Government Orders Price Cap For Rice Amid ‘Alarming’ Price Surge

Government Orders Price Cap For Rice Amid ‘Alarming’ Price Surge

In response to the soaring inflation rates and economic challenges faced by its citizens, the Philippines has introduced a price cap on rice, a staple food item in the country.

President Ferdinand Marcos Jr. has signed an executive order to address the economic strain, particularly on marginalized and underprivileged segments of the population.

Under the new order, maximum prices for rice have been set at 41 Philippine pesos ($0.72) per kilogram for regular milled rice and 45 pesos ($0.79) per kilogram for well-milled rice.

Read Also Messi’s Next Match Is The Most Expensive Major League Soccer Game Ever (DETAILS)

The decision comes as a response to various factors contributing to the alarming rise in retail prices, including illegal price manipulation, such as hoarding by opportunistic traders and collusion among industry cartels. Additionally, external factors such as the conflict in Ukraine, India’s ban on rice exports, and volatile oil prices have impacted the situation.

President Marcos, who also serves as the agriculture minister, has taken several measures to address the issue comprehensively. These include directing customs authorities to intensify inspections of rice warehouses to combat hoarding and illegal importation. He has also instructed the competition watchdog to take action against cartels and merchants abusing their dominant market positions.

The Philippines has witnessed a significant rise in rice inflation, increasing from 1 percent in January 2022 to 4.2 percent in July 2023, as reported by the National Economic and Development Authority. The country has experienced some of the steepest increases in the cost of living in Asia over the past year, with overall inflation reaching a 14-year high of 8.7 percent in January before gradually easing to 4.7 percent in July.