BBM: No more rice price cap

After almost a month of implementation, President Ferdinand R. Marcos Jr. on Wednesday lifted the rice price ceiling starting 4 October.

In a media interview following a rice distribution in Taguig City, Marcos said he decided to lift the price cap after the Department of Trade and Industry and the Department of Agriculture presented indicators in their recent sectoral meeting showing that the rice supply is sufficient and prices are stabilizing.

"As of today, we are lifting the price cap on rice, both for regular milled and well-milled rice," Marcos told reporters.

The government, he said, would continue to support the farmers and the poorest and most hungry Filipinos, even after the lifting of the price cap.

"So we are removing the controls, but it doesn't mean we're just leaving it at that because we still need to improve the agricultural sector, and we still need to help the poorest and the most hungry so that they can somehow recover," he said.

He said the government will continue assisting farmers, most underprivileged families, and those in the lowest economic demographic class because they suffer the most.

Executive Order 39 imposed a price cap order effective 5 September to curb rising rice prices and prevent hoarders and smugglers from increasing prices to P60 per kilo.

Some sectors, however, criticized that move, arguing that a price cap would harm farmers due to lower farmgate prices and consumers, as it may limit the supply of the food staple.

Rice retailers struggled to profit under the price cap due to high shipping costs. The government then gave qualified small rice sellers a P15,000 subsidy.

Traders may have used the policy to cut farmers' buying prices, even though they were already struggling.

The DA's Bureau of the Plant Industry reported that 80 to 90 percent of stores followed the price cap since its implementation.

Rice traders charged

Marcos also reiterated that the government would not tolerate smugglers plaguing the agriculture sector after the government apprehended four rice traders for alleged smuggling and hoarding of rice.

He cited Republic Act 10845, which imposes a sentence of life imprisonment and double fines for those convicted of smuggling agricultural products. He also highlighted Republic Act 7581, which imposes heavy penalties on individuals caught illegally stockpiling supplies.

The government, he said, has charged four violators of the Customs Modernization and Tariff Act, the Rice Tariffication Law, and the Anti-Agricultural Smuggling Act of 2016.

"We have now filed charges against San Pedro Warehouse, Blue Sakura Agri Grain Corporation, F.S. Ostia Rice Mill and Gold Rush Rice Mill for their actions," he said.

He blamed the fluctuating prices squarely on the smugglers, hoarders and price manipulators.

"You know, there shouldn't be any problem with rice. We have an abundant supply. Our buffer stock, as they say, our reserves are at 30 days, and it's steadily increasing," Marcos said, adding that the country would have more than 70 days of rice buffer stock after the harvest.

Meanwhile, he commended ordinary citizens engaged in urban farming at the BGC Community Farm, situated in the heart of Bonifacio Global City, and the City Farm, led by student Anna Beatriz Suavengco, which showcases the cultivation of vegetables in an urban farm in North Signal, Taguig.

Aid for rice retailers continues

On Wednesday, the Department of Trade and Industry said the cash aid distribution to affected micro rice retailers will continue.

"It is a one-time cash aid. But it will continue to be fair to those who haven't received it yet. We cannot stop that unless all registered micro rice retailers have received the cash aid," according to Trade Secretary Alfredo Pascual in a press conference in Makati City.

DTI-Fair Trade and Enforcement Bureau Director Fhillip Sawali said the government, through the DTI and the Department of Social Welfare and Development has already released P217.2 million worth of cash assistance as of 29 September 2023 to 14,480 out of the targeted 19,685 micro and small retailers nationwide.

"There was a stable supply of stocks as there was an observed increase in sellers of regular milled and well-milled rice, while the 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.

While in terms of monitoring rice imports, Sawali disclosed that as of 26 September, there were 456 rice containers released from the ports, of which 168 were released from the Manila North Harbor, 288 were released from the Manila South Harbor, and 597 rice containers remain docked as of 2 October.