“We are watching the supply and prices of rice.” This essentially was the message of the DA Secretary a few days ago. But the millions of Filipino eaters of this staple food – rice – have been waiting for more than a year now to buy rice at P20 per kg of rice.
The latest directive from President Bongbong Marcos, the DA Secretary who has been spending millions of the people’s money traveling abroad with his retinue of "expert" officials on economics, just pegged the price ceiling of rice at P41-P45 per kg, under his EO 39.
Rice producers’ spokespersons as well as farmers’ groups have made known their objections to such a guideline from the DA Secretary Bongbong Marcos.
They were hoping for a price ceiling at P30/kg or even at P35/kg. As usual this government administration does not listen to the rice producers, farmers organizations and retailers for their long-tested ground-level experience on rice production, marketing, retailing and other related activities to ensure sufficiency of supply of this staple food, including the right affordable pricing for millions of poor Filipinos.
The responsible officials, particularly Bongbong Marcos as the DA top honcho, probably believe they can just dictate the price cap for rice, and thus satisfy this critical nutritional need for Filipinos. The fact is well-meaning economists have come up with their own view on this price ceiling on the sale of rice.
First off, the economists are wondering why the 2024 budget has allocated 28 government agencies with confidential funds. The DA has its own confidential intelligence funds of P2.25-billion. Will this amount be used to make sure there will be enough rice supply at a cost of P20/kg for the poor Filipinos, who number almost 50 percent of the more then 112 million Filipinos, as of today?
Price caps gives a signal for sellers to wait for the lifting of such ceilings. And they will be tempted to hoard their supply, as they anticipate a reasonable time when they can sell at a profit.
Accordingly, such can limit the supply in the market. With rice shortage, the government will soon have to lift the ceiling, and enable those in the business of rice to market their ‘hoarded’ rice, and avoid losses, including possible business closures.
NEDA and the DA itself have been long-standing institutions in charge of avoiding any rice crisis, but are most likely aware that Filipinos cannot survive without sufficient rice supply, that should be affordable even to the poorest of the poor.
DA’s budget should have long been targeting realistic support for the rice farmers, such as latest technologies to increase their productivity, affordable costs of seedlings and other inputs, facilities and infrastructures to help them market their produce at a profit, addressing middlemen and retailers’ concerns, and as may be required the right public policy on importations.
The DA Secretary is the President, and he’s supposed to know his job. He should stop the rice crisis now!
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