Retailers’ EO 39 payouts threshed out

Small rice retailers who said they'd rather close shop than incur losses selling below acquisition costs can now stop stonewalling.

This as Social Welfare and Trade department officials met yesterday to discuss payouts to the retailers who would follow the rice price cap set by the government under Executive Order 39.

EO 39 set a price ceiling of P41 per kilo for regular and P45/kilo for well-milled rice. Rice retailers said they could not sell at those prices when they buy their stocks upwards of P50 per kilo.

Social Welfare Secretary Rex Gatchalian said that payouts will be implemented through the Sustainable Livelihood Program or SLP.

Assistant Secretary for Strategic Communications Romel Lopez said the beneficiaries will receive a maximum of P15,000 each.

Gatchalian met with DTI Undersecretary Carol Sanchez to discuss the implementation of the SLP.

"We are going to use the program to make sure that our retailers are taken care of during this unforeseen time," Gatchalian said during the meeting.
Gatchalian asked DTI to coordinate with rice retailers' groups to ensure all stakeholders are on board during his department's implementation of the cash aid program.

"In this case, the DTI was tasked with working with the rice retailers association to identify who the small retailers are. They'll pass on the list to us, and on the ground, we'll do payouts," he said.

Assistant Secretary for Strategic Communications Romel Lopez said the beneficiaries will receive a maximum of P15,000 each.

"The completion of the master list of the intended beneficiaries is the meeting's top agenda in order to carry out the actual payouts as soon as possible," Lopez said.

He explained that while the DSWD is mandated to facilitate the distribution of cash aid, the DTI will be in charge of the grievances and complaints component of the program.

Quezon 1st District Rep. Mark Enverga, chairperson of the House Committee on Agriculture, also attended the meeting to discuss the House initiative to raise P2 billion from unprogrammed funds to augment the SLP.

"The collaborative effort between DSWD and DTI underscores the government's commitment to provide immediate support to rice retailers affected by the price ceiling policy," Lopez said.

Vendors' fears

Meanwhile, members of Cebu's largest vendors cooperative expressed fears they would have to close their rice retailing businesses following the imposition of the rice price cap.

Cebu Market Vendors Development Cooperative chairman Erwin Gok-ong told Daily Tribune their capital per kilo of rice was P48 to P54; thus, the price ceiling poses a big problem.

"The government wants us to sell at P45 per kilo. We are losing money, and we cannot pay our loans. Many of us may close shop," Gok-ong said.

"Where can we buy P42 per kilo of rice for us to sell at P45?" he asked. He questioned why they should be arrested and penalized for retailing rice in the markets.

The Carbon Public Market in Cebu City is the largest public market in the Visayas and Mindanao.

Regular milled rice costs P2,450 per sack (50 kilos), and well-milled rice costs P2,650. Retailers said they make between P100 and P150 per sack.

The DTI and DA recommended the price ceiling after retail prices of locally produced and imported rice increased by 14 percent.

On Thursday, the Department of Agriculture vowed to link rice farmers to vendors at public markets to ensure decent incomes for them.

At the same time, the DA assured the public that there would be enough rice for the year as long as traders do not hoard the commodity.

DA Director for Legal Services Atty. Wiann Angsiy said agriculture officials are now talking with farmers and preparing trucks to transport their produce directly to vendors at public markets.

Angsiy said 95 percent of rice retailers have complied with the order, while stressing that the price control was designed to be applied temporarily.