Not the solution to rice problem

Today, President Marcos’ Executive Order No. 39 setting price caps on the prices of both regular- and well-milled rice, at P41 and P45, respectively, takes effect. It was supposed to be effective immediately after Mr. Marcos signed the order on Aug. 31, but several small-scale rice traders balked that they might stand to lose a lot of money. Rice retailers in the provinces of Bulacan, Oriental Mindoro, Leyte, and Cebu, among others, expressed disappointment with EO 39’s price caps on rice, saying that they bought their rice stocks several weeks back, and paid more than P50 per kilo as capital. Selling their stocks of rice at less than P50 will make them lose around P500 per sack of rice.

Many rice traders are reportedly “groaning” after hearing this news; they are dismayed that this order came as a surprise to them since the prices of rice spiked inordinately a few weeks back, but the government did not say anything about it. They are requesting that the government should give them time to sell their existing stocks that they bought at more than the ceiling prices set by EO 39. One long-time rice retailer (40 years) in Tacloban City, Imelda Dy, is quite dismayed at this order, saying that “if we follow this order, we would lose money and may have to close down.”

“Government should put its money where its mouth is,” said Sen. Francis “Chiz” Escudero, criticizing Mr. Marcos’ issuance of the executive order setting a price cap on rice, which is the Filipinos’ main staple food. Escudero echoed Sen. Risa Hontiveros who called the issuance of the executive order a “lazy job,” arguing that the intention to set caps on the prices of rice will not address the illegal price manipulations and hoarding by rice traders. Hontiveros said further that if there are people doing these illegal acts, these people should be caught. She also noted that prices of rice have naturally spiked due to the government’s failure to “provide aid and insurance to farmers whose crops were affected by recent weather disturbances.”

The Makabayan bloc in the House of Representatives has dismissed Mr. Marcos’ move as a “public relations stunt.” For House Assistant Minority Leader Rep. Arlene Brosas, EO 39 is actually a “desperate move to quell the people’s mounting frustration over his failure to deliver his campaign promise” of making the price of rice as low as P20.

Issuing EO 39 is a consequence of the lack of a strategic plan to address the perennial problems that beset our agriculture-based economy—a manifestation that the prime agency with this mandate tends to react to these problems on a knee-jerk, reactive basis. It is compounded with the fact that Mr. Marcos has not relinquished his leadership of this vital department and has not appointed someone who could provide much more holistic, pragmatic, and strategic solutions to our agricultural problems.

Reducing the prices of basic commodities like rice without programs to address the runaway prices of farm inputs and other related farm expenses is addressing only part of the problem of the perennial insufficiency of rice production, in a country that boasts of several areas considered “rice granaries.” A holistic, strategic plan that factors in all aspects of this perennial problem is needed, not a price ceiling that will only have a palliative effect.

Ironically, an institutional rice institute was established in this country to ensure that we will have access to cutting-edge technology in rice cultivation that could propel us to be Asia’s foremost rice supplier. This institute even trained rice farmers in other countries like India and Vietnam. Thanks to the training their rice technicians went through here, these countries are now among the suppliers of rice to the Philippines.

We are all facing a dire situation with the prices of our basic food and other important items increasing rapidly. Yet this government thinks it can solve this by simply setting a price ceiling of rice, without putting in place safety nets for those who get to lose in the process. This is an indolent way of addressing a deep and basic problem that privileged government officials do not face on a daily basis.

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