Rice price cap ready to be lifted based on indicators —DA exec

An official from the Department of Agriculture (DA) on Tuesday expressed belief that the rice price cap could be lifted "soon" based on the present indicators.

"'Yun ang indication ano. From our parameter naman, mukhang ready na. But of course it’s all upon the president to decide on it," said Director Gerald Glenn Panganiban of the Bureau of Plant Industry at a Palace press briefing. 

(That's the indication. From our parameters, it looks like we are ready.)

Panganiban said that there have been decreasing prices of rice in the local markets and that the supply of rice is also expected to increase following the harvest season. 

Panganiban, however, emphasized that the lifting of the price cap is still up to the decision of the President Ferdinand "Bongbong" Marcos Jr. who sits as chief of the DA.

"The President will be the one deciding on it," Panganiban said.

He also said that 80% to 90% of the retailers have been compliant with the price cap implementation.  

Lifting of price ceiling?

In an interview at the Senate, Trade Secretary Alfredo Pascual said the matter is currently being deliberated as all indicators point to the possible lifting of the price ceiling.

“The elements that we need to see, ‘yung indicators, are there to point to the possible lifting of the ceiling,” Pascual told reporters.

Among the indicators that Pascual mentioned is the increase of rice stock of rice, which he said is currently sufficient to cover about 52 days.

“By the end of October, we expect to go to 76 days of rice supply,” he added.

Pascual also mentioned the prices of special and premium rice, which are not covered by the price ceiling order, are also going down.

Rice price cap

President Marcos approved the rice price cap and took effect on September 5, 2023 through Executive Order No. 39. It mandated price ceiling for regular milled rice is P41 per kilo while the mandated price cap for well-milled rice is P45 per kilo.

Marcos' approval of the price ceiling stemmed from the surge in retail prices of rice in local markets.

Affected retailers were given cash assistance worth P15,000 as they reel from the effects of the price ceiling.

Panganiban reiterated that the price cap would only be temporary.

"I think the market will take care of itself but at that point in time, temporary measure lang naman siya and we will see ano ang position ng Presidente," he said.

Finance Secretary Benjamin Diokno has admitted that the administration’s economic team was not consulted on the implementation of price ceilings on certain rice varieties commonly purchased by households.

Still, Diokno said they support Marcos' decision, saying that it was called for due to rampant hoarding and price manipulation of unscrupulous traders.

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. — with Hana Bordey/VAL/RSJ, GMA Integrated News