DA: Stiff fines, jail await those violating price cap on imported rice

The Department of Agriculture (DA) on Sunday issued a warning to rice retailers, traders, and importers who violate the price ceiling on imported rice set by the government that they would face million-peso fines, jail time, and even business closures.

“Unlike the previous maximum suggested retail price that depended largely on moral suasion and voluntary compliance, the mandated price ceiling now allows the Department of Agriculture to impose punitive sanctions and fines on violators,” DA Secretary Francisco Tiu Laurel said.

President Ferdinand “Bongbong” Marcos Jr. last week mandated a price ceiling of P50 per kilogram on imported rice nationwide in a bid to address the unjustified increase in the commodity's price.

Under Executive Order No. 118, Marcos imposed the price cap for 30 days, unless lifted earlier upon the recommendation of the National Price Coordinating Council (NPCC).

The Price Act (Republic Act No. 7581) mandates that those found violating government-set price ceilings on basic necessities may face a prison term of one to 10 years, fines ranging from P5,000 to P1 million, or both.

They may also be meted administrative sanctions under the Price Act, such as temporary or permanent closure of establishments, confiscation or seizure of products involved in the violation, suspension or revocation of permits and licenses, and issuance of cease-and-desist orders.

"Administrative fines ranging from P1,000 to P1 million may also be imposed on erring establishments," the DA said.

Since rice is classified as a basic necessity under the law, the DA can use its regulatory powers during periods of excessive or unreasonable price increases.

"The law further states that officers or employees of corporations found violating the price ceiling may be held personally liable," the DA said.

The Agriculture Department said its monitoring teams and inspectors will intensify checks in public markets, supermarkets, and rice retail outlets nationwide during the 30-day implementation period.

"The price ceiling may be modified, extended, or removed after a review," the DA said.

The temporary price ceiling aims to protect consumers from profiteering and unreasonable price increases, and help stabilize rice prices, it added. —KG, GMA News