Honor.”

“We had an estimate of P33.4 [per kilo],” Rubio added.

Turning to the importers, Tulfo asked Atty. Irene Chiu of River Valley Distribution about the pricing chain.

“My question, Mr. Chair, for any of the importers. Importers lang po. Siguro si Ma’am Chiu, right? Do you know anything? How much from your importer, from your client, importer po siya, di po ba? Magkano po ang pasa niya sa wholesaler?”

Chiu clarified: “The rate that we sell it to our wholesaler, I was told it was P41. Noon po, before the tariff decrease, it was P48. And now po, binaba na po nila to P41.”

“P41 ang pasa po nila?” Tulfo asked. “So kasama na po doon ‘yung profit. We’re talking about kasama na po ‘yung profit, transportation, warehousing, etc., expenses. All in na po yan, P41?” he asked.

Chiu affirmed that this price applied only to wholesalers.

“Wholesaler lang po. They don’t sell to retailers,” she stated.

The congressman then questioned wholesalers. “Mr. [Gerald] Cruz, Mr. Chair, how much naman po ‘pag nakuha po ninyo? Is it the same? You’re getting the same price pagkuha ng binibenta sa inyo at P41, imported rice ng importer? Alright, P41, right? Magkano po ang pasa na ninyo sa retailer, sa mga retailer ng bigas po at P41? Magkano po ang pinapatong ninyo?” Tulfo said.

Cruz, from King B Co, responded, “Between P35 to P40 per kilo.”

Tulfo expressed disbelief at the disconnect between reported prices and market realities.

“Mr. Chair, did we invite any retailer here? We should figure out from P33 bakit wala pa akong nakikita na less than P50 per kilo na bigas? Puro P50 hanggang P60,” he lamented.

He pointed to field inspections, saying, “Pag bumili ka nga ng P45, nag-inspeksiyon kami ni Speaker, siguro para pakitang tao, P45, pero tinanong mo, eh pwede pong dalawang kilo lang ang pwede bilhin.”

Addressing the Bureau of Plant Industry (BPI), Tulfo demanded action.

“Mr. BPI, is this true what he’s saying na mas gusto nilang ng mga importers? Aren’t you considering yung mga kababayan natin na hindi maka-afford? Di ba ninyo sabihin lang, hoy importer, mag-import ka naman ng mumurahin?” Tulfo said.

He questioned why the BPI was not using its permitting power to ensure the importation of cheaper rice varieties.

Tulfo criticized the lack of effective monitoring and regulatory action.

“Pangalawang hearing na ito, and yet wala kayong malinaw na ginagawa. DA (Department for Agriculture) DTI (Department of Trade and Industry) puro kayo monitoring lang. Kailan niyo balak kumilos? Ang taas ng inflation, tapos ganito pa,” he said.

To resolve the issue, Tulfo called for a comprehensive investigation into the supply chain.

“I move that we ask the importers and wholesalers to give us the list of their clients, the retailers, para maimbita po natin sa susunod na hearing ang mga retailers,” he said.

“We need to fix this system. Ang tao ang nahihirapan. Dapat malinaw kung sino ang nakikinabang sa sistema na ito,” Tulfo said.