Gov't asks retailers to shoulder burden as rice price cap to take effect Sept. 5
The government is asking retailers to shoulder the burden of the price cap it will implement on Sept.5 to control rice prices from surging, especially in Metro Manila.
Since the implementation of the Executive Order 39 that will impose a price cap for regular and well milled rice will start next Tuesday, Assistant Trade and Industry Secretary Agaton Uvero stressed the need for the retailers who purchased their stock at a higher price to sacrifice and help the nation.
"The government is asking the retailers to sacrifice for them to also help the people. Based on our computation there will be no losses but there will be no profit... So again, our rice retailers will have to sacrifice," Uvero said in a news forum in Quezon City on Saturday.
Uvero said the implementation of the price cap of P41 and P45 for regular and well milled rice, respectively, is just a "temporary measure" which "may be shorter than the usual 60 days". He added that the cap will be lifted once rice prices become stable.
The price cap can be lifted earlier than the usual 60-day period, he added. The recommendation to lift the price cap will come from the Department of Agriculture, Department of Trade and Industry or the Price Coordinating Council, said Uvero.
In a radio interview, Danilo Fausto, president of Philippine Chamber of Agriculture and Food Inc. said because of the price cap some of the retailers may stop selling rice.
"Some of them may stop selling rice if they will not be able to get a supply at a lower price. This may result in a shortage of rice in the market," he said.
Fausto admitted that he agrees with the implementation of the rice cap as long as it will not be implemented for more than two months.
"The number one enemy of productivity is price control. That is why the price control should be temporary, I think the longest implementation should be one or two months," he said.
Fausto noted that the "government should be prepared to have an alternative source for our consumers" in case the retailer will stop selling due to possible losses.
Uvero stressed that the government will prioritize the operation against hoarders who are the primary reason for the price surge.
"The price increase is artificial, it is not an ordinary demand and supply (problem), there are (traders) that take advantage of the lean season
