President Marcos Jr.’s Price Cap on Rice: Caught Off Guard or Miscommunication?

In a recent press briefing, Finance Secretary Benjamin Diokno was questioned about President Ferdinand Marcos Jr.’s executive order that set a price cap on rice. Diokno admitted that the President’s economic team was surprised by the decision. Although Diokno eventually expressed support for the price cap, the damage had already been done. The media exchange went viral, attracting criticism towards the President for making a major policy decision without consulting his economic team.

However, it’s important to consider the context. Diokno revealed that he and Economic Planning Secretary Arsenio Balisacan were in Japan for a finance meeting when they learned about the policy pronouncement. They were absent when the decision was made, making it impossible for the President to consult them. Furthermore, their underlings failed to inform them of the impending policy shift early enough for them to intervene.

This situation raises concerns about Diokno’s economic team and their travel activities. As of now, Diokno, Sec. Amenah Pangandaman, and Sec. Balisacan are currently in Qatar for an investor briefing in the Middle East. While their travel plans may have legitimate reasons, Diokno’s slip of the tongue is not helping the President. During times of crisis, it is crucial for Cabinet members to show unity. However, Diokno’s remarks projected disarray within the administration, especially amidst rising inflation and discontent.

Even allies in Congress are unhappy with Diokno’s words. Some believe that he is too eager to please his economist friends and former colleagues at the UP School of Economics. If he continues to deviate from the official line, he may find himself back teaching economics at UP. But that, my friends, is a different story.

LGUs Support Rice Farmers with Direct Purchases at Fair Prices

During rice harvest season, the focus shifts to the buying prices of palay in rice-producing provinces. After the implementation of the controversial executive order on rice price control, the farmgate price of “wet” palay dropped to P16-17 per kilo, while “dry” palay decreased to P20 per kilo from P23. This price cap decision burdens the farmers, according to Raul Montemayor, the national manager of the Federation of Free Farmers.

Thankfully, positive developments are taking place in rice-rich provinces like Nueva Ecija and Isabela. These local government units (LGUs) are taking the lead by directly purchasing the rice harvest of their farmers from October to November. With the support of Land Bank in Talavera-Nueva Ecija, the town and city mayors in the province are given credit lines to buy rice directly from farmers. This practice proved successful in September 2019 when Land Bank and Development Bank of the Philippines opened credit lines for major rice-producing provinces, effectively increasing palay prices and stabilizing the supply.

Under this arrangement, the purchased palay will be handed over to the National Food Authority (NFA) to augment its stocks. Simultaneously, the LGUs can settle their credit and purchase their farmers’ harvest at a higher price. Without proper regulations, unscrupulous traders will only push farmers deeper into debt, resulting in lower buying prices and a vicious cycle of greed and price manipulation.

The new set-up allows LGUs to truly help their farmers instead of benefiting middlemen or dummy cooperatives controlled by dishonest traders. Former Congressman Rene Diaz, now chairman and president of the think tank group Center for Strategic Studies, warns that unauthorized rice importers and traders will always attempt to create a shortage and raise prices, especially since the NFA has limited stocks. If LGUs are permitted to buy local rice harvests on behalf of the NFA, it will boost rice stocks and ultimately lower prices. This approach sets an example for other LGUs with rice-farming communities.

Currently, 3.7 million tons of imported rice and the summer crop are owned by private sectors. Recently, warehouses in Balagtas, Bulacan were discovered holding such stocks. Diaz suggests that President Marcos Jr. should continue inspecting all warehouses across the country and compare the importation records of the Bureau of Customs against the Department of Agriculture’s issued authority to import. Unauthorized stocks should be subject to seizure procedures, considering rice’s perishable nature. This, in my opinion, is the correct approach to address the rice crisis.

Hosting FIBA 2023: A Feat Worth Celebrating

Out of 32 nations, Germany was declared the champion in the recent FIBA tournament. Although the Philippines ranked 24th, we managed to defeat China and secure a spot in the next Olympics. Our basketball-crazy nation surpassed the previous FIBA World Cup attendance record of 32,616, set during the gold medal game between the USA and Russia in Toronto, Canada, on August 14, 1994.

On the opening day of the tournament, August 25, which was declared a nonworking holiday in Metro Manila, a whopping 38,115 people attended the game between Gilas and the Dominican Republic at the Philippine Arena. This stands as the highest attendance record in FIBA World Cup history.

Throughout the ten-day tournament, the Philippines hosted 16 teams in the grueling games and Final Phase at MOA and Araneta Coliseum. FIBA also held its 2023 Manila Congress and Hall of Fame Ceremony, gathering around 200 delegates from National Federations. The local organizers provided state-of-the-art sports facilities, top-notch hotel accommodations and transport, efficient bus services, round-the-clock security, comfortable VIP lounges, excellent handling of the FIBA Congress, world-class broadcast coverage, and an unforgettable game experience.

FIBA World Cup executive director David Crocker praised the Philippines’ hosting, stating that the local organizers delivered on every front. The players and fans had an amazing experience, with fantastic and exciting games. Moreover, there were no reported minor crimes involving delegates, basketball stars, or fans.

Among the highlights for Filipino basketball enthusiasts was the transformation of the famous SM Mall of Asia globe into a giant LED basketball with a hoop, broadcasted worldwide to millions of FIBA basketball fans. This monumental project, measuring 1.5 meters in diameter and constructed in just 19 days, was executed by the SMART group and the talented individuals from the Uprising Media Marketing Group. It stands as a magnificent LED work of art that makes us all proud.

Once again, congratulations to all those involved in making FIBA 2023 a resounding success!

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