P126-M Smuggled Rice Seized In Negros

[Jack Peterson]

:unsure:  So just what is it with Rice that  makes this Sensational.

 

http://www.abs-cbnnews.com/nation/regions/04/05/15/p126-m-smuggled-rice-seized-negros

 

Is Rice to become like, Drugs Tobacco, Spirits and even Vehicles, that it is a High Risk movement of such. 

or is someone not getting their share of whatever it is that makes this a Story worthy of front page news?

 

just asking 

 

JP :tiphat:

[Dave Hounddriver]

It seems strange.  If rice is subsidized here, then illegal imported rice would cost more than the subsidized NFA rice?

[Jack Peterson]

It seems strange.  If rice is subsidized here, then illegal imported rice would cost more than the subsidized NFA rice?

 my Thoughts as well but................................ :1 (103):

[Kuya John]

Maybe we should stop the rubber tree planting and turn to rice production :thumbsup:

Tell you what might be the next big thing, water production.........http://www.dailymail.co.uk/news/article-2994985/California-run-water-reserves-year-begin-rationing-precious-resource-immediately-NASA-scientist-says.html?ITO=1490&ns_mchannel=rss&ns_campaign=1490

 

I heard that it takes  9 bottles of water to make 1 bottle of cola!

 

http://www.quora.com/I-have-read-that-it-takes-9-liters-of-water-to-produce-1-liter-of-Coca-Cola-Is-it-true

Edited April 5, 2015 by Kuya John

[Thomas]

It seems strange.  If rice is subsidized here, then illegal imported rice would cost more than the subsidized NFA rice?

Rice trading is HARD REGULATED in Phils  (but not for brown rice to CUSTOMERS it seem, because no values told for such where regulation prices for other rice types are told. Perhaps that's why the brown rice price to customers is so unproportional high.)

(As I have understood it) the traders and resaler prices are MAXIMUM prices to customer,

while the government GUARANTEE a MINIMUM price the farmers get to try to make them produce MORE rice  (Last I saw was 17:40 per kg guaranteed.)  So IF Malaysian rice (not milled) cost less than 17:40 including transport to Phils, it can be profit to smuggle it. If not get caught   :mocking:

 

Edit:  I don't know the rice price from where they smuggle, but as comparing 2014 was it  385-395 USD per Metric ton in Viet-Nam. I don't remember the USD value then, but if it was as now, then that's around 150 pesos per kg.

Edited April 5, 2015 by Thomas

[JJReyes]

The way the rice system works is the palay (unhusked rice) is purchased from growers and milled. The loss is about 50% or a reduction to 1/2 sack milled rick for every one sack of palay. The price is the same and the difference comes from the national government. The subsidy is an incentive program for farmers to grow rice in a country that is highly dependent on the grain.

 

Import prohibition discourages competition with the government system. You need a license to import during time periods when not enough rice is being grown in the Philippines. The system makes no sense to a free market person because the price and quality of imported rice is much better. Suppliers include Thailand and Myanmar. Why not buy cheaper rice instead of growing it? The government fear is availability and price stability.

 

There is a similar fight between the United States and Japan. A 10 kilo sack of Japanese rice cost more than $40 retail after giving Japanese farmers a huge subsidy. Without subsidies, the same rice is grown in the United States and sold for less than $20 for a 20 lbs sack.

 

We drove through a rice growing area in Texas and I couldn't believe the size of the rice grain silos.

Edited April 5, 2015 by JJReyes

[MacBubba]

The way the rice system works is the palay (unhusked rice) is purchased from growers and milled. The loss is about 50% or a reduction to 1/2 sack milled rick for every one sack of palay. The price is the same and the difference comes from the national government. The subsidy is an incentive program for farmers to grow rice in a country that is highly dependent on the grain. Import prohibition discourages competition with the government system. You need a license to import during time periods when not enough rice is being grown in the Philippines. The system makes no sense to a free market person because the price and quality of imported rice is much better. Suppliers include Thailand and Myanmar. Why not buy cheaper rice instead of growing it? The government fear is availability and price stability. There is a similar fight between the United States and Japan. A 10 kilo sack of Japanese rice cost more than $40 retail after giving Japanese farmers a huge subsidy. Without subsidies, the same rice is grown in the United States and sold for less than $20 for a 20 lbs sack. We drove through a rice growing area in Texas and I couldn't believe the size of the rice grain silos.

 

Hard to believe that the Philippines was once a major rice producer in Asia, and UP Los Banos was the leading institution for rice agriculture.

[JJReyes]

Hard to believe that the Philippines was once a major rice producer in Asia, and UP Los Banos was the leading institution for rice agriculture.

 

The hybrids developed at the International Rice Research Institute (IRRI) in Los Banos are highly dependent on chemical fertilizers. 

 

Philippines has become an importer rather than an exporter of rice. One reason is the large population. Another is Agrarian Reform. Fields planted to rice and corn are/were subject to confiscation and turnover to poor tenant farmers. When the program got started, large landowners received Land Bank bonds with a 50 years maturity (i.e., you can cash them in 50 years). So landowners converted their properties to other uses like pasture land.    

[DavidK]

Any country which subsidises a staple commodity and doesn't produce enough of it is liable to smuggling of said commodity. The subsidy usually makes imported crop cheaper than buying local and can therefore be sold at the local price for a higher profit. Separately the issue of import licences then becomes political and an opportunity for someone to benefit (generally whomsoever is in a position to issue said licence). I've seen similar in another Asian country with regard to sugar. 

[Steve & Myrlita]

As usual, it's only about the money.