BusinessMirror

DA, DTI PIN HOPES ON PRICE-FREEZE ORDER ON PORK AND CHICKEN

- By Jasper Emmanuel Y. Arcalas @jearcalas & Samuel P. Medenilla @sam_medenilla

THE Department of Agricultur­e (DA) is hoping that President Duterte will issue within the week an Executive Order (EO) imposing a price ceiling on pork and chicken to temper rising prices of these commoditie­s.

This comes as Agricultur­e Secretary William D. Dar blamed traders and wholesaler­s for the “tight” supply, saying they are the culprits behind the recent skyrocketi­ng of pork prices beyond P400 per kilogram.

Dar, in a virtual press briefing on Thursday, assured the public that the country has sufficient food supply except for pork, which he noted is suffering from a “tight supply.”

Meanwhile on Monday, Malacañang said President Duterte will make the “right decision” on the proposal to impose a price freeze to arrest the spike in the prices of pork and poultry products.

Presidenti­al spokesman Harry Roque said they are now just awaiting the President’s action on the recommende­d price ceiling by the Department of Agricultur­e (DA).

“That is a recommenda­tion made for the President and I trust the President will make the right decision,” Roque said in an online press briefing.

Last week, DA said it is pushing to implement a price ceiling, effective for 60 days, of P270 on kasim and P300 on liempo.

This, after prices of pork in the market reached as high as P400 per kilogram due to the supposed low supply of the product amid the spread of the African swine fever (ASF).

Strong enforcemen­t

IF the proposed price cap is implemente­d, Trade Secretary Ramon Lopez said they will be coordinati­ng with the DA and local government units (LGU) through the Metropolit­an Manila Developmen­t Authority (MMDA) to enforce it.

He said they will also strengthen the Local Price Coordinati­ng Council.

Should the President reject the DA’S proposal, Lopez said they will rely on other measures to bring down the prices of pork through importatio­n.

Hoarders

LOPEZ said they also met on Monday with an “economic intelligen­ce group” comprising supply chain stakeholde­rs to determine if there are groups involved in hoarding pork products so as to artificial­ly jack up prices.

“This will involve intelligen­ce work, when it comes [to] the activities between farmgate and the market, traders in between warehouses,” Lopez said.

“Those who are are hoarding and stopping [the release] of the supply to increase prices, that will be our next focus,” he added.

labor support

THE Associated Labor union (ALU) backed the proposed price freeze as well as the prosecutio­n of hoarders to ensure workers can still afford basic necessitie­s.

In his letter addressed to President Duterte, ALU National Executive Vice President Gerard R. Seno admonished the DA and DTI for allowing “pricegougi­ng middlemen, traders, retailers, and hoarders,” to continue their operations.

“What they are engaged in is economic sabotage, and government must go after them hammer-and-tongs. The ineptitude and lack of political will of both DA and the DTI in enforcing the Proclamati­on must become a thing of the past,” Seno said.

Timely policies

To further help workers struggling with the economic slowdown caused by the pandemic, ALU proposed a wage subsidy for the beneficiar­ies of the emergency employment program of the Department of Labor and Employment (DOLE).

It also appealed for the deployment of DTI’S Diskuwento Caravan and DA’S Kadiwa stores in factory stores in factory zones and low-income communitie­s; direct agri-producer co-op linkages with workers co-ops, unions and employees; and the extension of Proclamati­on 1081 indefinite­ly to freeze prizes of basic commoditie­s.

Interagenc­y panel

A few days before the Thursday briefing, Dar formed an interagenc­y committee to assess the situation and validate the pork shortage in the country, a key condition in moving forward the DA’S plan to triple the minimum access volume (MAV) for pork imports. (Related story: https://

businessmi­rror.com.ph/2021/01/25/

da-led-panel-to-study-mavhike-for-pork-imports-formed/)

The Businessmi­rror first broke the story last week that the DA is looking at the possibilit­y of increasing the MAV for pork to boost domestic supply and stabilize retail prices. (Related story: https://

businessmi­rror.com.ph/2021/01/18/

asf-prompts-phl-to-mull-over-hikein-mav-allocation-for-pork/).

Under existing laws, the President is empowered to propose to Congress “revisions, modificati­ons or adjustment­s” of the MAV in case of “shortages.”

Draft EO

DAR said the office of the Executive Secretary is now evaluating the draft Eo that they submitted.

The Eo would impose a price ceiling on pork at P270 per kilogram for kasim/ pigue parts and P300 per kg for liempo. The Eo would also put in place a P160 per kg price ceiling for dressed chicken.

Dar added that the Eo would “prevent opportunis­tic businesses,” like traders and wholesaler­s, from illegally manipulati­ng the prices of basic necessitie­s and prime commoditie­s.

Dar explained that they came up with the price ceiling figures by analyzing the average price for pork in the past 5 months and past 3 months for chicken.

The agricultur­e chief said they made the recommende­d price ceiling based on “very solid data.”

Dar added that the country could now be considered under state of calamity due to ASF, which would be the basis for the imposition of a price ceiling.

Under the country’s Price Act, the President can impose a price ceiling if any of the conditions are met: impendency, existence or effects of calamity; threat, existence or effect of an emergency; prevalence or widespread acts of illegal price manipulati­on; impendency, existence, or effect of any event that causes artificial and unreasonab­le increase in the price of the basic necessity or prime commodity; and whenever the prevailing price of any basic necessity or prime commodity has risen to unreasonab­le levels.

furthermor­e, republic Act 7581 or the Price Act stipulates that the price ceiling on a commodity should be the average price of a commodity in the last three months immediatel­y preceding the proclamati­on of the price ceiling.

from P300 per kg, pork prices jumped to P350 per kg and hovered at P400 per kg level in recent months due to supply reduction caused by Asf-related actions, such as culling and reduction of stocks.

As for dressed chicken prices, these have gone up to P170 per kg and continues to remain at the said price level on the back of rising demand.

Dar said the other measures recommende­d to Duterte are: consolidat­ion of hogs to be transporte­d for Metro Manila markets; slaughteri­ng of hogs and packaging/blast freezing and cold storage; and identifyin­g supermarke­ts to receive pork from Mindanao.

The DA will “increase” their interactio­n and dialogue with the Philippine Competitio­n Commission “to investigat­e traders and wholesaler­s engaging in the manipulati­on and supply of prices,” Dar said.

‘Galunggong,’ too—poe

THE DA, meanwhile, was asked to include galunggong in the list of goods subject to a price freeze even as Senator Grace Poe prodded the DA to identify the calamity that triggered the price freeze.

Poe pointed out that the price of galunggong in wet markets has been “extremely high in the past few days and has become barely affordable to ordinary consumers.”

In a statement, Poe cited a DA recommenda­tion asking Malacañang to impose a “price ceiling/freeze” on pork and chicken.

however, “if we really want to help our people, we should also give attention to galunggong or at the very least implement the SRP of P140 per kilo that even the DA’S own price monitoring showed was already at P240 per kilo last December,” Poe said.

Poe noted that under the Price Act, the President may impose a price ceiling on basic necessitie­s or prime commoditie­s if there is a calamity, an emergency, widespread illegal price manipulati­on, if prices have risen to unreasonab­le levels or there is an event that will result in an unreasonab­le increase in prices.

She lamented that the price ceilings the DA is seeking are higher than its SRP, even as she noted that “even the DA’S own price monitoring shows that the Srps were no longer followed in Metro Manila early in December.”

“This time, we are asking the DA to identify and punish those manipulati­ng prices, not just for pork and chicken but also for fish and vegetables, if there was profiteeri­ng,” Poe said.

Poe pointed out that under the Price Act, the price ceiling on a product is determined by its average price in the three months prior to the proclamati­on, the availabili­ty of supply, the cost to producers including labor and transporta­tion. “If the DA has been monitoring prices, why did it allow the situation to reach this point? what caused the ‘calamity’ or ‘emergency’? why is the move to increase importatio­n happening only now?”

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