Despite surprise, Diokno clarifies economic team backs rice price cap

Finance Secretary Benjamin Diokno on Monday clarified that the economic team supports the implementation of a price cap on rice, following his admission that they were surprised by the recent executive order.

In a statement, Diokno said the economic team views Executive Order 39 as an “essential” stop-gap measure citing the importance of having additional measures to supplement it to achieve long-term rice price stability in the country.

“We agree with the President that implementing a price cap on rice is the most prudent course of action at the moment to achieve two critical objectives: stabilizing rice prices and extending immediate support to our fellow countrymen,” he said.

“EO 39 serves as a lifeline, extending much-needed relief to Filipinos grappling with the high rice prices,” Diokno said.

President and concurrent Agriculture Secretary Ferdinand “Bongbong” Marcos Jr. earlier issued Executive Order 39 which mandates a price cap of P41 per kilogram for regular-milled rice, and P45 per kilogram for well-milled rice effective September 5 amid the rising prices.

Diokno’s statement was released after he admitted that the economic team was surprised by the announcement, as they were in Japan when it came out.

“Nasa Japan kami talaga when that was announced. Magkatabi kami ni Arsi. Nagulat nga kami, lumabas. Nagulat siyempre,” Diokno said on Friday, referring to National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan.

(We were in Japan when that was announced. Arsi and I were seated next to each other and we were surprised when it came out. Surprised, of course.)

NEDA in an earlier statement expressed its support for the price ceiling, saying this would only be a temporary measure given the coming rice harvest season.

Diokno on Monday also cited the importance of encouraging timely rice imports by the private sector, proposing the full implementation of the Super Green Lane that allows advance processing and clearance of shipments for top-qualified importers.

“We are advocating cooperating with tollway concessionaires and operators to temporarily exempt trucks catering to agricultural goods from increased toll fees, ensuring the efficient transportation of rice,” he said.

Advocacy groups have since sounded the alarm over the measure, as they said this could result in lower farmgate prices to the detriment of farmers.

Finance Undersecretary Cielo Magno also last week resigned from her post, allegedly due to her Facebook post that supposedly threw shade over the imposition of the rice price ceiling. Malacañang said the termination of her appointment was “expected,” as she “clearly does not support the administration and its programs for nation building.”

Meanwhile, the government told rice retailers to “sacrifice” their profits in the meantime, adding that violators of the price cap could face fines of up to P1 million.

The government is also set to release P15,000 cash grants to rice retailers affected by the implementation of the rice price ceilings.—AOL, GMA Integrated News