Price cap on rice might hurt small retailers, Makabayan bloc says
MANILA, Philippines — Lawmakers from the Makabayan bloc are worried that President Ferdinand Marcos Jr.’s price cap on the per kilogram price of rice might hurt small retailers who have no control over the price of rice they purchase.
During a briefing by the Makabayan bloc on Friday, Gabriela party-list Rep. Arlene Brosas said that Executive Order No. 39 signed by Marcos may be a move to stop the people’s frustrations regarding Marcos’ campaign promise of bringing rice prices down to P20 per kilogram.
“Ito po ay (This is a) desperate move to quell the people’s mounting frustration over his failure to deliver his campaign promise. Kasi ang sinabi nya, P20 per kilo ng bigas (He had promised to lower the price of rice to P20 per kilo),” Brosas said.
“It will primarily hurt small retailers who are merely at the receiving end of rice and farm gate prices due to costlier production inputs, but may do very little to curb hoarding and price manipulation by rice importers and syndicates,” she added.
The Gabriela lawmaker suggested that instead of imposing a price ceiling, Marcos could call for the suspension of the Rice Liberalization Law while providing local farmers significant subsidies to boost production and eventually increase the supply.
Brosas said that while the government should bust cartels, lessening the importation of rice can be a deterrent to hoarding since imported grains are usually the ones being stored in warehouses.
“Instead of imposing artificial price controls, President Marcos Jr. instead should order the immediate suspension of the RLL or Rice Liberalization Law and roll out significant subsidies sa rice farmers na alam naman natin na matindi ang nangyari (to rice farmers whose livelihood were affected) after the typhoon devastation,” she said.
“Higit na kailangan ng intervention sa cartel ng bigas sa bansa na pangunahing nakikinabang sa importasyon at mataas na presyo ng bigas. Dapat na matigil ang pagsandig ng bansa sa imported na bigas lalo pa at papataas ang presyo ng bigas sa pandaigdigang antas at nanalasa ang isang global food crisis,” she added.
(We really need intervention regarding the rice cartels, which benefit the most from importation and high rice prices. The country’s reliance on imported rice, especially if worldwide prices increase and a global food crisis is looming, should stop.)
ACT Teachers party-list Rep. France Castro meanwhile agreed that it seems the administration just wants to ease the people’s anger about the rising prices of rice.
“Parang nagpapabango lang ang Pangulong Marcos dito sa EO 39 dahil wala, matagal na talagang kailangan na kinilusan talaga ng administrasyong Marcos itong patuloy na pagtaas ng presyo ng bigas. So siguro gusto nya lang ma-ampat yung pag-aalburuto na ng taong bayan sa patuloy na pagtaas ng presyo ng bigas at iba pang mga bilihin,” she said.
(It seems Marcos just wants his administration to look good with the EO 39 because the problem of the increasing price of rice has not been addressed by the administration. So maybe he just wants the people’s anger to die down with the continuous rise in prices of rice and other commodities.)
Marcos’ EO No. 39 was signed on Thursday, placing a price ceiling on rice at P41 to P45 per kilogram. According to Malacañang, the price cap was placed due to the following factors:
- illegal price manipulations like hoarding and industry collusion
- global events outside the country’s control, such as the Russia-Ukraine conflict
- India’s rice export ban
- Capricious oil prices in the international market
READ: Bongbong Marcos orders price caps for rice at P41 to P45 per kilo
But earlier, several of the Makabayan’s colleagues in the House of Representatives supported Marcos’ move, saying that it was timely and necessary. Over the past week, a series of raids at Bulacan warehouses were conducted by the Bureau of Customs (BOC), showing that rice supply is sufficient.
Speaker Martin Romualdez, who accompanied BOC, revealed that some traders are waiting for rice prices in the world market to increase before releasing supplies which have been sitting for around three months.
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