President Ferdinand Marcos Jr. on Wednesday announced the lifting of price caps on rice 29 days after first imposing the measure covering both the regular milled and well-milled staple.
He told reporters covering the distribution of confiscated grains in Taguig City that the price caps have been removed “as of today,” Wednesday, October 4.
The Federation of Free Farmers (FFF) welcomed their removal, saying this was among the string of “important moves to help farmers” following the decision to set aside the proposal of the economic managers to lower the tariffs on rice imports, order the National Food Authority to increase its palay buying price to P23 per kilo and the release of P13 billion in tariff collection from rice imports as financial assistance for rice farmers.
According to the FFF, the President’s decision “will stabilize palay prices at the ongoing harvest season and provide incentives for farmers to expand their production and reduce our reliance on imports.”With recently harvested rice entering the market at the same time, rice retail prices were to drop quickly and without the need for price caps, it added.
But the government should continue the campaign against smugglers and price manipulators who have ruined farm gate prices and keep rice retail prices artificially high for consumers, the FFF said.
As for the Samahang Industriya ng Agrikultura (SINAG), it said the rice price caps has proven successful by averting a rice shortage no matter that rice prices were high due to hoarding, profiteering and smuggling.
“Two weeks ago we recommended the lifting of the price cap by the first week of October with the start of the harvest season. Farmgate is now steady at between P23 to P25 per kilo, the retail of well-milled rice sold between P43 to 44 per kilo, way below the price cap,” said Jayson Cainglet, SINAG executive director, said in a separate statement.
Earlier this week, Gerald Glenn Panganiban, director at Bureau of Plant and Industry (BPI), gave assurance the Philippines has a stable supply of rice in the last quarter of the year.
Panganiban said rice harvest is expected to hit 1.9 million metric tons (MT) this month and boost the nation’s buffer stock to 74 days from 52 days at present.
Department of Agriculture monitoring of public markets in the National Capital Region show the price of well-milled rice ranges from P44 to P48 per kilo and regular milled from P40 to P44 per kilo.
Imported well milled rice is sold at P45 to P48 per kilo. The price of imported regular milled rice has not been established.
Imported special variety rice retail from P53 to P60 per kilo while premium rice retail from P52 to P58 per kilo.
For local rice, the special variety sell from P54 to P62 per kilo while premium sell from P47 to P60 per kilo.
As much as 2.62 million metric tons of rice are at the ports waiting to be unloaded as of 28 September this year.
The bulk or 2.35 million metric tons or 89.7 percent of total came from Vietnam.
