Crackdown on rising prices DTI threatens to padlock stalls of erring wet market vendors
The Department of Trade and Industry (DTI) will be issuing notice of violation to erring wet market vendors and could even padlock stalls of those uncooperative in an expanded effort to crackdown on unwarranted increases in prices of basic goods and commodities as government scrambles to find ways to fight against soaring inflation.
Trade and Industry Secretary Ramon M. Lopez said he and Agriculture Secretary Manny Piñol agreed in a meeting with market vendors that DTI will also help in ensuring that vendors of agricultural products behave.
“If they will not reduce prices, we will start issuing letter of inquiry, then notice of violation, or we can even close a store and confiscate products, but that is the last resort. I really don’t want to do this because these are small vendors, but we have to exert influence, we just have to go through due process,” he said.
Lopez explained that this move will also make vendors pressure their “viajeros” (middle men) to reduce their prices so this will result in lower retail prices. Lopez noted that wet market vendors are also protective of their “viajeros” or middlemen that they don’t want to divulge their contacts.
But during their meeting on Wednesday, some market vendors gave out the contacts of their suppliers or middlemen resulting in a successful discussion. It was noted that these middlemen are engaged in an underground economy.
As inflation reached 6.7 percent in July, the highest in five years, DTI is trying to determine where the sources of price hikes are in the supply chain.
Lopez stressed that once farmgate prices have gone down, these should be reflected in retail prices at the wet markets. In fact, the total price reduction so far is 13.00.
According to Lopez, the price difference for chicken from the middleman to retail should only be 145 per kilo and 175 per kilo for pork.
Price of chicken ranged from 1140150 per kilo, but Lopez said this should have gone down to 1130 a kilo because farmgate is now 180 per kilo.
In addition, Lopez said they will also mobilize the local price coordinating councils of the local government units to talk to market masters to ensure price stability.
Should prices in the wet markets do not still go down, the DTI is planning to revive a government store in wet markets to drive down prices.
“We want to open a store but that is a last resort if we cannot resolve the high prices in the wet markets,” he said. This was once implemented by the government but failed because vendors strongly opposed this scheme.
Should all these efforts fail, Lopez threatened the imposition of price ceiling.
“Price ceiling would be the last resort,” he concluded.
Already, the agriculture department has allowed the importation of fish to ease supply problem.
Earlier, the DTI also bats for importation of some vegetables and fish as one way to fight inflation.
Already, the DA had issued a Certificate of Necessity allowing a maximum 17,000 MT of galunggong to be imported by accredited fish importers. The articles will only be unloaded in Bureau of Fisheries and Aquatic Resources (BFAR)accredited cold storage facilities and will be sold in Navotas Fishport for sale in wet markets.
DA also requested the Bureau of Customs to temporarily suspend of the imposition of Special Safeguard Measures on chicken meat imports. In the case of pork supply, it was reported that MAV certificate holders utilize 50 percent only of their allocations.
Piñol also directed MAV certificate holders to utilize their allocations, otherwise, these can be cancelled and rebidded to others.
Likewise, arrival and distribution of NFA rice imports will also be monitored.
Galunggong importation Meanwhile, Agriculture Secretary Emmanuel Piñol said there was nothing wrong with the forthcoming importation of 17,000 metric tons (MT) of galunggong, which will be sold directly to local markets — the first time it will happen since imported galunggong is normally meant for processing and canning purposes only.
The government recently allowed the importation of fresh, chilled, and frozen galunggong (round scad) to augment the local supply in the fresh markets as well as stabilize the prices.
And for the purpose of conserving the country's fish supply, Piñol told reporters on Thursday that importation will now be a common practice at the fisheries sector.
"It's part of fish conversation program. We really have to put up a system and importation is only one of them. We also have to develop our aquaculture and mariculture program," Piñol said.
The pending galunggong importation is set to take effect on September 1, just in time for the closed fishing season across different municipal waters. The closed season in the country's major fishing grounds normally take place from October to February.
Piñol said that during the same period next year, the country may import again as "part of a long-term program" the administration will implement and amid the declining fish supply.
This program, according to him, involves reshaping what would comprise the country's fish supply — which should be 40 percent captured fishes and 60 percent aquaculture and mariculture.
Piñol's statement came at a time when Buhay party-list Rep. Lito Atienza said the decision of DA to bring in some 11.4 billion worth of galunggong imports is only a “band aid solution.”
“The best way for the government to fight off rising fish or food prices for that matter is by producing more fish and more food,” he added.
But for the record, Piñol said that there is really no shortage of galunggong in the country. The problem is the fishermen couldn't catch them.
"We are coming up with a new design for fishing boats that will help fishermen increase their catch as well as reach areas where they catch more fish," Piñol said.
For its part, BFAR assures that the importation and unloading activities will adhere to a stringent set of guidelines and will be strictly monitored by the BFAR and Philippine Fisheries Development Authority (PFDA).
More importantly, the general consuming public is assured that the imported galunggong will be unloaded only in BFAR accredited cold storage facilities and will undergo thorough inspection to ensure that the fish commodity that will enter Philippine markets are safe and free of harmful substances. (With a report from Madelaine B. Miraflor)