Marcos sets nationwide price ceilings on rice

President Ferdinand "Bongbong" Marcos Jr. has approved the imposition of price ceiling on rice across the country amid the skyrocketing prices in local markets.

Signed by Executive Secretary Lucas Bersamin, Executive Order No. 39 states that Marcos approved the joint recommendation of the Department of Agriculture (DA) and the Department of Trade of Industry (DTI) to set price ceilings on rice in the country.

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.

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.

Section 7 of the Republic Act No. 7581 states that the President, upon the recommendation of the implementing agency, or the Price Coordinating Council, may impose a price ceiling on any basic necessity or prime commodity in compliance with the conditions set by the law.

The EO indicates that the mandated price ceilings shall remain in full force and in effect unless lifted by the President upon the recommendation of the Price Coordinating Council or the DA and DTI.

Marcos also directed the two agencies to ensure the strict implementation of the price ceilings, including monitoring and investigation of abnormal price movements.

The Department of the Interior and Local Government, including the Philippine National Police, is also mandated to assist the DA and the DTI in the enforcement of the price ceilings.

The DA 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 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.”

Order vs. cartels

Meanwhile, Marcos 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.

Marcos 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. —KBK, GMA Integrated News