Food shortage looms on price freeze order

CEBU, Philippines - The Department of Trade and Industry Central Visayas office (DTI-7) noted no disparity in the prices of goods in the region since President Gloria Macapagal Arroyo issued the “price freeze” directive to give leeway to those affected by the calamity that hit the country recently.

“It seems that retailers here have strictly adhered to the directive,” said DTI-7 division chief Josh Carol Ventura.

Ventura said so far retailers in Cebu have fully complied with the government’s pronouncement for “price freeze” although some have expressed worries on depleting supply especially for noodles and sardines.

She said supply of basic commodities, specifically sardines, noodles, coffee refill, among others will be affected although Cebu is not hit from the calamities, because supplies of these goods come from Manila.

DTI-7 announced recently that it will strongly implement the Price Act or Republic Act 7581, declaring a price freeze on all basic necessities.

This is in response to the Proclamation No.1898 recently signed by President Gloria Macapagal-Arroyo declaring the entire country under the state of calamity.

With the signing of Proclamation No. 1898, prices of basic goods are effectively controlled by the Department of Trade and Industry, giving the agency the power to freeze prices of basic commodities at their prevailing prices. Products identified in the “price freeze” include canned sardines, processed and powdered milk, detergent and laundry soap, bread, salt and coffee refill.

Retailers are warned by the DTI to observe the price freeze in all brands of listed commodities to avoid sanctions: maximum of 10 years imprisonment and fine of P1 million.

On the other hand, Ventura also said that Central Visayas office is waiting for the official directive from the DTI head office on the imposition of the mandated price ceiling which is reported to take effect in two years.

She said the mandated price ceiling on certain goods will help educate consumers today on which products that retailers are not allowed to impose higher prices on.

“Given the hard times, and in light of recent economic developments, it pays to know which items are covered under the mandated price ceiling,” said Ventura.

She however, clarified that the mandated price ceiling is different from that of the automatic price freeze recently imposed by President Arroyo under Republic Act 7851 or the Price Act, in light of the mishap that befell northern Luzon, placing the entire country under a state of calamity.

An issuance of a state of national calamity, under the law, will automatically impose a price freeze on identified basic goods.

According to Ventura, the Price Act is effective no longer than 60 days, “but the law did not indicate the duration of the effectivity of the mandated price ceiling.”