The National Economic and Development Authority (NEDA) asserted that President Marcos’ order to set a cap on rice prices is justified, serving as a temporary measure against unscrupulous traders.

According to the NEDA, there has been a significant upward trend in rice prices in recent weeks, raising concerns about potential price manipulation by certain market players.

“We note that the price of rice has been sharply increasing over the past weeks, which is inconsistent with the apparent supply and demand situation,” NEDA said in a statement on Sunday, Sept. 3.

Based on the price monitoring data released by the Department of Agriculture, the current selling prices of local regular milled rice as of Aug. 30 range from P42 to P55 per kilo, while imported regular milled rice is at P43.

Likewise, well-milled rice is priced between P47 and P56 for local varieties, while imported well-milled rice is at P52.

President Marcos' Executive Order No. 39 has set price limits of P41 per kilo for regular milled rice and P45 per kilo for well-milled rice, while there are no limits in place for special and premium rice.

The Foundation for Economic Freedom (FEF) warned on Saturday, Sept. 2, that imposing a price ceiling would harm Filipino consumers, farmers, and the economy.

FEF suggested that the government should consider reducing import tariffs from 35 percent to 10 percent as a better solution to address the increasing rice prices.

However, NEDA explained that the imposition of price ceilings, scheduled to take effect on Tuesday, Sept. 5, is intended by the Marcos administration to address two primary concerns.

“It will immediately reduce the price of rice, and it penalizes and consequently discourages hoarding, further decreasing the price of rice,” the agency said.

NEDA, however, assured that the price cap, which has not been imposed since July 1995, is just “a temporary measure.”

“We are confident that the imposition of a price ceiling is only a temporary measure. We expect the rice harvest to commence soon and anticipate that other initiatives will produce the desired result,” the agency said.

NEDA added that the implementation of a price ceiling is not a standalone measure, as law enforcement authorities are working to combat hoarding, excessive profiteering, smuggling, and participation in rice cartels.

Despite the government's price control, NEDA stated that the country has an adequate rice supply for the third quarter, as the upcoming harvest season commences this month and additional import orders have already been secured.

“There will also be enough rice for the rest of the year,” NEDA assured.

However, the agency admitted that the local agricultural sector is currently facing difficulties, particularly due to the impact of the El Niño Southern Oscillation (ENSO) phenomenon.

NEDA said that ENSO has intensified the Southwest Monsoon, leading to below-normal rainfall in many Pacific countries towards the end of the year, which negatively affects the farm sector, especially rice production.

Furthermore, NEDA cited that certain rice-exporting nations’ protectionist behavior, like India's ban on non-basmati rice exports, along with rice-importing countries' aggressive measures to secure supply, has resulted in a decline in global rice trading volume.

“The Government’s priority amid this situation is to ensure that the country has an ample supply of affordable rice,” NEDA said.

The Philippines ranks among the largest global importers of rice.

“The Inter-Agency Committee on Inflation and Market Outlook continues to closely monitor the prices of rice and various other goods to provide anticipatory policy advice on dealing with inflation,” NEDA said.

“The Department of Agriculture continues its efforts to ensure that there will be enough rice for all Filipinos,” it added.