Panganiban said the price cap has successfully stabilized prices, and the market should be allowed to function more freely
President Ferdinand Romualdez Marcos Jr. presides over a sectoral tackling the lifting for the rice price ceiling with the Department of Agriculture and other agencies concerned on Tuesday, October 03, 2023 at Malacañang Palace. Photos by Yummie Dingding/ PPA POOL
The Department of Agriculture on Tuesday recommended to President Ferdinand Marcos Jr. the lifting of Executive Order 39, which set the price of regular milled rice at P41 per kilo and well-milled rice at P45 per kilo.
In Malacañang, Bureau of Plant Industry Director Glenn Panganiban said the agency believes the market is ready to lift the price cap as there is an adequate rice supply and prices have begun to stabilize.
"Based on our assessment, it seems that we are ready. However, it's ultimately the decision of (President Marcos)," Panganiban added.
He cited three indicators to support the assessment: a stable rice supply, notable compliance with the price cap of 80 to 90 percent, and decreasing commodity prices since the cap was imposed.
The government imposed the cap in September in response to rising rice prices.
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Panganiban said the price cap has successfully stabilized prices, and the market should be allowed to function more freely, noting that the price ceiling was just a temporary intervention to stabilize supply and pricing.
"It was implemented to address the rising prices at the time, which seemed illogical given that we had an adequate supply. Our goal, in line with what the President wants, is to maintain a stable supply of rice, which will lead to stable prices in the market.From the perspective of the DA, we will continue to focus on production, and we believe that the market will adjust itself," Panganiban said.
Nonetheless, Panganiban assured the public that the DA will continue to monitor the markets to guard against price gouging once the price cap is lifted.
Likewise, the government will continue to assist rice retailers affected by the EO, giving P15,000 each to retailers and P5,000 each to sari-sari or small neighborhood stores.
Marcos had blamed smugglers and hoarders for the surge in rice prices that prompted him to issue EO 39.
Panganiban said he expects the country's rice supply to be good for 52 to 74 days.
"We are expecting almost 1.9 million metric tons of rice this month. So that will jump our days-to-last or our supply of rice to 74 days; it increased from 52 last September," Panganiban said.
"Because we are expecting a bigger bumper harvest for October and November, the public can expect that we will have a stable supply of our main staple," he added.
Panganiban explained that along with the rise in the harvest, rice prices have dropped in various regions. He did not, however, say specifically where the prices declined.
"The signs indicate that prices have been on the decline in the market since we initiated our efforts last month and are continuing today. Additionally, we anticipate a higher supply of locally harvested rice in the final quarter of the year, spanning October to November, and throughout the remainder of the year," Panganiban said.
President Marcos signed EO 39 last month, capping the price of regular and well-milled rice nationwide.
