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Advocates Philippines
Assistance Program In The Works To Aid Small Rice Traders Affected By Executive Order
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In response to President Ferdinand R. Marcos Jr.'s Executive Order (EO) No. 39, an assistance program is being developed to provide support to small rice traders and retailers facing potential losses. This initiative aims to help them weather the challenges until rice prices stabilize, as announced by a trade official on Saturday, September 2, 2023.
Small-scale traders who purchased their rice stocks at higher prices are anticipated to suffer financial setbacks, prompting the government to explore options for extending assistance to prevent bankruptcies.
Trade Assistant Secretary Agaton Uvero, speaking at a news forum in Quezon City, acknowledged the predicament of small rice retailers who may be impacted by the President's EO, which imposes price caps on rice for a specified period. He stated, "The lead agencies in this matter are the LGUs, DILG, DA, DTI. When it comes to helping small businesses, DTI is always the lead agency, so there are discussions about subsidies and similar measures."
Uvero went on to mention that the DTI is actively working on programs to assist these businesses. He emphasized that these initiatives are still in progress, saying, "But these are in the works to help more... DTI also has programs on how to provide assistance. So, it's not final yet; it's in the works."
Uvero stressed that it is within DTI's mandate to support micro, small, and medium enterprises (MSMEs), many of which are involved in rice trading and retailing. However, he noted that these businesses have profited from previous commodity price increases and should be willing to make sacrifices for the benefit of the general public at this time.
"First, in business, many earn when prices continuously rise. So, many of them have already had a windfall profit; second, the government is asking retailers to make sacrifices to help the majority of the population," he pointed out.
He also mentioned that, based on their calculations, it might still be possible for retailers to sell rice without incurring losses, even if they don't make a profit. While their efforts might not fully compensate for their previous gains, it could help stabilize the cost of the capital.
While requesting sacrifices from rice retailers, Uvero assured that the government will take action against hoarders and profiteers, who are the primary culprits behind the artificial rice shortage and relentless price increases.
Regarding the duration of the retailers' sacrifices, Uvero suggested it might be less than two months or until additional rice supplies arrive to bring stability to rice prices. He explained, "The recommendation for price stabilization will come from the DA when additional supplies arrive. The government is also promoting parallel importations, especially Indian rice, and the harvest season is approaching."
"So, it may be shorter than the usual 60 days. It depends on the members and the studies, but it may be shorter even than the usual 60-day period for a price freeze. This is because a price cap doesn't have a fixed period, unlike a price freeze, which has a 60-day limit."
Small-scale traders who purchased their rice stocks at higher prices are anticipated to suffer financial setbacks, prompting the government to explore options for extending assistance to prevent bankruptcies.
Trade Assistant Secretary Agaton Uvero, speaking at a news forum in Quezon City, acknowledged the predicament of small rice retailers who may be impacted by the President's EO, which imposes price caps on rice for a specified period. He stated, "The lead agencies in this matter are the LGUs, DILG, DA, DTI. When it comes to helping small businesses, DTI is always the lead agency, so there are discussions about subsidies and similar measures."
Uvero went on to mention that the DTI is actively working on programs to assist these businesses. He emphasized that these initiatives are still in progress, saying, "But these are in the works to help more... DTI also has programs on how to provide assistance. So, it's not final yet; it's in the works."
Uvero stressed that it is within DTI's mandate to support micro, small, and medium enterprises (MSMEs), many of which are involved in rice trading and retailing. However, he noted that these businesses have profited from previous commodity price increases and should be willing to make sacrifices for the benefit of the general public at this time.
"First, in business, many earn when prices continuously rise. So, many of them have already had a windfall profit; second, the government is asking retailers to make sacrifices to help the majority of the population," he pointed out.
He also mentioned that, based on their calculations, it might still be possible for retailers to sell rice without incurring losses, even if they don't make a profit. While their efforts might not fully compensate for their previous gains, it could help stabilize the cost of the capital.
While requesting sacrifices from rice retailers, Uvero assured that the government will take action against hoarders and profiteers, who are the primary culprits behind the artificial rice shortage and relentless price increases.
Regarding the duration of the retailers' sacrifices, Uvero suggested it might be less than two months or until additional rice supplies arrive to bring stability to rice prices. He explained, "The recommendation for price stabilization will come from the DA when additional supplies arrive. The government is also promoting parallel importations, especially Indian rice, and the harvest season is approaching."
"So, it may be shorter than the usual 60 days. It depends on the members and the studies, but it may be shorter even than the usual 60-day period for a price freeze. This is because a price cap doesn't have a fixed period, unlike a price freeze, which has a 60-day limit."
Sep 3, 2023
