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  • Rice emergency, limited NFA rice sale mulled
     
    By Joel San Juan and Mia Gonzalez
    Reporters

    PRESIDENT Arroyo may declare a rice and corn emergency if the perceived shortage in the country’s rice supply continues.

    In an interview, Justice Secretary Raul Gonzalez told reporters that under Republic Act 3452, which provides measures to stabilize the price of palay, rice and corn, among others, the President is empowered to initiate drastic measures to ensure consumers of continued rice supply.

    In another development, the government may stop selling NFA rice in public markets and limit its distribution to poor communities to ensure that it reaches the intended beneficiaries and discourage its commercial sale by unscrupulous traders, President Arroyo announced on Thursday.

    The President, who was in Pilar, Abra, to launch a local agricultural project, said concerned agencies are tweaking the plan as part of the government’s action plan to ensure the stable supply of affordable rice in the country.

    “We are toying with the idea of stopping the release of NFA rice through the public markets. They will be released in the depressed communities because the price differential of the subsidy has become too big. The temptation to divert has become too big as well,” she said.

    “NFA rice and commercial rice are almost of the same in quality. So what happens is we have caught several, sad to say, NFA officials conniving with traders and they divert NFA rice, which is supposed to be for the poor [and sell it as] commercial rice. You can’t tell the difference because they are almost the same. It has to be in the outlets that are different,” she said, explaining the rationale for the planned limited distribution of NFA rice.

    According to Gonzalez, under Section 12 of RA 3452, the President is authorized to declare a rice and corn emergency any time she deems it necessary in the public interest. Under such an emergency, the government can control all stocks, whether private or public, and distribute it as it sees fit.

    The provision says that during the emergency period, the President can direct, subject to constitutional limitation, the National Food Authority “to conduct raids, seizures, and confiscation of rice and corn hoarded in any private warehouse,” provided the agency will pay such confiscated rice and corn at the prevailing consumer’s price. 

    Gonzalez said, however, there is no need right now for an emergency declaration as supplies of rice are still stable. Still, he added, the government will not wait for the situation in India, Jamaica and in Haiti—where riots have erupted—to happen in the country before it declaring an emergency.

    On Thursday, Gonzalez met National Bureau of Investigation (NBI) officials on how to enforce laws against rice-hoarding.

    Gonzalez defines hoarding as having “50 percent more than your currently needed supply.”

    The DOJ secretary earlier disclosed that President Arroyo has given law-enforcement agencies the go-ahead to take over warehouses of rice traders who insist on holding a rice holiday.

    Gonzalez cited provisions in the 1987 Constitution that will protect the general welfare from emergencies, including “artificial” shortages.

    “We can cite Section 17, 18 and 19 of the general welfare provision of the Constitution.  If there is a situation like an artificial shortage, the government can take over,” he said.

    While they are reportedly similar in terms of quality, commercial rice is almost twice the price of NFA rice, which sells at P18.25 per kilo, tempting some traders, in connivance with NFA officials, to sell the government-subsidized rice as commercial rice.

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