Price manipulation not at farmgate level, Agriculture department says
THE Department of Agriculture (DA) said prices of produce are stable at farmgate level and any irregular price movements are taking place at the distribution and retail levels.
Agriculture Secretary Emmanuel F. Piñol said prices at farmgate are stable and that he expects “the Department of Trade and Industry (DTI) to strengthen its price monitoring. Even the DA, with the help of the DTI, should intensify price monitoring.”
Mr. Piñol, in a social media post on Tuesday, also reiterated that the rising prices are due to speculation of inadequate supply.
“What needs to be done now is for government to exercise its full powers in checking profiteering and price manipulation in the market,” he said.
Both the DTI and the DA began joint market monitoring in wet markets after the DA imposed suggested retail prices on eight farm goods in June.
Among the measures pursued by the DA were the importation of 117,000 metric tons (MT) of round scad, or galunggong, to be directly sent to wet markets, and the lifting of the security safeguard measures for poultry to lower chicken prices.
A security safeguard measure is intended to protect domestic producers by temporarily restrict imports of a commodity.
“Shortly after the lifting of the SSG for poultry, the farm gate prices of broiler chicken which was at P95 per kilo a week before, steadily went down,” Mr. Piñol claimed.
“Poultry raisers rang alarm bells as the farm gate price plummeted to P77 per kilo [on Tuesday], threatening the profitability of the industry,” he added, noting that the retail price for chicken as observed by DTI, however, remained unchanged.
Data from the Philippine Statistics Authority showed that both chicken and hog posted increase in production to by 4.47% to 462,335 MT and 2.81% to 557,270 MT, respectively, in the second quarter.
This was attributed to better facilities in broiler farms for poultry and better farmgate price for pork.
Average farmgate price for live hogs for slaughter went up by 7.65% to P117.88 per kilogram (kg) while average farmgate price for broiler chicken posted a 0.45% increment to P86.76 per kg.
The two commodities are seen to have a steadily increasing demand by the last quarter, spurred by the holiday season.
The DA gave importers who did not utilize their Minimum Access Volume allocations the ultimatum to bring in their goods before August ends to avoid further increase of prices in the market.
Despite this, the DA junked the proposal to lower tariffs which Mr. Piñol earlier said can be detrimental in the long term as it would put local production at risk of lower priced imports.
Instead, the DA will be adding more commodities in the list of other farm goods with SRPs.
“This would be [imposed] before the “-ber” months [hit],” Mr. Piñol added.