Government to review price caps after 2 weeks

MANILA — The government may be able to decide on whether it will lift the price cap on rice in the next two weeks, according to Department of Trade and Industry (DTI) Secretary Alfredo Pascual.

“Maybe (in) another two weeks we will have a good idea of the availability of supply,” Pascual said over ANC yesterday. “So maybe within two weeks we should be able to lift, or to see whether we can lift the price cap already.”

Executive Order (EO) No. 39, which was implemented on Sept. 5, imposes a price ceiling for regular-milled rice at P41 per kilo and P45 per kilo for well-milled rice.

Pascual emphasized that the imposition of the price cap for rice is not a standalone measure of the government.

“This was done alongside efforts to address the issue of hoarding, profiteering and cartelization,” he said.

The DTI said earlier it would implement various forms of assistance to rice retailers/wholesalers, including small supermarkets, that will be affected by the price ceiling, in coordination with other government agencies and stakeholders. These include financial assistance, loan programs, logistics support and market linkages and support.

Over the weekend, the DTI participated in the start of the distribution of the P15,000 financial assistance for retailers affected by the rice price cap through the Department of Social Welfare and Development (DSWD)’s Sustainable Livelihood Program.

The DTI added that government would also provide transportation in delivering rice from traders to retailers to reduce logistical costs.

Market linkages will also be established to link local farmers with supermarket chains and other retailers and promote bulk buying or advance purchase of supermarkets, restaurants, hotels, resorts and other commercial establishments.

In a radio interview last week, Trade Assistant Secretary Agaton Uvero said the government is hoping that the imposition of the price ceiling on rice will not go beyond one month as it expects prices of the staple food to stabilize in three weeks.

Price caps backed

The economic team of the administration of President Marcos is in favor of the imposition of price control on rice through the issuance of EO 39.

“We agree with the President that implementing a price cap on rice is the most prudent course of action at the moment to achieve two critical objectives: stabilizing rice prices and extending immediate support to our fellow countrymen,” Department of Finance (DOF) Secretary Benjamin Diokno said in a statement. “However, this should not persist for an extended period.”

“This will effectively serve as an ‘active stop gap’ to address the market’s current circumstances. Conditions truly warrant a special mitigating measure,” Budget Seretary Amenah Pangandaman said.

“In an ideal scenario, we can let the market dictate prices. However, as NEDA noted, we are now faced with extraordinary factors that we have to consider,” Pangandaman explained.

The budget secretary likewise reiterated the unified stand of the economic team on the price ceiling, saying that it is indeed a necessary albeit temporary measure to help vulnerable and disadvantaged sectors amidst high prices of rice.

“We understand and fully support the decision of the President because there really are market players who have been misbehaving. Unfortunately, there really are hoarders and speculators. We needed to act fast to effectively address this problem with a tit-for-tat strategy against unscrupulous traders, at least in the near-term,” Pangandaman said.

“As what Secretary Ben Diokno said, this will serve as an effective measure against non-competitive practices by market players. We just have to carefully calibrate, implement and monitor it,” she added.

Diokno earlier said the Inter-agency Committee on Inflation and Market Outlook remains on top of monitoring the developments in food and non-food inflation. It will also closely monitor the implementation of EO 39 to help ensure that the short-term measure will be effective.

“The economic team remains resolute in its commitment to mitigate the impact of inflation and help protect our consumers, retailers and farmers,” Pangandaman said.

“We will put prime importance to the protection of our vulnerable sectors. We will help ensure the fast implementation of the government’s targeted cash transfer program, the fuel subsidy program for qualified workers in the transportation sector, subsidies to registered small rice retailers as well as other programs that will help aid our kababayans,” she emphasized.

Aid distribution

The DSWD started yesterday the distribution of P15,000 cash aid to rice retailers affected by the price limit in public markets in Zamboanga del Sur, Pateros and the cities of Navotas and Parañaque.

In a statement, DSWD Secretary Rex Gatchalian said it was the Department of Agriculture (DA) and the DTI who identified the 337 beneficiaries of the cash assistance – 15 in Pateros, 161 in Navotas, 129 in Parañaque and 32 in Zamboanga del Sur.

Last Saturday, the agency kicked off the release of the cash aid in Quezon City, San Juan and Caloocan City.

Decisive

In Congress, lawmakers have acknowledged the government’s “decisive” action against suspected hoarders, along with the ceiling on the prices of rice, as among the reasons why prices of the staple have gone down.

“Their decisive actions, notably the implementation of a price ceiling on rice, have been instrumental in upholding stability in this vital commodity, even amidst the turbulent tides of the global market,” said Quezon Rep. Mark Enverga, chair of the House committee on agriculture and food.

Albay Rep. Joey Salceda, who heads the House ways and means committee, said the price ceiling and subsequent raids conducted by Speaker Martin Romualdez “brought some sanity back to the trading of rice.”

“The cap ended the rice price spike. It is now clear that soaring cost of the grain is artificial, driven by market speculation and rice traders driven by greed.” Salceda said. (philstar)