The National Economic and Development Authority on Sunday backed the issuance of Executive Order 39 mandating price ceilings on rice.

"The imposition of a price ceiling on rice will address this issue in two ways: (1) It will immediately reduce the price of rice; and (2) it will penalize and consequently discourage hoarding, further decreasing the price of rice," NEDA said in a statement.

It said imposing EO 39 will help combat hoarding, profiteering, smuggling, and cartelization of rice in the country.

The order, which President Ferdinand Marcos Jr. signed on 31 August, sets the maximum price of regular-milled rice at P41 per kilogram and well-milled rice at P45 per kilogram.

It added that the price ceiling is a necessary measure to address the sharp increase in the price of rice in recent weeks. The agency noted that the current price of rice needs to be consistent with the country's ample supply of rice.

"It is not a standalone initiative. Law enforcement authorities continue their valiant efforts to crack down on individuals who hoard, excessively profit from, smuggle, or participate in rice cartels," it said.

NEDA claimed the EO is complemented by other initiatives to ensure the availability and affordability of rice, such as the Rice Competitiveness Enhancement Fund, which provides financial assistance to rice farmers, and the Inter-Agency Committee on Inflation and Market Outlook, which monitors the prices of goods and services.

It added that it is confident that the price ceiling will "effectively address" the high price of rice in the country.

The agency vowed to continue monitoring the rice market and take appropriate measures to ensure the availability and affordability of rice for all Filipinos.

The government's priority, NEDA said, is to ensure that the country has an ample supply of affordable rice.  On the other hand, the agency assured that the country has enough rice supply for the third quarter.

"With the upcoming harvest season starting in September and additional import orders already secured, there will also be enough rice for the rest of the year," it said.