DTI eyes flooding markets with P38/kilo rice to temper inflation

In its bid to temper inflation, the Department of Trade and Industry is eyeing to flood the market with P38-per-kilo, well-milled rice, and P50-per-kilo refined sugar.

DTI Secretary Ramon Lopez said the department is finalizing paper works with the Department of Agriculture (DA) to issue import permit only to importers and retailers who can commit to sell rice and sugar at the agreed price.

“May undertaking na magbenta at P38 upang sa ganun masigurado na natin direcho na sa market wala nang pasa-pasa sa trader direcho na ibebenta ito sa mga tao P38," Lopez said.

Likewise, he said that the same could be done with sugar, which is also a prime commodity.

"Kasama ang sugar kasi isa rin itong commodity na hanggang nasa P65 per kilo, e ang pre-inflation [price] niya singkwenta naman [P50].”

Lopez hopes that flooding the market with affordable rice would eventually ease inflation.

“So may choice na si consumer. Yes may P44 pataas na local rice, merong imported na mga P38 at nandiyan pa rin yun NFA rice."

But he pointed out that the measure doesn't mean the government is imposing price ceiling on rice.

“Price setting ang tawag na parang price ceiling din siya but by making that item available sa ganun presyo so in way nag-price ceiling ka dito sa sinusupply mo. Hindi mo puwedeng sabihing price ceiling sa bigas kasi ang local palay mataas, e.”

Once imported rice is sold at P38/kilo, "prices of locally-produced commercial rice will eventually catch up and go back to pre-inflation level “may pressure din kasi.”

Moreover, he expressed hopes that "prices of local palay will also go down para yun milled version niya, hopefully will go back to 41 level.”

Price ceiling, Lopez warned, could only worsen the situation and lead to supply issues.

“Usually pag nagpa-price control din, sa totoo lang nagkakaroon pa ng corruption lalo yan. magkalimitahan ng supply and only those who have access and palakasan will get that supply lalo nawalan ng supply yung mahihirap.”

On the other hand, chicken and pork might be place under a “moving price ceiling” as a means to control the price in the retail market.

“Kapag pag-uusapan namin with DA price control on the margin from farm-gate to the retail, with our network sa mga producers sabihin nila this week ganito ang presyuhan kasi tumaas ang cost or bumaba ang cost so naging up-and-down yan will be able to control the retail margin,” Lopez added. —LBG, GMA News