Salceda: Marcos rice price gambit works as a signal to the global markets
HOUSE committee on ways and means chairman and Albay 2nd District Rep. Joey Sarte Salceda on Monday said he supports the setting of a rice price ceiling “as a signal against potential price manipulation and hoarding in the domestic rice market” and that “it worked” as a signal to the global market.
“As an initial and immediate action to address abuse in the rice market, it’s a good idea. The long-term solution is to make sure we increase both our domestic supply and diversify our sources of imports.
I am certain the Department of Agriculture is already working on these,” Salceda said.
“As a signal to the global market, the actions of the Marcos administration have also worked. You see, the behavior of the Philippines massively affects the movement of global rice prices.
So, our signalling that we will be aggressive against price manipulation seems to have shown the world market that we will not condone artificial jumps in the price of rice,” Salceda said.
Salceda said that as a sign that the initial shock in price last July were “artificial,” the Albay solon and House tax chair cited world rice spot prices, which, at $332.4 per metric ton are now lower than the July peak of $384, and is almost at the pre-Indian export ban price of $332.
Salceda also said that the country should consider sourcing from other non-ASEAN countries like Pakistan and the United States.
“We’ve seen this crisis before. We know how to deal with it. It mostly involves signalling to our world partners that we will not over-import, so that they don’t anticipate and drive prices up,” Salceda added.
Salceda recalled that during the 2008 rice price crisis, India undertook a similar export ban which also disturbed the world rice markets and sent the price of rice in the Philippines upward.
“This will dissipate because the source of the world price increase is artificial. The world price situation is also starting to normalize,” Salceda said.
Salceda, however, appealed that the Executive Order No. 39, which set the national rice price ceiling “be made more flexible to address regional market conditions.”
