Violators of rice retail price cap may face fines of up to P1M —DTI exec

Retailers who will violate the government-imposed retail price caps on rice might face fines of up to P1 million, an official of the Department of Trade and Industry (DTI) said.

At the Saturday News Forum in Quezon City, Trade Assistant Secretary Agaton Uvero said that beginning Tuesday, September 5, the DTI, Department of Agriculture (DA), and local government units (LGUs) will start monitoring the retail prices of regular and well-milled rice in “major markets in major cities.”

Executive Order No. 39, which mandates a price ceiling for regular milled rice of P41 per kilo and P45 per kilo for well-milled rice, takes effect on September 5.

The EO was approved by President Ferdinand Marcos Jr., who concurrently sits as secretary of the DA, as the retail prices of rice in local markets surge to P45 to as high as P70 per kilo.

Uvero warned that violators of the price caps might face administrative cases with fines that can go as high as P1 million.

“The fine, minimum of P5,000… maximum penalty is P1 million,” the DTI official said.

Under the Republic Act No. 7581 or the Price Act, violators of the price ceiling set by the government “shall suffer the penalty of imprisonment for a period of not less than one year nor more than 10 years of a fine of not less than P5,000 nor more than P1 million, or both, at the discretion of the court.”

While penalties are heavy, Uvero said there is still a due process before a violator can be penalized.

He said that a retailer will first be sent a letter or notice to explain.

“Una paliwanag mo bakit, meron naman kasing leeway to.. bakit ganon? Kung konti lang ang diperensya… P45 bininta mo ng P46 [per kilo], kailangan ba makulong ka na,” Uvero said.

“Kung mahulihan ka ng isang sakong overpriced, maximum penalty is P1 million ‘di naman makatarungan ‘yun…,” he said.

In a separate news release, the DTI said it will mobilize its price monitors and will work closely with the DA, other national agencies and the local chief executives to activate their Local Price Coordinating Councils to effectively implement the mandated price caps on rice.

“We recognize the urgency of addressing the escalating rice prices in the market. In parallel, it is imperative to maintain stringent oversight over rice pricing and supply to preclude any potential hoarding and price manipulation by traders and retailers,” said Trade Secretary Fred Pascual.

“To fortify our monitoring and enforcement mechanisms, the DTI will mobilize its price monitors and engage with LGUs to activate their Local Price Coordinating Councils,” added Pascual.

Pascual urged the public to report immediately to them any instances of overpricing or hoarding through their “One-DTI hotline” at 1-384, or send an email to ConsumerCare@dti.gov.ph, as he emphasized that everyone’s participation is needed to “build a more equitable and prosperous nation.”

The public can also send their complaints about the executive order through the government’s 8888 Citizens’ Complaint Center.

Order vs. cartels, manipulators

Uvero, during the forum said that while the price caps are being implemented the government will be relentless in going after hoarders and profiteers, noting that the price surge was due to an “artificial shortage” created by unscrupulous profiteers.

Under the EO, the President also directed the Philippine Competition Commission (PCC), 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.

Pascual, in a news release, said that the DTI will collaborate with the PCC to undertake measures against cartels and other entities that manipulate prices to ensure the welfare and protection of rice consumers.

Subsidy for retailers

Uvero has earlier told retailers, who will be forced to sell their stocks at lower prices due to the price caps on the food staple, to sacrifice profits for the meantime amid the skyrocketing prices of the commodity. 

Nevertheless, he said that concerned government agencies are discussing extending subsidies to affected retailers.

“May pinag uusapan na subsidies, but these are still in the works,” the DTI official said. —VAL, GMA Integrated News