Ilonggos welcomed the removal of the price cap imposed on regular and well-milled rice (R/WMR) starting early last month, recognizing its benefits to traders, retailers, and consumers.
Iloilo Grains Businessmen Association (IGBA) president Ildefonso Dolorfino said the decision of President Ferdinand R. Marcos Jr. to lift the price ceiling favors traders and retailers since it will give them leeway to strategize and gain in their rice trading business.
Dolorfino said the President may have noticed the sufficient stocks of rice which ensures that the prices will no longer be affected.
He added, however, that it would be better if the cap was not lifted immediately to enable a more thorough study of the result of the intervention.
IGBA is a new group composed of palay traders, retailers, millers and importers created after Executive Order 39 took effect on Sept. 5.
Currently, the buying price of fresh palay is at P17.50 to P18 per kilogram but is gradually increasing and may reach P19 to P20 a kilo following the lifting of the price control.
Dolorfino said while it is advantageous to farmers and traders, he expressed apprehension about a possible shortage due to uncontrolled pricing.
Iloilo Governor Arthur Defensor Jr. said lifting the price cap means that “the harvest is now in full swing and the supply has recovered,” and the dynamics of the rice industry are working.
“It is really best when it is market-driven,” he said in a press conference.
Iloilo City Mayor Jerry P. Treñas said since there is no more price cap, the prices will be based on market forces.
“The lifting of the rice price cap is a welcome development,” he said in a text message.
National Economic and Development Authority Regional Director for Western Visayas Arecio A. Casing Jr. said he believed one reason for lifting the cap is the increased production of rice.
“There is no need now to control the price of rice, so let us have market forces do its job. Due to the increased production, we are hoping that this will result in the lower price of rice,” he said in an interview.
Casing said the increased production of rice would translate to better prices for farmers and benefit both consumers and producers.
He said the price cap limited the production of farmers because of the price restriction, but benefited consumers who enjoyed the lower prices.
“Given the increased production, the government deems it fit to eliminate the price cap,” he said.Perla Lena/PNA
