Instead of price cap, give cash aid to hog raisers —Quimbo

Marikina City Representative Stella Quimbo on Wednesday underscored that implementing a price freeze is ineffective in addressing the increasing prices of meat products.

At a virtual press briefing, Quimbo, an economist, said enforcing a price cap would only undermine the supply of commodities.

"It is too simplistic and ineffective. A price cap on meat will work only if a price floor (minimum buying price) is implemented for farmgate prices, or else the burden ultimately falls on the hog raisers/farmers," Quimbo said.

"But price caps at different levels of the value chain would be too difficult and too costly to enforce. We’re better off giving the cash to the farmers," she added.

What the national government must do in addressing the rising prices of pork and chicken is a "mix of policy responses," according to Quimbo.

She said cash assistance should be provided to farmers who have been affected by the African swine flu and the previous calamities.

"'Yung pera na yan ang dagdag kapital para siguradong ipagpapatuloy nila ang kanilang pagsasaka, babuyan, o manukan. Ang mahalaga ay magpatuloy ang supply," Quimbo said.

Subsidies should also be provided to farmers and livestock producers so that they could develop local farming and livestock industry, she added.

Quimbo also said the tariff in importing meat should be lower: "Sa ngayon, masyadong mataas ang 30-40% na taripa. Ito ang isa sa mga dahilan kung bakit talamak ang smuggling. Sa mas mababang taripa, mas maliit ang insentiba na mag smuggle."

Quimbo said the Bureau of Customs should also strengthen its measures against smugglers.

President Rodrigo Duterte ordered the imposition of a price cap on pork and chicken for 60 days in Metro Manila, which became effective on February 8.

The price of kasim and pigue should not exceed P270 per kilo. The President also fixed the price ceiling for liempo and dressed chicken at P300 per kilo and P160 per kilo, respectively.

Some retailers and traders declared a pork holiday in protest of the price cap.—LDF, GMA News