‘GG’ no longer poor man’s fare

This refers to Kristine L. Alave’s article titled “Don’t belittle ‘GG’: It’s now imported.” (Inquirer, 1/30/12)

Indeed, it is heartrending to know that the lowly galunggong, the poor Filipino’s dish, is being priced out of his table. What makes this more outrageous is that its price is manipulated by monopolies with the apparent support from the Bureau of Fisheries and Aquatic Resources (BFAR) and the Department of Agriculture.

Unknown to many and as admitted now by BFAR officials, the importation of galunggong and other marine products has been going on for years—authorized through government import permits issued to only a few importers selected and preferred by the BFAR-DA. The constricted flow of fish supply and the consequent rise in prices abet smuggling as well as the monopolization of the fish trade.

Worse, the BFAR-DA-preferred fish importers also enjoy the privilege of duty and tax exemption, purportedly pursuant to a trade agreement between the Asean and the People’s Republic of China. BFAR officials should explain why the import permit specifies mackerel but the Customs examination shows that the imported fish is galunggong.

In view of the entry of imported fish (although limited in volume), it is our view that the Department of Trade and Industry (DTI) chose the wrong formula in setting the Suggested Retail Prices (SRP) for fish. The agency should take into account that the landed cost of galunggong, as declared in Customs entries filed by the importers, is only P19.50 per kilo. Allowing a 100-percent mark-up for local distribution costs and a very generous profit margin, the SRP for galunggong should only be P40 per kilo.

The monopolies’ stranglehold on the country’s food supply is limited not only to fish but to other commodities such as rice, sugar, beef, pork, chicken, onions and garlic. These are products that are often smuggled because their high prices make illegal trade a very lucrative enterprise. Based on the import declarations or entries covered by import permits, the prices of basic commodities in the country should be slashed by as much as 60 percent of their current prices.

The increasing number of hungry Filipinos underscores the urgency to reduce the cost of living in the country. The first step toward this end is the abolition of monopolies in the food industry and to ensure that there is free and fair competition among players as practiced in open-market economies. Any improvement toward the rationalization of the prices of food products will cushion the adverse effects of the current uncertainties in the fuel/oil supply. Consumers will not complain much if food is in ample supply and affordable. A situation like this will even ease the need for government subsidies for the poor and transport groups.

—DOMINADOR B. MONDRAGON, JR.

president, Consumer Rights Organization Philippines Inc.

[email protected]