Philippines' Arroyo orders raids on rice hoarders

PHILIPPINES: Philippine President Gloria Arroyo on Tuesday said the government will clamp down on rice hoarders who artificially jack up the commodity's price amid a looming supply crunch.

Arroyo noted that the Philippines, is a "price sensitive nation" that feels the strains of pressures from a globalized economy.

"I am asking traders not to jack up prices just because there is a crisis," Arroyo said. She said she has ordered Agriculture Secretary Arthur Yap to stake out all government warehouses "so he can follow the big 10-wheeler trucks and see where they are bringing rice."

"He is investigating all warehouses, watching them, re-licensing them. He shall hit the hoarders," Arroyo said.

Rice, the country's staple food, is a politically sensitive crop in the Philippines and fears of a looming shortage could cause unrest of other problems for Arroyo, analysts have said.

Last week, the National Food Authority, the state's rice-importing agency, announced it had bought some 335,000 tonnes of rice mainly from Vietnam, Thailand and Pakistan to avoid any crisis in the months to come.

Officials have said the government was having difficulty sourcing supplies of up to 1.8 million tonnes of rice this year, with prices skyrocketting due to rising demand and tight inventories around the globe. Manila, Tuesday, AFP