Sinag: Consumers to benefit from rice price caps

INQUIRER FILE PHOTO

MANILA, Philippines—Farmers group Samahang Industriya ng Agrikultura (Sinag) Executive Director Jayson Cainglet on Saturday said that consumers would immediately benefit from Executive Order (EO) 39 issued by President Marcos, mandating a price cap of P41 per kilo for regular rice and P45 per kilo for well-milled rice.

“From the current retail of P60 (per kilo) it will now become P45 (per kilo), definitely the consumers will benefit here,” Cainglet said.

Cainglet added that at present, the prevailing retail price for regular milled rice is at P52 per kilo.

“The mere fact that you will bring down the regular and well-milled rice to P41 and P45, the benefit will be immediate,” he added.

According to Cainglet, the P41 and P45 per kilo price caps will also serve as a compromise amid the position of other farmers’ groups that the price cap is still high and the opposition from the decision of the President to implement a ceiling on the staple food.

“Those who oppose (the price cap) are extreme; either they want to bring down the retail price further or want a higher retail price to increase the farmgate price of palay. So the P41 to P45 ceiling price is a compromise,” he explained.

At the same time, he also refuted claims of a shortage in the supply of rice.

“Based on assurance of the millers and all in the industry, nobody is saying there is a shortage (of rice). There is probably hoarding and profiteering but not shortage,” he said, adding that the expected harvest is at seven million metric tons.

He said that with the P41 to P45 per kilo of rice, the farmers will still earn as the buying price of palay will still range between P23 and P25 per kilo.

Cainglet added that the millers prefer to sell local rice amid the high price of imported rice.

“Millers will compete to buy palay as local rice are cheaper compared to imported rice,” Cainglet explained.

Cainglet said that the National Food Authority (NFA) should also take advantage of the harvest season and buy palay from the farmers.

“The real solution here is by harvest time, the NFA should buy palay as they will also earn. It is not true they suffer losses when procuring palay as they will also sell rice. The NFA can compete and buy at P22, P23 per kilo, that should be their buying price during the harvest time,” Cainglet said.

Marcos has directed the Department of Trade and Industry (DTI) and the Department of Agriculture (DA) to ensure the strict implementation of the mandated price ceilings, monitor and investigate abnormal price movements of rice in the market, and provide assistance to affected retailers with the help of the Department of the Interior and Local Government (DILG).

The Philippine Rice Industry Stakeholders Movement (Prism) through the Presidential Communications Operation (PCO), said the group will be working with the government to provide the consumers with affordable and quality rice.
The Alliance of Concerned Consumers in the Philippines (Accop) also backed the price caps.

The rice price ceiling of P41 and P45 per kilo will take effect on Tuesday, September 5, 2023.