The price cap on rice took effect on Tuesday.

Following a directive from President Ferdinand “Bongbong” Marcos Jr., retailers adjusted the price ceiling for regular milled rice to P41 per kilogram and P45 per kilogram for well-milled rice.

Marcos issued Executive Order 39 last Thursday after he was briefed about the status of government initiatives to ensure sufficient rice supply in the country and following the recommendation of the Department of Trade and Industry and the Department of Agriculture.

“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. 

According to the National Economic and Development Authority, the imposition of a price ceiling ”will immediately reduce the price of rice and penalize and consequently discourage hoarding, further decreasing the price of rice.”

To mitigate its impact, the Palace said the Department of Social Welfare and Development would give financial aid to retailers.

The DTI will extend financial assistance, loan programs, logistics support, and market linkages to retailers in wet markets and sari-sari stores.

Other programs include linking local farmers with supermarket chains and other retailers, finding alternative markets, and promoting bulk buying or advance purchases, as well as providing transport for rice stock purchased at the level of the price ceiling or above to Diskwento Caravan sites and selling directly to consumers.

“Huwag po kayong mag-alala mga rice retailer. Nauunawaan po namin kaagad na maaabala kayo dahil iisipin nga ninyo na may malulugi. Nandiyan ang gobyerno ninyo upang magbigay ng tulong para sa inyong lahat para naman bawi ang lugi ninyo na nangyari dahil sa price cap,” Marcos said in his speech on Monday before leaving for Indonesia to attend the 43rd ASEAN Summit.