Along with the Department of Agriculture, the Department of Trade and Industry will be the top agency that will make sure that Executive Order No. 39 released by President Ferdinand Marcos Jr. to impose mandated price ceilings on rice, will be heeded by rice players in wet markets and supermarkets.

Under EO 39, the mandated price ceiling for regular milled rice is P41.00 per kilogram and P45 per kilo for well-milled rice.

"The EO primarily mandates the DTI and the DA that the price ceilings are strictly implemented. We will visit major wet markets and retail stores in the coming days. This is not the sole responsibility of the DTI and DA because it's a whole of government approach to ensure that rice in the markets is reasonably priced and remains a conveniently accessible staple food to Filipinos. The EO is not mainly on the price of rice but also on the supply," Trade Secretary Alfredo Pascual said during the Laging Handa Public Briefing on Friday.

He said EO 39 was already in effect after it was published in the Government Gazette, as well as in various newspapers with nationwide circulation.

"There is no price freeze but a price cap, to be clear. Traders can still lower their prices. This EO is being implemented to prevent price manipulation in the market, and despite the ample supply, prices of rice surged in the past few days," Pascual added.

Pascual maintained that the price cap is not applicable to other varieties of rice and is only meant for regular-milled rice and well-milled rice.

"We have premium varieties that are not covered by the price cap. During our rounds, we will ensure that the subject of the EO 39 is not mislabeled as premium type," he added.

Under the Price Act, retailers violating the price ceiling have a penalty of imprisonment of not less than one year or more than 10 years, and/or a fine of not less than P5,000 but not more than P1 million.

On the other hand, price manipulators and hoarders are penalized with 5 years minimum up to 15 years imprisonment, and a fine of P5,000 not more than P2 million.

Hoarders, meanwhile, will be run after by law enforcement units, namely the Philippine National Police, National Bureau of Investigation, the Bureau of Customs, and the Philippine Coast Guard, among others, Pascual said.

The recommendation of the DA and the DTI to impose price ceilings on rice stemmed from the current surge in retail prices of rice in the country, which resulted in a considerable economic strain on Filipinos, particularly the underprivileged and marginalized.

During the sectoral meeting, the DA reported its projection that rice supply for the second semester would reach 10.15 million metric tons, 2.53 MMT of which is ending stock from the first semester while 7.20 MMT is the expected yield from local production and only 0.41 MMT is imported rice.

The total supply would be more than enough to cover the current demand of 7.76 MMT and will yield an ending stock of 2.39 MM that will last up to 64 days.

Based on the projection, EO 39 stated the DA and the DTI "have reported that the country's rice supplies have reached a stable level and are sufficient owing to the arrival of rice imports and expected surplus on local production."

The EO, however, noted that "despite steady supply of rice, the DA and DTI have also reported widespread practice of alleged illegal price manipulation, such as hoarding by opportunistic traders and collusion among industry cartels in light of the lean season, as well as global events taking place beyond the Philippines' control, such as the Russia-Ukraine conflict, India's ban on rice exportation, and the unpredictability of oil prices in the world market, among other factors, have caused an alarming increase in the retail prices of this basic commodity."