Philippines : Imported rice price cap should be extended – DA
Philippines may extend its P50/kg price cap on imported rice for another 30 days as the Agriculture Department seeks to curb rising rice inflation and maintain affordability. Officials cited low global rice prices and over 80% compliance in Metro Manila.
The Department of Agriculture (DA) is recommending a 30-day extension to the P50-per-kilogram price cap for imported rice that is set to expire tomorrow.
“We do not want to preempt any decision that will be made by the president, but so far, the DA is recommending for the extension of the price cap,” Agriculture Assistant Secretary Willie Ann Angsiy told reporters on Wednesday.
President Ferdinand Marcos Jr. last month issued Executive Order 118 mandating the P50/kg price cap for 5 percent broken imported rice for 30 days, effective immediately. The measure aimed to address unjustified price hikes, prevent market abuse, guarantee the availability of affordable rice and preserve market stability.
Agriculture spokesperson Arnel de Mesa said the two major reasons for the recommendation to extend were rice price inflation and the low world market prices.
Rice prices saw double-digit inflation during the past two months after experiencing negative inflation a year earlier. Rice inflation reached 13.7 percent in April and 15.6 percent in May, the fastest in almost two years.
As for low world market prices, de Mesa said: “Premium rice, as we have seen based on the receipts, can be sold at P48 [per kilo]. For some retailers, the rice was delivered to them at P1,125 [per sack], which means they can really sell it at P45 [per kilo].”
He said that extending the price cap would allow the DA to secure gains in the effort to keep the staple affordable.
“Although we know that it (the price cap) is more effective if the implementation is short-term, I think another month will not hurt for us to ensure our gains,” de Mesa said.
The final decision of whether to recommend the extension of the price cap to Marcos will depend on the National Price Coordinating Council, Angsiy said.
“The DA is only recommendatory; it will still be up to the National Price Coordinating Council to recommend to the president,” she said.
As of Wednesday, compliance with the P50/kg price cap for imported rice was said to be over 80 percent across Metro Manila. Marketing Assistance Service director Junibert de Sagun, however, noted challenges in some regions.
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Source : The Manila Times
