MANILA - Finance Secretary Benjamin Diokno said President Ferdinand Marcos Jr justified the issuance of the rice price ceiling by saying it would help resolve the issue of misbehaving market players and hoarders.

Marcos signed Executive Order No. 39 on August 31, mandating a nationwide price ceiling for regular milled rice at P41 per kilo and well-milled rice at P45 per kilo to rein in the soaring cost of the staple grain.

• Marcos Jr sets P41, P45 price ceilings on rice nationwide
• Price ceiling of some rice varieties to take effect Sept. 5 — Palace

In a briefing on Friday, Diokno said price cap in a normal market condition won’t work. But circumstances were different as seen in sudden price spikes in commodities that could warrant a special mitigating measure.

“Yung justification ng Presidente, meron talagang mga market players who are misbehaving. Kasi under ideal market conditions, hindi talaga magwo-work yung price control. Pero sabi niya hindi naman talaga ideal,” he said.

“Diba iba-ibang product— biglang nagtaas yung sibuyas, garlic. Ngayon kamatis naman diba? So meron talagang hoarders, speculators so baka kailangan talaga,” added Diokno.

Diokno stressed that the measure would only be implemented in the near term as he acknowledged its adverse effects on the supply of rice “if allowed to linger for a longer period.”

“For example, kung nahuli na yung mga hoarders, and of course kung mayroon ng harvest or nariyan na yung importation. So I would say baka one month,” he said.

• Violators of rice price ceiling to face penalties: DTI

Meanwhile, Diokno revealed he was surprised by the price ceiling EO, along with National Economic and Development Authority Secretary Arsenio Balisacan.

The Finance chief said he was on a work trip in Japan with Balisacan when the news came out.

“Magkatabi kami ni Arsi (Balisacan), we were talking with the Japanese ministers. Nagulat nga kami e,” he admitted.

But Diokno said Marcos, who concurrently heads the Department of Agriculture, cited the presence of market hoarders and speculators for his decision.

The DOF, along with NEDA, has also proposed the following measures to ensure that rice supply remains sufficient at reduced prices:

• Reduce rice import tariff rates temporarily to 0 percent or maximum of 10 percent to arrest the surge in prices
• Encourage the timely importation of rice by the private sector
• Fully implement the Super Green Lane that authorizes the use of Electronic Data Interchange that will allow for the advance processing and clearance of the shipments of the country’s topmost qualified importers
• Work with tollway concessionaires/operators for the temporary exemption of trucks that cater to agricultural goods from the increase in toll fees

The government has also begun distributing subsidies to small rice retailers affected by price controls.

• Gov't begins aid distribution to affected retailers amid price cap on rice
• Gov't eyes giving aid to rice retailers by mid-September

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