‘Alarming increase’: Marcos sets price ceilings on rice

President Ferdinand “Bongbong” Marcos Jr. has mandated price ceilings on rice nationwide amid the continued increase in its retail prices, Malacañang said Friday.

Signed on Thursday, Marcos’ Executive Order 39 states that the price ceiling for regular milled rice is P41 per kilogram and P45 per kilogram for well-milled rice.

“The mandated price ceilings shall remain in full force and effect unless lifted by the President upon the recommendation of the Price Coordinating Council or the Department of Agriculture and the Department of Trade and Industry,” the EO stated.

The Palace said the EO was issued after Marcos was briefed on Monday about the status of government initiatives to ensure sufficient rice supply in the country and following the recommendation of the DTI and DA.

During the sectoral meeting, the DA reported its projection that rice supply for the second semester would reach 10.15 million metric tons (MMT), which would be more than enough to cover the current demand of 7.76 MMT and yield an ending stock of 2.39 MMT that will last up to 64 days.

“Despite the steady supply of rice, the DA and DTI have also reported that the widespread practice of alleged illegal price manipulation, such as hoarding by opportunistic traders and collusion among industry cartels in light of the lean season, as well as 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, have caused an alarming increase in the retail prices of the basic commodity,” the EO read.

As of August 28, the price of local regular milled rice in markets in the National Capital Region ranged from P42 per kilogram to P55 per kilogram, while local well-milled rice cost between P48 per kilogram and P56 per kilogram, the DA said. 

The National Economic and Development Authority also reported that rice inflation rose from 1.0% in January 2022 to 4.2% in July 2023.

Marcos ordered the DTI and the 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 Interior and Local Government.

The Bureau of Customs (BOC) was directed to intensify its inspections and raids of rice warehouses to combat hoarding and illegal importation of rice in the country and facilitate the confiscation, seizure, or forfeiture of smuggled rice.

The EO said the DA must share with the BOC relevant information such as the inventory of rice stocks, the list of accredited rice importers, and the location of rice warehouses.