Solons say price ceiling, warehouse raids helped stabilize rice prices

At least two members of the House of Representatives have lauded the administration's imposition of price ceiling in rice, saying it helped stabilize the price and ease the burden of the public.

Quezon Representative and House Committee on Agriculture and Food chairperson Mark Enverga said President Ferdinand "Bongbong" Marcos Jr.'s decision to impose price ceiling on rice, as well as the series of warehouse inspections on suspected rice hoarders, helped stabilize the rice market despite global market uncertainties.

"President Marcos and Speaker [Ferdinand Martin] Romualdez have showcased exemplary leadership and visionary strategies in tackling the intricate matter of rice pricing," Enverga said in a news release on Monday.

"Their decisive actions, notably the implementation of a price ceiling on rice, have been instrumental in upholding stability in this vital commodity, even amidst the turbulent tides of the global market," Enverga added.

Albay Representative Joey Salceda, who chairs the House Committee on Ways and Means, said the price ceiling and the subsequent raids against alleged rice smugglers and hoarders "have brought some sanity back to the trading of rice."

"The cap ended the rice price spike. It is now clear that soaring cost of the grain is artificial, driven by market speculation and rice traders driven by greed. Now, we have to manage our rice inventory better to avoid fueling the speculation here and in the global rice market," Salceda said.

"The global market shift following their intervention is a testament to their ability to navigate complex economic landscapes. It highlights the Philippines' capacity to influence and contribute positively to international food markets,” he added.

Marcos has issued Executive Order (EO) 39, which mandates a price cap of P41 per kilo for regular-milled rice and P45 per kilo for well-milled rice effective September 5, 2023.

Advocacy groups, however, have raised concern over the EO, saying this could result in lower farmgate prices to the detriment of farmers.

The government already started distributing cash aid worth P15,000 to micro rice retailers affected by the price ceiling on the food staple. —Anna Felicia Bajo/KBK, GMA Integrated News