THE Philippine government economic managers were not consulted about the implementation of a mandatory price ceiling on rice, said Finance Secretary Benjamin Diokno admitted on Sunday, September 10, 2023.
In a press briefing, Diokno said the economic managers, which include him, Budget Secretary Amenah Pangandaman and National Economic and Development Authority (Neda) Secretary Arsenio Balisacan, were in Japan when the Malacañang released Executive Order 39, which orders the mandatory price cap on regular- and well-milled rice at P41 and P45 per kilo, respectively.
“Magkatabi kami ni Arsi (Balisacan). Nagulat nga kami, lumabas (ang EO). Nagulat siyempre,” he said.
(Arsi (Balisacan) and I are next to each other. To our surprise, (the EO) came out. Surprised, of course.)
President Ferdinand Marcos Jr. approved the order upon the recommendation of the Department of Agriculture (DA), to which he serves as the secretary, and the Department of Trade and Industry (DTI) amid the soaring price of rice.
Diokno said Marcos is aware that the implementation of price cap would not work in an ideal market condition but the President justified that he came up with the decision due to the prevalence of hoarding and price manipulation.
“The justification is meron mga market players who are misbehaving. Under ideal condition, hindi dapat nagpa-price control. Siguro, the conditions are not ideal. Nangyari na ‘yan ‘di ba? Tataas sibuyas, garlic, ngayon kamatis naman so baka kailangan talaga ang ganung measure,” he said.
(The justification is that there are market players who are misbehaving. Under ideal conditions, there should be no price control. Maybe, the conditions are not ideal. Didn't that happen? Onions, garlic, and now tomatoes will increase, so maybe that measure is really necessary.)
But Diokno noted that price cap only serves as a short-term measure against non-competitive practices by some market players.
“We cannot sustain it,” he said.
“The government recognizes that it also has adverse effects if allowed to linger for a longer period," he added.
In a separate statement on Monday, September 11, 2023, Diokno clarified that they fully support the order of the President, which they see as an essential stop-gap measure, and underscored the importance of supplementing it with additional measures to achieve long-term rice price stability in the country.
He said EO 39 also serves as a lifeline in order to extend much-needed relief to Filipinos grappling with the high rice prices.
Diokno also cited the importance of encouraging timely rice imports by the private sector.
He also proposed the full implementation of the Super Green Lane, which allows for advance processing and clearance of shipments for the country’s top-qualified importers to expedite rice imports.
“We are advocating cooperation with tollway concessionaires and operators to temporarily exempt trucks catering to agricultural goods from increased toll fees, ensuring the efficient transportation of rice,” Diokno said.
EO 39 received criticisms especially from the farmers group who is seen to be greatly affected by the order as it may result in lower farmgate prices of rice.
Last week, the Malacañang announced the termination of the appointment of Finance Undersecretary Cielo Magno “as she clearly does not support the administration and its programs for nation building.”
As reported, Magno, head of the DOF’s Fiscal Policy and Monitoring Group, quitted due to her opposition in the implementation of a mandatory price cap for rice. (SunStar Philippines)