PANIC BUYING AND RICE RATIONING IN CAGAYAN DE ORO, DAVAO CITIES
Panic buying and rice rationing starts in cities of Davao, Cagayan de Oro
06/02/2008 | 01:17 AM
DAVAO CITY, Philippines — Panic buying of government subsidized rice has started in Mindanao, specifically in the cities of Davao and Cagayan de Oro.
While Davao’s National Food Authority (NFA) office has restricted selling of government rice to one kilo daily per buyer, panic buying has started in Cagayan de Oro City’s largest public market on Sunday morning.
In Cagayan de Oro’s Cogon market, thousands trooped to NFA rice outlets in reaction to rumors that prices of state-subsidized rice would be increased this coming week from the current price of P18.25 per kilo.
In previous days, commercial rice varieties here have also increased as private traders reduced release of their stocks to retailers.
Only two retailers in the Cogon public market were selling government rice. The NFA is providing additional stocks to accommodate the long line of people.
In Davao City, the NFA ordered all its accredited outlets to limit rice purchases to one kilo per family as officials try to contend with the growing number of people queuing up to buy cheap rice.
Rogelio C. Chio, NFA regional executive director, traced the anomaly to millers who stopped their operations because they were expecting prices to go up. Other than that, Mr. Chio said they are at a loss as to why the price of rice increased by P10 per kilo “in less than a week.”
Salvio F. Arguelles, auditor of the Grains and Retailers Confederation (Grecon), traces the perceived supply of rice in the city to “rumors” which could be quelled with correct information by government agencies. — G. P. Alba and J. B. Escovilla, BusinessWorld
