By: Atty. Gregorio B. Austral, CPA
Mandated price ceilings on rice
The government acting as the “father of the nation” has now responded to the
looming rice crisis using the strong arm of the law to stifle the escalating prices, with
the issuance of Executive Order No. 39 imposing mandated price ceilings on rice.
Despite the claims of the Department of Agriculture (DA) and the Department of
Trade and Industry (DTI) that there is a steady supply of rice, these agencies reported
that there is widespread practice of alleged illegal price manipulation, such as hoarding
by opportunistic traders and collusion among industry cartels in light of the lean season.
This practice has aggravated the effects of the global events taking place beyond the
Philippines’ control, such as the Russia-Ukraine conflict, India’s ban on rice exportation,
and the unpredictability of oil prices in the world market, among other factors.
EO No. 39 acknowledged that the current surge in retail prices of rice in the
country has resulted in a considerable economic strain on Filipinos, particularly those
who are underprivileged and marginalized. Thus, it is crucial and urgent for the State to
guarantee that basic necessities are not only sufficient but also reasonably priced and
conveniently accessible to every Filipino.
Pursuant to Section 1 of the EO, regular milled rice cannot be sold in the market
beyond P41 per kilogram while well-milled rice has a mandated price ceiling of P45 per
kilogram. The mandated price ceilings shall remain in full force and effect unless earlier
lifted by the President upon the recommendation of the Price Coordinating Council or
the DA and DTI.
Violators of the law may be punished under Republic Act No. 7581 or the Price
Act, RA No. 10863 or the Customs Modernization and Tariff Act, and/or RA No. 10667 or
the “Philippine Competition Act.”
The use of the mandated price ceilings is one of the tools available to the
government to avert the looming crisis. However, strengthening the agriculture sector
is still the best way forward to cushion the country from food crisis.