Rice price ceiling may backfire on farmers, consumers —group

The Federation of Free Farmers Cooperatives (FFFC) said Sunday that the imposition of a price ceiling on rice may yield negative effects to both farmers and consumers.

Interviewed on Super Radyo dzBB, FFFC national manager Raul Montemayor argued that the mandated price ceiling of P41 per kilo for regular milled rice and P45 per kilo for well-milled rice is too low.

This may then either result in the rice’s lower farmgate prices which would affect the farmers, or lower quality which would affect consumers.

“Kapag sinabi mong P45 ang maximum price ng bigas, magko-compute ngayon ang mga trader kung magkano bibilhin ang palay para mailulusob ko diyan sa P45 price ceiling. Ang tendency, bibili ‘yan ng mas mura sa mga magsasaka. Hindi magpapalugi ang traders,” Montemayor said.

(When you say that P45 is the maximum price of rice, the traders will now calculate how much they would buy rice to reach the P45 price ceiling. The tendency is they would buy it cheaper from the farmers. Traders won’t let themselves lose money.)

“Actually, baka mag-backfire pa 'yan sa consumers. Kasi kung sa presyong P41 at P45 ay malulugi ang retailers, either hindi ‘yan magbebenta ng bigas dahil malulugi lang sila o kaya ang bigas nila ay gagawing nilang hindi well-milled rice at regular milled rice,” he added.

(Actually, that might even backfire on consumers. Because if at the price of P41 and P45 the retailers will lose money, either they will not sell rice or they will no longer turn their rice into well-milled and regular milled.)

President Ferdinand “Bongbong” Marcos Jr. earlier approved the joint recommendation of the Department of Agriculture (DA) and the Department of Trade of Industry (DTI) to set price ceilings on rice in the country, according to Executive Order No. 39, signed by Executive Secretary Lucas Bersamin.

Marcos, who sits as the concurrent Agriculture secretary, approved the price ceiling amid the surge in retail prices of rice in local markets.

Current prices of rice per kilo range from P45 to P70.

The price ceiling on rice will take effect on September 5, Tuesday, according to Malacañang.

Rice retailers were told by Department of Trade and Industry Assistant Secretary Agaton Uvero on Saturday to “sacrifice” profits for the meantime amid the skyrocketing prices of the commodity.

Uvero also said retailers who will violate the government-imposed retail price caps on rice might face fines of up to P1 million.

The Department of the Interior and Local Government (DILG) meanwhile said on Saturday that following Executive Order No. 39, the price ceiling on rice in both public and private markets would be implemented properly.

DILG Secretary Benhur Abalos and Metropolitan Manila Development Authority (MMDA) Acting Chairman Attorney Don Artes on Saturday instructed Metro Manila mayors to post copies of the EO in all supermarkets nationwide.

A group of rice traders meanwhile expressed readiness to cooperate with the government in implementing the EO imposing caps on retail prices of rice, the Presidential Communication Office (PCO) said Saturday.

In a news release issued by the Philippine Rice Industry Stakeholders Movement (PRISM) through the PCO, PRISM lead convenor Rowena Sadicon said the group will be working with the government to provide the consumers with affordable and quality rice. —KG, GMA Integrated News