Diokno: Econ team backs rice price cap as crucial stop-gap solution to provide immediate relief; proposes additional measures

The Philippines’ economic team reiterates full support and endorsement of the President’s recent decision to impose a price cap on rice while emphasizing the importance of immediately implementing a comprehensive set of measures aimed at securing long-term stability within the rice market.

“Executive Order No. 39 was issued by the President as the chief executive and the concurrent secretary of the Department of Agriculture. EO 39 serves as a lifeline, extending much-needed relief to Filipinos grappling with the high rice prices,” Secretary Diokno said in a statement on Monday.

Under EO No. 39, the mandated price of regular milled rice is PHP 41.00 per kilogram while well-milled rice is at PHP 45.00 per kilogram.

The Finance Secretary emphasized that the economic team views EO 39 as an essential stop-gap measure, and underscored the importance of supplementing it with additional measures to achieve long-term rice price stability in the country.

“We agree with the President that implementing a price cap on rice can help achieve two objectives: stabilizing rice prices and extending immediate support to our fellow countrymen,” he added.

The imposition of a price cap on rice is geared at addressing non-competitive practices by some market players and complemented by measures to discourage hoarding, thereby reducing the price of rice.

Secretary Diokno however noted that EO 39 can be proven effective in the near term, but should not persist for an extended period.

The Finance chief said the President has directed the economic team to implement measures that will mitigate the negative impact of the price controls on rice retailers and farmers.

The Department of Finance (DOF) has proposed a comprehensive approach, including the temporary reduction of the 35 percent rice import tariff rates, both ASEAN and Most Favored Nation (MFN) rates, to zero percent or a maximum of 10 percent, to arrest the surge in rice prices.

Additionally, the Finance Secretary clarified the importance of encouraging timely rice imports by the private sector. The full implementation of the Super Green Lane, which allows for advance processing and clearance of shipments for the country’s top-qualified