Thursday, March 13, 2025

The Inner Truth
Kadiwa As Bridge To Smuggling

THE BIG PUSH by the Department of Agriculture to sell imported rice (not local ones) and other basic food items confiscated from the ports by Customs authorities in Kadiwa centers smells rather fishy to me.

Smuggling has intensified in recent months, esp. with the approach of Christmas season, and the DA has been confiscating what it calls imported products without the necessary permits from agencies like the bureaus of plant industry (rice, veggies and fruits), animal industry (pork, chicken, and beef cuts) and fisheries (for fisheries and aquatic products) yet most of these are being impounded in ships after weeks that consignees do not claim them.

Instead of allowing these to rot, the DA asked the BoC to release the rice stocks for victims of calamities and other emergencies but the bulk goes to Kadiwa stores, purportedly to be sold to low-income consumers.

Into Whose Pocket

But what is surprising is that in previous Kadiwa operations (of President Marcos, Sr.), the Kadiwa placed a purchase limit of two to five kilos per buyer to ensure that more people will be able to benefit from cheaper rice.

In today’s Kadiwa operation – which by the way also expanded to MRT North EDSA and LRT Monumento stations – there is no limit to the volume of rice to be bought and the DA even allows merchants to resell them which makes it suspicious. 

Exactly what volume of smuggled and seized rice are we talking about for the Kadiwa outlets? Are they really smuggled or just being seized by the government for its own coffers or for someone else’s pocket.

Exactly what volume of smuggled and seized rice are we talking about for the Kadiwa outlets?

Ensured Access

The Kadiwa was conceived during the time of Marcos Sr. to ensure a ready market for local producers of food crops like vegetables, fruits and rice to be sold to low income consumers with volume limits so that more can buy these items. 

The DA has been hyping that it would be adding 71 more Kadiwa stores by the end of December. There are 108 existing KNP (Kadiwa ng Pangulo)  centers nationwide, which DA aims to increase to 179 by December and 300 by mid-2025 with the ultimate goal of reaching 1,500 KNP centers by the end of the Marcos administration.

As instructed by the President, the DA must ensure accessibility and strengthen KNP operations so more people can buy food products at lower than prevailing market prices.

Prices of agricultural products normally spike after the onslaught of typhoons due to problems with supply. And with the Yuletide just around the corner, prices have been soaring because of heavy demand and short supply from the damage wrought by the typhoons.

Laundering?

The expansion of KNP centers can be done in partnership with other government agencies, such as the Philippine Carabao Center (PCC) and National Housing Authority (NHA) which offer venues that can be converted into KNPs.

The DA is also eyeing the Philippine Postal Corp. (PhilPost) as a major partner in reaching the target 1,500 expansion of KNP centers.

PhilPost has offices near municipal centers and near population centers and it has trucks that can be used to bring the goods to the Kadiwa stores.

Logistics-wise, Philpost is in the best position to help us be able to transport all these goods in various areas in the country, a DA official said.

With the Kadiwa, all smuggled goods seized by the government will now find their way to the legitimate market making the Kadiwa a bridge for smuggling as it legitimizes the sale of confiscated goods.

Somehow it seems to me like laundering a confiscated illegal product through a legitimate government entity, the KNP.

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