Manufacturers vow 3-month price freeze

Government sets food imports, social safety nets

MANILA, Philippines — Consumers can expect some reprieve from surging prices as manufacturers have agreed to hold off price hikes in the next three months, a trade official said yesterday.

The administration is also preparing a budget of P83.85 billion for the implementation in 2019 of social welfare programs under the Tax Reform for Acceleration and Inclusion (TRAIN) law.

“We have successfully sought the cooperation of BNPC (basic necessities and prime commodities) manufacturers who committed not to increase prices for the next three months beginning Sept. 1,” Trade Undersecretary Ruth Castelo said in a text message.

Basic necessities cover canned sardines, milk, coffee, bread, instant noodles, salt, detergent soap, bottled water and candles, while counted as prime commodities are luncheon meat, meat loaf, corned beef, beef loaf, condiments like vinegar, patis and soy sauce, as well as toilet soap and batteries.

Finance Secretary Carlos Dominguez III, Budget Secretary Benjamin Diokno, and Social Welfare acting chief Virginia Orogo, meanwhile, signed Joint Memorandum Circular 1-2018 dated Aug. 31 prescribing the guidelines for the implementation of the social welfare programs under TRAIN.

The total proposed budget for the program is 21.36 percent higher than this year’s P69.09 billion.

Apart from convincing manufacturers of basic goods not to raise prices in the next three months, the Department of Trade and Industry (DTI) is also undertaking other measures to help stabilize prices and supply of commodities.

The country’s headline inflation hit a nine-year high of 6.4 percent year-on-year in August. The August figure brought the year-to-date headline inflation to 4.8 percent.

Castelo said the DTI is currently coordinating with poultry raisers and other agricultural producers for the possible setting up of an outlet where chicken and vegetables could be bought directly from the farmers.

She said the move is being undertaken “so we can remove the layers in between and sell these products at much lower prices.”

The measure is also being implemented to assist the Department of Agriculture (DA) reduce the gap between farm gate and retail prices.

Earlier, Trade Secretary Ramon Lopez said those who would not bring down their prices to reflect the lower farm gate prices of chicken would be issued a letter of inquiry and notice of violation.

He also said retailers who insist on selling at high prices would be ordered closed.

As a last resort, the government might consider imposing a price ceiling. The DA would be providing cold storage facilities for the direct selling to end customers.

Social welfare

Among the projects covered by the joint circular are the unconditional cash transfer (UCT) program, Pantawid Pasada, rice subsidy, Universal Access to Quality Tertiary Education and the Scholarships and Students Assistance Program.

Under the UCT, the government will provide cash grants amounting to P200 per month in 2018 and P300 per month for 2019 and 2020 to the poorest 10 million households in the country.

The UCT will be given to the beneficiaries in one annual lump sum through the Land Bank of the Philippines. For 2018, the distribution will be completed this month. For 2019 and 2020, the release period will be within the first half of the year. The DBM has proposed a total allocation of P37.57 billion for the program.

The circular also provided that beneficiaries of the Pantawid Pasada program should only be qualified franchise holders of public utility jeepneys, as identified and validated by the Land Transportation Franchising and Regulatory Board.

Each franchise holder will be eligible for fuel vouchers amounting to P5,000 for 2018 and at most P20,000 for 2019, depending on fuel prices. The 2019 proposed budget for the program is P3.86 billion.

Under the circular, the NFA is required to prioritize the selling of its discounted rice to 2.6 million UCT beneficiaries and senior pensioners.

“NFA shall intensify its rice distribution efforts to the designated retailers inside markets and outside markets, Bigasang Bayan Outlets, Barangay Bagsakan, Bigasan sa Parokya and Institutionalized Bigas sa Palengke and NFA rolling stores nationwide, giving priority to depressed areas where there are significant number of UCT beneficiaries based on the DSWD database,” the circular read. The DBM has allocated P28.51 billion for the provision of subsidized rice.

The agency also provided P11.2 billion to the Technical Education and Skills Development Authority for a scholarship program for minimum wage earners, unemployed persons and UCT beneficiaries.

Another P2.71 billion was given to the LandBank, Development Bank of the Philippines and the Department of Transportation for the implementation of the PUV modernization program and the provision of subsidies to franchise holders to help them purchase modern jeepneys.

‘Give them a chance’

Speaker Gloria Macapagal-Arroyo, for her part, is urging the public to give the country’s economic managers a chance to address the inflation problem.

“I’m sure the government is doing, is taking steps to address the situation… Remember, there were suggestions that came from Congress, I would like to reiterate those,” she told reporters.

She recalled that when she was president, she was able to rein in inflation by allowing massive importation of rice.

“I remember in my time in March of 2009, the inflation was 6.6 percent but by June it was down to 1.5 percent. A lot of measures were taken. It was a combination, but the single biggest factor was the massive importation of rice together with buying massively from the local farmers,” she said.

“So something can be done. Let’s give our economic manager a chance to address the situation,” she added.

Last July 31, Arroyo met with President Duterte’s economic managers to express her concern over rising inflation, which hit 5.7 percent at the time.

She and other House leaders proposed reducing food tariffs to zero to allow importers to bring in the needed supply to meet increasing demand.

They also suggested that “regulated price adjustments” for water, electricity and fuel be postponed.

They also recommended more rice importation.

The President and his economic team largely ignored the House leaders’ proposals.

On Wednesday, the country’s economic managers issued a statement announcing the implementation of reforms aimed at addressing food inflation.

“The highest contributors to inflation in August are electricity, gas and fuels, fish, rice, personal transport, vegetables and meat. Reforms in agriculture will continuously be implemented to address the supply issues causing the rise in food prices,” the economic managers said in a joint statement.

They said their position is supported by the lowest regional inflation rate recorded in food-abundant and agriculturally productive Region III at 3.6 percent.

“A committed effort from government in the agriculture sector to boost supply of key products and introduce policy reforms will bring down prices for all Filipino families,” the economic team said.

Smuggled onions

Meanwhile, the Bureau of Customs (BOC) yesterday seized P12 million worth of alleged smuggled onions imported from China. The seized onion shipment arrived at the Manila International Container Port (MICP) last month.

In a statement, BOC Commissioner Isidro Lapeña said the onions were placed inside six 40-foot container vans and misdeclared as apples.

During inspection, each container was found loaded with two layers of cartons of apples at the front but filled with bags of onions inside.

BOC X-Ray Inspection Project (XIP) head Czae Carrie de Guzman said the shipment was consigned to ASD Total Packages Enterprises Inc.

The owner of ASD Total Packages Enterprises and the customs broker, Michael Miranda Sumile, who processed the shipment are facing criminal raps.

“I have already ordered the revocation of the accreditation of the consignee and the customs broker involved. Again, I am warning all unscrupulous traders, stop your smuggling attempts. I will definitely catch up with you,” Lapeña said. – Jess Diaz, Mary Grace Padin, Evelyn Macairan, Catherine Talavera