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PPA denies port congestion caused rice prices to remain high
PPA denies port congestion caused rice prices to remain high
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PPA denies port congestion caused rice prices to remain high
by Kristan Carag22 September 2024
Trucks transporting containers with imported items are prepared to leave a port in Manila, Philippines May 25, 2016. REUTERS/Erik De Castro

The Philippine Ports Authority (PPA) denied that port congestion causes rice prices to remain high.

Rather than port congestion, PPA General Manager Jay Santiago placed the blame on the importers since they refuse to collect their shipments even with clearance from the Bureau of Customs (BoC).

Santiago mentioned that two terminals in the Port of Manila have 888 containers cleared by the BOC but remain uncollected for more than 10 days.

"Bayad na taripa, bayad na ang buwis niyan, ang hinihintay na lang ay sundiin na ng mga consignee niya," Santiago stressed on Friday, September 20, during DZRH's Dos Por Dos.

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Upon investigation, Santiago said that PPA found out that importers tend to pull out the shipments when rice prices go up, and leave them unattended when market rates go down.

"Sa ating pagtatanong at pag-analyze, mukhang historically, makikita natin na yung pag-pull out ng mga container na iyan ay bugso-bugso natin doon sa mga panahon na medyo tumataas yung presyo ng bigas," he explained.

Santiago assured that PPA coordinates with the Department of Agriculture (DA) in order to monitor shipments cleared by the Customs, and compel importers to pull out rice imports from ports within a certain time period.

He noted that PPA found a shipment that have been staying at a port for more than 270 days, or more than eight months.

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Santiago also shared plans to impose additional penalties on rice shipments that overstay on ports.

He further pointed out that Republic Act No. 10863, also known as the Customs Modernization and Tariff Act, allows the auction any shipment cleared by the BoC but remains uncollected.

"Tayo din ay makikipag-coordinate sa Bureau of Customs tungkol dito sa mga overstaying container, particular na sa mga bigas, para mapakinabangan na," Santiago said.

Santiago also mentioned that the port utilization rate of the Port of Manila remains at 70 percent.

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"Umaakyat lang iyan ng 91 percent hanggang 92 percent kapag panahon ng Pasko hanggang Chinese New Year," Santiago remarked.

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