The Communiqué
September 10, 2023
A leader who refuses to admit failure to achieve his campaign promises is desperate enough to compromise the well-being of the less fortunate just to prove his illusion of success.
In 2022, President Ferdinand "Bongbong" Marcos Jr. claimed that the Philippines is "getting closer and closer" to his dream when Kadiwa ng Pangulo operated to sell rice for P25/kilo in Camarines Sur, but what will be the implications of his dream without the government outlets?
Not long after signing the controversial Maharlika Investment Fund into law despite its questionable intentions, Marcos Jr. recently released Executive Order No. 39, which sets a mandated price ceiling for rice at P41 for regular milled rice and P45 for well-milled rice per kilo.
During his 1st year, the current pricing for rice reached up to P56 per kilo, far from his pledge in the 2022 election to decrease its price down to P20 for a kilo as a response to cater the needs of his said priority on his term—the poor. Looking back, this promise became a huge factor that won him his Filipino supporters, which mostly came from the vulnerable sectors.
Given the implemented price caps, isn't it a grim foreshadowing that the president's pledge will be just an empty litany? An open attempt to feed the people with ideal resolve on the long-term scarcity in the Philippine setting, similar to the usual campaign approach of those recorded and unrecorded corrupt officials in the government.
According to the recommendation of the trade and agricultural departments, approved by the president, the reason behind the implementation of the price ceilings is to prevent illegal price manipulation of rice, which they pointed out as one of the main culprits behind the sudden increase and price imbalance.
However, the pre-existing crisis in the rice industry of the Philippines is not solely attributed to illegal price manipulation but also due to environmental disasters, rice importation, and mismanagement. This is evident in the data from the past terms started from Former President Marcos Sr.'s administration in 1965.
It is more sensible to view that the point of the problem is deeply rooted in the lack of support and security from the government towards the condition of the local farming industry, which is visible with the implementation of Republic Act No. 11203 or the Rice Tariffication Law, in 2019, signed by former President Rodrigo Duterte. Tracing its impact, this law not only destroyed the food self-sufficiency of the country but forced the local farmers to compete with huge rice importers mainly from Vietnam and Thailand that ought to offer a "lower" cost of rice on the market.
Similarly, not even long after the imposition of the mandated price ceiling, many farmers are already calling out for reconsideration due to the devastating impact of the provision, which directly affects the farmgate price from P24–P27 per kilo before, down to P16–P19. Additionally, considering the dilemma about the necessary distribution that they can do on the stock of rice that they have, which is intended to be sold at a price reliant on the amount they paid from their suppliers.
Instead of eliminating the hoarders and huge private traders, who are viewed as the illegal manipulators behind the spike in pricing on rice, local farmers, the consumers that will be forced to just swallow whatever aftermath of the refutable provision, and the small retailers, who are not prepared for the hasty implementation of the Order are mostly likely to be affected.
Furthermore, even if the country becomes self-sufficient in terms of food supply, the attainment of P20 per kilo of rice will be unattainable, citing the Department of Agriculture Undersecretary Leocadio Sebastian himself.
Further to that, according to the UN's Food and Agriculture Organization (FAO), product affordability is the problem since there's no current suspected food shortage crisis in the Philippines. Hence, the detrimental effects of food inflation, at 6.3% for the month of August, are one of the largest pioneers of the unresolved issues of poverty and hunger in the country.
Before implementing an order, it is necessary to first take into consideration the economic conditions to determine if it will live up to the legislator's dream as introducing a sudden proclamation that is deemed to impose an uncertain resolve on a relevant societal complication might only worsen the situation. More importantly, the sectors that will be put at stake in the process should be evaluated.
To consult the primary actors—farmers and retailers—on Executive Order No. 39 is necessary to be able to come up with a sustainable solution that is humane and significant. In the case of PBBM's proposition of EO 39, the local farmers will take most of the impact from the blow if there’s an imbalance with the analysis on cost of production, farmgate, and retail prices on rice.
The government should learn to connect with their constituents and not decide on public-related concerns to themselves. Isolating the case will just give birth to major complications in laws and proclamations once fed to the prime affected sectors, driving the poor and uninformed to their tragic ends.
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