MANILA, Philippines — Perceived flip-flops in the Marcos administration's economic strategy to curb soaring rice prices have prompted Sen. Risa Hontiveros to file a Senate resolution seeking a probe into the government's policies on rice regulation.
In filing Senate Resolution 794, Hontiveros described the actions and proposals of the Marcos administration — particularly the setting of a price ceiling and removal of tariffs on rice — as "uncoordinated" and "contradicting.”
"There is an evident lack of leadership, coordination and cohesion in the country's policies on rice regulation, to the grave risk and detriment of the people,” the Senate resolution read.
President Ferdinand “Bongbong” Marcos Jr. on September 1 ordered the imposition of a price ceiling on rice ranging from P41 per kilogram (regular milled) to P45 per kilogram (well-milled).
The price ceiling was the government's answer to an increase in the price of locally produced and imported rice, according to Executive Order 29, with prices going up by 4% to 14% in August.
Following the implementation of EO 39, the Department of Finance made a proposal to temporarily reduce rice tariff rates to zero percent with the hopes of bringing in a huge volume of rice imports amid fears of a shortage of the food staple.
Price caps, tariffs
Marcos did not consult with his economic managers before issuing EO 39 or the rice price ceiling, Hontiveros pointed out in her Senate resolution.
Finance Secretary Benjamin Diokno, who has defended the price cap despite economists' criticisms that it would result in rice retailers' loss, recently bared that he was "shocked" when the measure was announced on August 31.
Hontiveros also cited a former undersecretary of the agriculture department — which Marcos heads concurrently — who said that the price cap would lead to a shortage of the household staple.
This would make rice “even less rice even less accessible and risking critical supply gaps which hurt the poorest of Filipinos most,” Hontiveros added.
The opposition senator also criticized the DOF's proposal to temporarily drop tariff rates to court more rice imports, saying that this goes against the administration's past pronouncements bolstering the need for "government-to-government" importation of rice.
Farmers’ group Kilusang Magbubukid ng Pilipinas (KMP), which has criticized EO 39 for being a paltry response to soaring rice prices, said that the Department of Agriculture must instead suspend Republic Act 11023 or the Rice Tariffication Law to allow the National Food Authority to more strictly regulate the rice industry.
"The DOF's suggestion of a zero tariff on imported rice will not be a solution but will result in a new problem. Only rice smugglers will surely benefit from this because it will be easier to bring in smuggled rice if the tariff is completely removed. It's like the government is giving a green light to widespread smuggling," KMP chairperson Danilo Ramos said in Filipino.
The farmers’ group said that with the price ceiling in effect, “regular milled and well-milled rice are no longer available in markets and rice retailers.”
“Small retailers have found that they cannot sell the rice they bought from traders at a lower or losing price,” the group added.
Department of Trade and Industry (DTI) Secretary Alfredo Pascual said on Monday that the rice price cap will remain in effect for another two weeks before the government reviews the policy.
“I’m confident (that) with the harvest season commencing, we are looking at five million metric tons of rice between now and by the end of October, I think we are not in a rice emergency so to speak,” Pascual said.