Don’t panic. This was the call of the Philippine Chamber of Commerce and Industry (PCCI) amid a “panicky” situation among consumers following a government decision to impose price ceiling on rice at P41 per kilo for regular milled and P45 for well-milled, effective Tuesday, Sept. 5. 

PCCI President George T. Barcelon said that he discussed this with Department of Trade and Industry (DTI) Secretary Alfredo E. Pascual and they agreed to help calm down the situation because there is enough rice supply. Both are currently attending the 23rd ASEAN Economic Council Meeting in Jakarta in preparation for the 43RD ASEAN Leaders Summit in Indonesia.   

“Don’t panic,” said Barcelon as he cautioned that the worse that can happen is a panic situation among consumers. He said that the price ceiling on rice is good only for six months and DTI is looking into the price range.  

PCCI noticed that there is enough supply so there is “no need to panic”. He explained that if the end-consumers resort to panic, they will have to buy more than what they need causing shortage in supply.  

“Buy only what you need,” he said as he warned that if there is an artificial supply shortage due to panicky consumers, this can only add to price pressures that could trigger higher inflation level and further bolster the call in the Senate for the proposed P150 increase in daily wage rate.  

“We know the plight of workers, but we need to look at the bigger picture because other sectors have not yet recovered and there is another call for hike in salary,” he said noting that he was informed of two garment firms in Cebu closing due to business challenges affecting an estimated 6,000 workers. “All of these are interrelated, and if we panic, we become part of the problem,” he said.

Barcelon also said the government is seriously looking into hoarding and price profiteering.  “They have to look at supply chain or demand and look at capacity and importation,” he added.  

Like most businesses, the PCCI chief said, “I am not in favor of price ceiling.” He explained that the market should be allowed to operate based on supply and demand. “If we compromise, this natural play may not work out so as businessmen we prefer supply and demand to work,” he said.

He noticed that when a price control is imposed, the flip side is panic. “So, we need a balancing act. We don’t want it (price cap), because that would not end well and not good for the economy,” he said. 

But added that since Executive Order 39 has already been issued, “we just have to support that.”