Lifting of rice price cap welcomed by farmers’ groups

Farm industry stakeholders on Wednesday lauded President Ferdinand Marcos Jr.’s decision to lift the mandated price ceilings on two varieties of rice commonly purchased by households.

In a statement, Samahang Industriya ng Agrikultura (SINAG) executive director Jayson Cainglet said, “We thank the President for the lifting of the price ceiling.”

“The imposition and lifting [today] of the price cap has been supported by the agriculture sector,” he added.

Marcos, on Wednesday morning, announced the lifting of Executive Order 39, which mandated a price cap of P41 per kilogram for regular-milled rice and P45 per kilogram for well-milled rice.

The order had been in effect since September 5.

“Farmgate price is now steady between P23 and P25 per kilo while retail prices of well-milled rice can be sold bet P43 to P44 per kilo, way below the price cap,” Cainglet said.

For his part, Federation of Free Farmers national manager Raul Montemayor said Marcos’ decision to lift the price ceilings on rice will provide another boost to farmers. 

“It will stabilize palay prices during the ongoing harvest season and provide incentives for farmers to expand their production and reduce our reliance on imports,” Montemayor said.

In an interview on Super Radyo dzBB, Grains Retailers' Confederation of the Philippines (GRECON) spokesperson Orly Manuntag also thanked the President for lifting the price control measure on rice, adding that market forces should continue to dictate prices.

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

The recommendation to lift the price cap was based on 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.

Moreover, the DTI official added that there was a 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. —VAL, GMA Integrated News