Wednesday, June 04, 2008 Price control will lead to chaos: DTI
EVEN as the prices of rice have reached P50 per kilo in a matter of two weeks from its previous price of P34 per kilo, it is still not a reason for the Local Price Coordinating Council (LPCC) to recommend a price control mechanism on the food staple.
According to Marizon Loreto, assistant regional director of the Department of Trade and Industry (DTI), the imposition of a price control scheme will only result in chaos and a rice shortage in the region.
DTI, Department of Agriculture (DA), Department of Health (DOH), together with other agencies, comprise the members of the LPCC.
"If we will impose price control, the traders will move their goods to other areas where there is no price control, it will result in a shortage of the food staple," Loreto said.
Based on the implementing rules and regulations of Republic Act (RA) 7581 otherwise known as the Price Act, a price control or ceiling may be implemented by the government on the prices of the basic commodities if there is an impending existence or effects of a calamity; a threat, existence, or effect of an emergency; a prevalence of widespread acts of illegal manipulation; or the impendency, existence, or effect of any event that cause artificial and unreasonable increases in prices of said commodities.
Loreto added that the market forces have to play its natural course in dictating the price of the basic commodity or food staple.
The prices of rice in Davao City and in some areas of Mindanao have skyrocketed to P50 per kilo from its previous price of only P34 per kilo two weeks ago.
Some rice traders and millers are speculating that the price of commercial rice could reach as much as P60 per kilo in the next few weeks. (CPM)
