MANILA, Philippines — The mandated price ceiling on rice was not rushed and went through rigorous studies before implementation, Department of Agriculture (DA)-Bureau of Plant Industry (BPI) director Gerald Glenn Panganiban said yesterday after some retailers complained of losses.
“This was analyzed and was based on the nationwide survey and monitoring of our rice program and of the regional field offices of the DA,” Panganiban said in Filipino. “We saw, based on the study of the value chain, what the appropriate price should be in the market.”
Prior to the implementation, the DA official said storage warehouses were inspected, which showed there was adequate rice supply.
Executive Order (EO) 39, signed for President Marcos by Executive Secretary Lucas Bersamin on Aug. 31, set the price ceiling for regular milled rice at P41 per kilo and P45 a kilo for well-milled rice nationwide, effective yesterday.
The price cap will be imposed indefinitely or until prices stabilize, Panganiban said.
“We will monitor prices weekly to see if there will be changes or if prices will stabilize, after which the DA and the Department of Trade and Industry (DTI) can recommend to lift the EO,” he said.
To drive rice prices down, the DA will ensure continuous dialogue with retailers, traders and importers.
To boost production, the DA is also strengthening its credit facilities through the Agricultural Credit Policy Council.
Market inspection
On the first day of implementation, DA’s monitoring in Metro Manila markets showed retail prices of local well-milled rice ranged between P45-53 per kilo and P41-52 per kilo for regular milled.
On the other hand, prices of imported commercial rice were at P45 per kilo for well-milled while imported regular milled rice were at P43 a kilo.
A composite team from the DA and DTI also conducted simultaneous inspections in 18 Metro Manila markets.
Interior Secretary Benjamin Abalos said they did not apprehend and penalize retailers who have not yet complied with the EO No. 39 on the first day, as they are currently conducting information drive. However, the DILG will be stricter in enforcing the price cap in the next few days.
The DILG chief likewise added that this is only a temporary measure to control rice prices amid the alleged hoarding and manipulation of cartels.
Abalos inspected public markets yesterday alongside Quezon City Mayor Joy Belmonte and San Juan Mayor Francis Zamora. They said local government units are giving assistance, such as waiving or discounting rental fees in public markets, to the affected rice retailers in their localities to help enforce and cushion the effects of the rice price ceiling.
Police units are ready to assist concerned government agencies in the inspection of retailers after the government imposed price caps on rice, according to Col. Jean Fajardo, chief publicist of the Philippine National Police (PNP).
These include law enforcement operations by government agencies such as the Bureau of Customs. “If there will be operations by the BOC and other agencies, the PNP will provide assistance,” she said.
Cash assistance
The Department of Social Welfare and Development (DSWD) is ready to provide cash assistance to small rice retailers who will be gravely affected by the price ceiling on rice.
DSWD Secretary Rex Gatchalian noted he was directed by the President to use the department’s Sustainable Livelihood Program (SLP) to help small rice retailers who may incur losses due to the “temporary price cap.”
“We discussed with the President that we will use the DSWD’s SLP once again so that our small retailers affected by this temporary price cap on rice can be assisted,” he added.
Gatchalian said the SLP currently has a P5.5-billion budget, which can be immediately used to help cushion the impact of the price cap on rice, particularly among small rice retailers who have very small inventory.
According to the secretary, he was just waiting for the list of qualified small rice retailers, which will be provided by the DTI and the DA.
“Hopefully, by next week, we can conduct a payout for the sustainable livelihood grant to our affected rice retailers,” he added.
The DTI and the DA are currently coming up with a list of the affected rice traders and rice retailers who will receive the government’s assistance.
Subsidy
The P2-billion subsidy the government will provide rice retailers will most likely come from the unprogrammed fund of the 2023 national budget, Ako Bicol party-list Rep. Zaldy Co said yesterday.
“We are looking at the unprogrammed and hopefully we were able to check that there’s an available funds and at the same time DSWD Secretary Rex Gatchalian also said he also has funds. President Marcos’ priority at this point is the National Capital Region,” said Co, chairman of the House committee on appropriations.
“So far, there’s a fund available and we already talked to Secretary Rex last week,” Co explained.
For her part, Rep. Stella Luz Quimbo, senior vice chair of the House appropriations committee, filed House Bill 9030 (The Philippine Rice Emergency Response Act) that lays out a “three-pronged” approach to the alleged shortage of rice supply in the market.
The Marikina congresswoman said the first strategy is to ensure sufficient supply of the staple, followed by subsidizing businesses that will be affected by price controls and lastly, pressing charges and increasing the penalty against the manipulators creating a supply shortage.
Realign CIF
The government should realign P10.1 billion in confidential and intelligence funds (CIF) in the proposed 2024 national budget to support farmers and other local food producers, Kilusang Magbubukid ng Pilipinas (KMP) chairman emeritus Rafael Mariano said.
Under the proposed budget, Mariano said the Office of the President would have a CIF of P4.5 billion, Office of the Vice President, P500 million and Department of National Defense, P1.7 billion.
The Department of Education, headed by Vice President Sara Duterte, has P150 million CIF. — Romina Cabrera, Sheila Crisostomo, Emmanuel Tupas, Ramon Efren Lazaro, Catherine Talavera