NEDA backs rice price ceiling

The National Economic and Development Authority (NEDA) on Sunday expressed its support for the price ceiling on rice across the country following the continuous increase in prices reported in local markets.

According to the NEDA, the price ceiling — ordered by President Ferdinand “Bongbong” Marcos Jr. through Executive Order 39 — was only meant as a temporary measure that would be complemented by other government initiatives.

“The imposition of a price ceiling on rice is not a standalone initiative. Law enforcement authorities continue their valiant efforts to crack down on individuals who hoard, excessively profit from, smuggle, or participate in rice cartels,” NEDA said in an emailed statement.

“We are confident that the imposition of a price ceiling is only a temporary measure. We expect the rice harvest to commence soon and anticipate that other initiatives will produce the desired result,” it added.

The Executive Order mandates a price cap of P41 per kilogram for regular-milled rice, and P45 per kilogram for well-milled rice effective Tuesday, September 5, 2023.

Latest data available from the price monitoring of the Department of Agriculture (DA), also headed by Marcos, shows that prices of rice in Metro Manila range from P42.00 to P65.00 per kilogram for the local commercial rice, and from P43.00 to P65.00 per kilogram for imported commercial rice depending on the variety.

This compares to P38.00 to P50 per kilogram for local commercial rice and P37.50 to P50.00 per kilogram on June 30, 2022, when the Marcos administration was sworn into office.

To recall, Marcos during his campaign said he would recommend a price cap on rice to bring down prices to as low as P20 per kilogram. He later explained that this was an aspiration hinging on fixing the value chain.

A number of stakeholders, including advocacy groups have since expressed concern that the retail price ceiling on rice could result in lower farmgate prices of the commodity, which in turn could be detrimental to the livelihood of farmers.

For its part, NEDA cited the Rice Competitiveness Enhancement Fund (RCEF) as assistance to local farmers, as the law provides a P10-billion fund to be utilized for grants to provide farmers with equipment to improve farm mechanization.

The RCEF is mandated by the Rice Tariffication Law which took effect on March 5, 2019, effectively imposing 35% tariffs on imports from neighbors in Southeast Asia. It was signed into law by former President Rodrigo Duterte in February of the same year. — DVM, GMA Integrated News