To prevent unreasonable price increases in the country, four government agencies are now allowed to import certain products — from agriculture and food items to medicines and other healthcare products — using a special buffer fund in their annual budget.       

This was contained in a Joint Memorandum Circular (JMC) on “Strengthening the Role of Local Price Coordinating Councils and the LGUs in Managing Unreasonable and Excessive Price Increase of Basic Necessities and Prime Commodities” signed by the Department of Agriculture (DA), the Department of Health (DOH), the Department of Environment and Natural Resources (DENR), Department of Trade and Industry (DTI), and Department of the Interior and Local Government (DILG). Except for DILG, these agencies shall allocate a special “buffer fund” in their annual General Appropriations Act (GAA) budget.               

The special buffer fund, according to the JMC, will be used exclusively by DA, DOH, DENR, and DTI to “procure, purchase, import or stockpile any basic necessity or prime commodity.”
            

“The commodities shall be distributed for sale to the areas where there is shortage of supply or where there is a need to effect changes in the prevailing prices after consultation with the concerned sectors. The implementing agency shall determine the volume/quantity of the commodities needed for stockpiling in the affected area,” the JMC said.  
            

 “For this purpose, the implementing agency may enter into contracts, agreements with concerned supplier, distributor, or retailer,” it added.

 The JMC, which aims to strengthen the role of Local Price Coordinating Councils (LPCC) and Local Government Units (LGUs) in managing unreasonable and excessive price, didn’t specify the ideal amount that these government agencies should funnel into the fund. 

 To recall, DA, DOH, DENR, and DTI are the government agencies that have jurisdiction over basic necessities and prime commodities as defined in the Price Act.

 Republic Act No. 7581, otherwise known as the Price Act, ensures the availability of basic necessities and prime commodities at reasonable prices at all times without denying legitimate businesses a fair return on investment.

 For its part, DILG, as member of the National Price Coordinating Council (NPCC) and as the agency responsible for strengthening local government capabilities aimed toward the effective delivery of basic services, has jurisdiction over the LGUS with regard to the reactivation LPCCS.

 These government agencies agreed that this JMC shall apply to all activities relevant to the implementation of the provisions of the Price Act, its amendments and the Rules and Regulations implementing the same, either conducted separately by the implementing agencies, solely by the LPCC or jointly or in coordination with one another.
            

The problem, however, is that when it comes to products like rice, the country’s main staple, the government no longer has the power to regulate its price because of the Rice Tariffication Law, which allowed the unlimited importation of rice in the country and stripped off DA’s National Food Authority’s (NFA) stabilization mandate.

When sought for clarification, Agriculture Secretary William Dar confirmed that rice is covered in the JMC but added that "the country still has enough rice for now."

   In case there's a need for the government to import the staple, it will still need the approval of the President, he further said.