Marikina City 2nd district Rep. Stella Quimbo (Ellson Quismorio/ MANILA BULLETIN)

Marikina City 2nd district Rep. Stella Luz Quimbo has debunked the Department of Agriculture's (DA) claim that the agency is powerless to stop the soaring prices of rice, which is the Filipino staple food.

Speaking during the hearing of the House quinta-commiittee (quinta-comm) on Wednesday,  Dec. 11, Quimbo noted that the DA has significant powers under the Price Act, as well as the amended Rice Tariffication Law to address price manipulation, hoarding, profiteering and cartels in the rice industry.

“In other words, huwag niyo po sanang sasabihin na wala po kayong kapangyarihan na habulin ang mga taong nagsasabwatan at pinapataas ang presyo ng bigas dahil hindi po totoo ‘yan,” Quimbo told DA Undersecretary Asis Perez, who represented Secretary Francisco Tiu Laurel during the latter part of the hearing.

Laurel, who was present earlier in the proceedings, claimed the DA lacked authority to address high rice prices and urged Congress to pass legislation that would grant the agency stronger powers against price manipulation, profiteering, and other exploitative practices in the agricultural sector.

Quimbo, however, pointed to Section 10 of the Price Act, which she said clearly empowers the DA as the implementing agency for rice. The law allows the department to conduct investigations, impose fines of up to P1 million, seize basic necessities and initiate prosecutions.

“Nakasulat po dito, kayo ay implementing agency and pwede kayong mag-conduct ng investigation, pwede po kayong magmulta. ‘Yun po ang naka-indicate dito. Tama?” Quimbo asked. 

(It's written here, you are the implementing agency and you can conduct investigations, you can impose fines. That's what's indicated here. Correct?)

Perez replied, “If it’s in the law, then that’s it, Madam Chair.”

Like her fellow House members who took part the hearing of the so-called Murang Pagkain Supercommittee, Quimbo demanded for answers as to why rice remained costly despite an oversupply and recent tariff reductions under Executive Order (EO) No. 62, which slashed import duties from 35 percent to 15 percent.

She even cited data that showed the landed cost of rice decreased from P34.21 per kilogram in July to P33 in December. 

Laurel asserted that the weaker peso offset the reduction--something that Quimo didn't agree with.

"The world price of rice dropped enough to offset the peso’s depreciation. The weakening of the peso is not a valid excuse," said the economist and senior vice-chairperson of the Committee on Appropriations. 

Department of Finance (DOF) Director Jolly La Rosa supported Quimbo’s position, and said that the global drop in rice prices outweighed the peso’s depreciation.

Quimbo also reminded the DA of its authority under the amended Rice Tariffication Law (RTL). She said it allows the agency to declare a food security emergency and use P5 billion in funds to stabilize rice prices.

“You can use P5 billion to intervene in the market. Puwede kayong mag-import at gamitin ‘yan, ibenta ninyo katulad ng ginagawa niyo today, magbenta ng bigas at P42,” she explained.

(You can use that to import rice, then sell it for P42 a kilo like what you do today.)

She also stressed the DA’s ability to collaborate with other entities, such as the Philippine Competition Commission (PCC), under its existing memorandum of agreement. 

“Please confirm that you also see it in the law. And in addition, you may deputize and enlist the assistance of any government official or agency in carrying out the provisions of this Act,” Quimbo said.

Quimbo urged the DA to exercise its full authority and hold traders accountable for unjustified price hikes. 

“Huwag na huwag po natin sasabihin sa ating mga kababayan na kayo po ay powerless (Never tell our countrymen that you are powerless)," he reiterated.