Marcos lifts rice price cap

President Ferdinand "Bongbong" Marcos Jr. on Wednesday announced the lifting of the rice price cap. 

"Well, I think it's the appropriate time since namimigay tayo ng bigas. Yes, as of today we are lifting the price caps on the rice both for the regular-milled rice and for the well-milled rice," Marcos said in an interview in Taguig City.

(Well, I think it's the appropriate time since we have been distributing rice. Yes, as of today we are lifting the price caps on the rice both for the regular-milled rice and for the well-milled rice.)

"So tinatanggal na natin 'yung mga control. Pero hindi ibig sabihin basta't ganoon na lang dahil kailangan pa rin natin ayusin ang agricultural sector," he added.

(So we removed all the control. But it doesn't mean we will leave it at that because we still need to fix the agricultural sector.)

Marcos said that despite the lifting of the price cap, the government would continue to provide assistance to farmers.

Executive Order 39 mandated a price cap of P41 per kilogram for regular-milled rice, and P45 per kilogram for well-milled rice which became effective on September 5.

Last month, the President said the implementation of the rice price cap had been "going as well as we can expect."

"We just had a meeting about that this morning, so far the implementation and enforcement is going as well as we can expect. Siyempre nag-aalangan din 'yung ibang retailer at hindi natin puwedeng sisihin dahil nga hindi sila nakakatiyak nga doon sa ating ibibigay na kapalit," Marcos said at the time.

(Some retailers have apprehension and we cannot blame them because they are not certain with the aid that we are giving.)

The price ceiling stemmed from the surge in retail prices of rice in local markets. Marcos blamed this to smugglers and hoarders of agricultural products.

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

Indicators

Department of Trade and Industry-Fair Trade and Enforcement Bureau Director Fhillip Sawali, during a press briefing in Makati City, said Trade Secretary Alfredo Pascual and Agriculture Senior Undersecretary Domingo signed a joint memorandum circular, recommending the lifting of the mandated price ceiling.

The recommendation to lift the price cap was based on the specific indicators.

"The average selling prices are close to the mandated price ceilings which has an increasing compliance rate, while average farmgate price is maintained at P14 to P23 per kilo," Sawali said.

Sawali said the nationwide compliance with the price caps was at 81.46% as of September 28, 2023, while the average selling price for regular milled rice is at P41.05 per kilo and P45.31 per kilo for well-milled rice.

Moreover, the DTI official said there was stable supply of stocks as there was an observed increase in sellers of regular milled and well-milled rice, while volume of import is sufficient.

"Since the implementation of EO 39, the DA has delivered a total of 567,205 kilos of rice, sold to rice retailers and Kadiwa outlets," Sawali said.

"From September 26, there were 456 rice containers released from the ports, of which, 168 were released from the Manila North Harbor, and 288 were released from the Manila South Harbor, while 597 rice containers remain docked as of October 2, 2023," the DTI official added.

Sawali added the DTI and the DA also considered "favorable external factors" such as "the world price of rice is decreasing" in recommending for the lifting of the price cap mandate. — with Ted Cordero/RSJ/AOL, GMA Integrated News