DTI exec to rice retailers: Gov’t needs your 'sacrifice'

Rice retailers, who will be forced to sell their stocks at lower prices due to the government-imposed price caps on the food staple, were told to “sacrifice” profits for the meantime amid the skyrocketing prices of the commodity.

“Hinihingi ng pamahalaan ‘yung sakripisyo ng mga retailers, tumulong din sila,” Department of Trade and Industry (DTI) Assistant Secretary Agaton Uvero said at the Saturday News Forum in Quezon City.

(The government is asking for the sacrifice of retailers, they should help as well)

“Based sa computation, namin pwede kasing ibenta, siguro hindi naman lugi, pero wala lang kita…Tama, kailangan magsakripisyo ‘yung mga rice retailers natin,” Uvero said.

(Based on our computation they can sell, maybe not at a loss, but no profit… Right, our retailers need to sacrifice.)

President Ferdinand Marcos Jr. approved the joint recommendation of the Department of Agriculture and the DTI to set price ceilings on rice in the country, according to Executive Order No. 39, signed by Executive Secretary Lucas Bersamin.

The mandated price ceiling for regular milled rice is P41 per kilo while the mandated price cap for well-milled rice is P45 per kilo, according to the EO.

Trade Secretary Alfredo Pascual had said that the price caps were computed based on the average rice prices for the last three months —May, June, July, pursuant to the Section 8 of Republic Act No. 7581 or the Price Act for the setting of price ceiling.

Marcos’ approval of the price ceiling stemmed from the surge in retail prices of rice in local markets. Current prices of rice per kilo range from P45 to P70.

The order takes effect on Tuesday, September 5, 2023.

The price ceilings shall remain in effect unless lifted by the President upon the recommendation of the Price Coordinating Council or the DA and DTI.

In an interview on Dobol B TV, Philippine Chamber of Agriculture and Food Inc. (PCAFI) president Danilo Fausto said the price caps should be “temporary” and should only last at least a month or two.

The PCAFI chief also warned that retailers might opt not to sell rice at all because of the expected losses due to the price cap.

“The government should be prepared to have an alternative source for our consumers [kung sakaling] hindi magbenta ang mga tao dahil malulugi sila…,” Fausto said.

Uvero said the imposition of the price cap “may be shorter than the usual 60 days… period for price freeze.”

“This is just a temporary meassure… sooner than later maayos din ito,” the DTI official said, noting that the harvest season is already coming.

Meanwhile, a group of rice traders has expressed readiness to cooperate with the government in implementing the executive order imposing caps on rice prices.

The Philippine Rice Industry Stakeholders Movement (PRISM) said the group will be working with the government to provide the consumers with affordable and quality rice.

“Sa kabila po nito ay patuloy pa rin po kaming nakikiusap, at nakikipag-usap rather, at in partnership with the President and the government, together with the DA, at ang ating pamahalaan. Ang gusto po natin ay magkaroon ng maayos na bigas sa ating pamilihan, na mabigyan po natin ng tamang presyo, na kung ano po ‘yung hinihiling sa atin,” said PRISM lead convenor Rowena Sadicon.

In a phone interview, Grain Retailers Confederation of the Philippines spokesperson Orly Manuntag said that while retailers will sacrifice for the meantime, the government should also help in sourcing cheaper rice.

“Saan magso-source ng pambenta ng P41 saka P45 para maibenta ng retailer sa ganitong presyo. Parang tulungan… Huwag nating pahirapan yung retailers din naman natin,” Manuntag said.

“Mahapdi sa kanila ‘yan eh… Magbabayad pa sila ng pwesto, ang nakikita natin diyan is tulungan natin,” said Manuntag.

Artificial shortage, hoarders blamed

The DA had disclosed its projection that rice supply for the second semester would reach 10.15 million metric tons (MMT), 2.53 MMT of which is ending stock from the first semester while 7.20 MMT is the expected yield from local production and only 0.41 MMT is imported rice.

The DA said also that the total supply would be "more than enough" to cover the current demand of 7.76 MMT and will yield an ending stock of 2.39 MM that will last up to 64 days.

The EO further states that the DA and the DTI “have reported that the country’s rice supplies have reached a stable level and are sufficient owing to the arrival of rice imports and expected surplus on local production.”

“Extraordinary ang price surge so malinaw na may ebidensiya ng hoarding, profiteering, and price manipulation,” Uvero said.

“Hindi po nagkukulang ng supply, iniipit po ang supply natin,” the DTI official said.

Marcos has also directed the Philippine Competition Commission, in coordination with the DA and the DTI, to implement measures against cartels or those abusing their dominant position in the market to ensure fair market competition and uphold consumer welfare and protection.

The President earlier directed the Bureau of Customs to intensify its inspections and raids of rice warehouses to combat the alleged hoarding and illegal importation of rice in the country. —VAL, GMA Integrated News