Romualdez: P2-B in 2023 budget to be allocated for rice retailers affected by price ceiling

(FILE PHOTO MARCH 16, 2023) House Speaker Martin Romualdez photo from Martin Romualdez FB page

MANILA, Philippines — At least P2 billion would be allocated by the government to rice retailers who would be affected by the rice price cap imposed by President Ferdinand Marcos Jr., House Speaker Ferdinand Martin Romualdez said on Monday.

In a statement, Romualdez instructed the House Committee on Appropriations chairperson and Ako Bicol Rep. Elizaldy Co to coordinate with the Department of Budget and Management (DBM) for the said allocation.

Further information from Romualdez’ office showed that the allocation would come from the 2023 national budget or the General Appropriations Act (GAA).

“Our goal is to ensure that we can extend assistance to rice retailers who may be affected by this rice price ceiling, as it is a directive from our President aimed at protecting consumers,” Romualdez said.

The Speaker maintained that the government is not insensitive to the people’s concerns — referring to concerns from sectoral leaders and even fellow lawmakers that Executive Order No. 39, which mandates the selling of rice only between P41 to P45 per kilogram, might affect small retailers.

According to lawmakers from the Makabayan bloc, small retailers who have no control over the production costs of rice might be forced to sell grains at a very low income.

Agri Rep. Wilbert Lee, meanwhile, said that this can also lead to fewer retailers selling rice even if it is cheap.

READ: Amid Marcos’ rice price ceiling order, solon says PH must be self-sufficient

“The government is not insensitive, so we want to listen to their concerns, and we will try to find a solution to address their fears of incurring losses,” Romualdez said.

“We are aware that they have high costs from traders, but our priority is the public’s difficulty in buying rice,” he added.

READ: Speaker vows to address concerns of rice retailers affected by price ceiling 

Co meanwhile assured Romualdez that he has already coordinated with DBM for the release of the P2 billion fund.

“We will promptly engage with the DBM to expedite the release of the P2 billion funds for our rice retailers,” the appropriations panel chief noted.

According to the Presidential Communications Office, Marcos ordered the price cap even though the country has a sufficient supply because of 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 

However, the imposition drew mixed reactions — as while Senator Francis Tolentino praised the swift order, other lawmakers like Senator Risa Hontiveros and Senator JV Ejercito believe that stricter enforcement of laws, and not a mere price cap, would address hoarding.

READ: Marcos’ order to set price cap on rice draws mixed reactions from senators 

Romualdez defended Marcos, saying that the President was forced to act quickly to prevent another price surge — like what happened to onions during the second half of 2022.

“Naturally, the President had to act swiftly to counter this ill-intentioned plan by a select few,” he said.  “But rest assured, the government is committed to supporting our retailers affected by this Executive Order.”

JPV