Consumers reeling from skyrocketing rice prices felt relieved after President Ferdinand "Bongbong" Marcos Jr. imposed a cap on prices, but traders said the EO would have a painful effect on them.
The Department of Trade and Industry, or DTI, thus asked retailers to sacrifice a little and prioritize the welfare of most Filipinos.
Executive Order 39 placed a cap on the price of regular milled rice at P41 per kilo and for well-milled rice at P45 per kilo.
"The government is asking retailers to help uplift the welfare of the majority of Filipinos. Based on the DTI's computation, they can sell within the cap at which they are not expected to lose but profits will not be big," said DTI Assistant Secretary Agaton Uvero in a news forum in Quezon City on Saturday.
The price cap is a temporary solution to the ballooning rice prices which, he said, was caused by hoarders.
"The price is excessive and extraordinary. There is apparent hoarding, profiteering, and price manipulation happening right now. This should be investigated, and warehouses should be checked," he added.
Local farmers to get hit
Meanwhile, Raul Montemayor, president of the Federation of Free Farmers, aired concerns that Marcos's EO would cause palay prices to go down.
He said farmers from Pampanga and Sultan Kudarat had already reported a P3 per kilo decrease in palay prices.
"Prices of palay will fall. So, when we need farmers to increase their output, the EO will be sending them a message to the contrary," he said, adding that the reduction could be as high as 20 percent in one day.
"The government should contemplate the effects of the EO on farmers," he said.
On the other hand, the traders group Philippine Rice Industry Stakeholders Movement, or PRISM, has expressed its readiness to continue working with the government to provide consumers with affordable and quality rice after the issuance of the EO.
While some industry stakeholders were not receptive to the EO, PRISM lead convenor Rowena Sadicon said her group knows that it is the President's prerogative to issue such a directive, as she expressed hope PRISM members would understand the position of the Chief Executive.
She expressed hope for normalcy in the coming days, particularly with the start of the palay harvest season, which should stabilize rice prices in the country.
Price monitors fan out
The DTI said it would mobilize its price monitors and work closely with the Department of Agriculture, other national agencies, and the local chief executives.
Local Price Coordinating Councils will be activated to effectively implement the mandated price caps.
"We recognize the urgency of addressing the escalating rice prices in the market. In parallel, it is imperative to maintain stringent oversight over rice pricing and supply to preclude any potential hoarding and price manipulation by traders and retailers," Trade Secretary Fred Pascual said.
"To fortify our monitoring and enforcement mechanisms, the DTI will mobilize its price monitors and engage with local government units to activate their Local Price Coordinating Councils," he said, even as he emphasized that the price caps will not apply to special and premium rice.
The Samahang Industriya ng Agrikultura or Sinag lauded the government's move.
"There is no reason for any price increase these past weeks as there is no rice shortage in the country," Sinag executive director Jayson Cainglet said.
Cainglet said traders capitalized on the initial public panic after the National Food Authority on 31 July, disclosed that its buffer stock was only good until the first quarter of 2024.
"And we have yet to include the expected 7 million metric tons of rice this harvest season," he said. "At any given time, our buffer stock is good for 50-60 days, prior to the onset of the harvest season later this month."
No to 'mislabeling'
Pascual on Friday said government inspectors will make the rounds to guard against the mislabeling of rice varieties in local markets.
Penalties await merchants who will try to circumvent the price ceiling using this scheme, he said.
Pascual explained that only regular and well-milled rice are covered by the price ceiling, and premium rice is not.
"We will make sure that the rice varieties subject to the price ceiling, regular and well-milled rice, are not mislabeled as premium rice," the trade chief said. "We have monitoring teams who will go around."
"Also, the Department of Agriculture will issue guidelines so that we can distinguish premium varieties from the varieties covered in the price act," Pascual said.
Retailers found violating the price ceiling face imprisonment from under a year to 10 years, or fines ranging from P5,000 to P1 million, or both.
As of Friday, locally produced regular milled rice in Metro Manila retailed at from P42 to P55 per kilo, up from P38 last year, according to the DA price monitor.
Local well-milled rice was being sold from P47 to P57 per kilo, compared to P40 last year.