THE House of Representatives Committee on Ways and Means Chair Joey Sarte Salceda of the 2nd District of Albay expressed support to President Ferdinand Marcos, Jr.’s decision to set a rice price ceiling.
He said the President’s decision works “as a signal against potential price manipulation and hoarding in the domestic rice market” and that “it worked” as a signal to the global market.
“It’s a gambit that worked with the global rice market. As long as we have a gameplan for the next steps – such as boosting local rice supply and diversifying our import sources – we will come out of this crisis strong,” Salceda said.
The solon from Albay remarked that the Chief Executive’s action to put up a rice ceiling as an initial and immediate action to address abuse in the rice market is a good idea. He said the long-term solution is to make sure the country increases both its domestic supply and diversify sources of imports, adding that he is certain the Department of Agriculture is already working on these.
“As a signal to the global market, the actions of the Marcos administration have also worked. You see, the behavior of the Philippines massively affects the movement of global rice prices. So, our signalling that we will be aggressive against price manipulation seems to have shown the world market that we will not condone artificial jumps in the price of rice.”
Salceda said that as a sign that the initial shock in price last July were “artificial,” the House tax chair cited world rice spot prices, which, at US$332.4 per metric ton are now lower than the July peak of US$384, and is almost at the pre-Indian export ban price of US$332.
“What that is basically saying is that we should be able to source from other countries. ASEAN partners like Vietnam and Thailand are also some of the world’s leading producers. We should work on hammering out agreements with them by now.”
Salceda also said that the country should consider sourcing from other non-ASEAN countries like Pakistan and the United States.
He said they did something similar during an earlier rice price crisis, for example in 2008 when the National Food Authority imported rice from California and distributed it to its outlets.
Salceda recalled that during the 2008 rice price crisis, India undertook a similar export ban which also disturbed the world rice markets and sent the price of rice in the Philippines upward.
“This will dissipate because the source of the world price increase is artificial. The world price situation is also starting to normalize,” Salceda added.
Make EO 39 more responsive to regional conditions
Salceda, however, appealed that Executive Order No. 39, which set the national rice price ceiling, “be made more flexible to address regional market conditions.”
“The situation will vary per region, so a national rice price ceiling should be made more responsive to local supply-demand dynamics.”
Salceda said that in rice deficit or totally rice-dependent areas like the National Capital Region, the situation will be different from, say, a rice-surplus region like Region II so, some update to the EO will be necessary most likely when it plays out later, the solon added.