Govt may extend price caps in selected locations
JESSICA ANNE HERMOSA, BUSINESSWORLD
11/12/2009 | 01:36 AM
The government is considering an extension of price controls on basic and prime commodities past a soon-to-expire 60-day period in selected areas, officials said on Wednesday.
These may include Regions I and IV, the Cordillera Administrative Region, and parts of Metro Manila, they said.
"The question now is whether to extend the price control," Vice-President Manuel "Noli" L. de Castro told reporters at the sidelines of a National Price Coordinating Council meeting, roughly two weeks before the ceilings are set to expire.
"It is possible [the government] will extend it in affected areas," Mr. De Castro, the council co-chair, said.
The price cap on both basic and prime commodities — a list which includes fresh and processed food, soap, and construction materials, among others — was imposed last September 26 when the government declared a state of calamity in the aftermath of tropical storm Ondoy (international name: Ketsana).
Under the price control law (Republic Act 7581), price ceilings on basic necessities will remain in effect for 60 days while those on prime commodities will be lifted whenever the government decides so.
The cap is separate from an indefinite freeze involving fuel prices in Luzon, which was mandated by Executive Order 839 and also being reconsidered — this time for possible lifting — by authorities.
Trade Secretary Peter B. Favila, who also chairs the price council, said in general terms that the government would be assessing which areas should be covered by "special programs" that will yield a "balanced outcome" between consumers and industry.
The National Disaster Coordinating Council, Mr. Favila said, has identified Regions I and IV, the Cordillera Administrative Region, and parts of the National Capital Region as those "deep in trouble".
NDCC spokesman Lt. Col. Ernesto C. Torres, Jr. was unable to identify which areas in the capital were being referred to, saying only in a text message that these include places with victims that need to be relocated.
Mr. Favila said he would this week submit a recommendation regarding the price control order to the President based on information gathered from the council meeting.
Sought for comment, supermarket, and meat processing industry groups said they would comply if an extension was ordered.
A pork industry official, however, urged that the price ceilings be lifted especially as production costs are expected to rise.
"As long as manufacturers can provide us with goods that will allow us to sell at the price ceiling, that (the extension) should not be a problem," Philippine Association of Supermarkets, Inc. President Carlos V. Cabochan said in a telephone interview.
Producers of canned goods and cured ham will likewise support a price control extension that is intended to help calamity victims, said Francisco J. Buencamino, executive director of the Philippine Association of Meat Processors, Inc.
Hog farmers, however, recommended that the price cap be lifted to avert a shortage.
Pork supply is low in Luzon due to a wave of diseases and storms, Albert R.T. Lim, Jr., president of the National Federation of Hog Farmers, Inc. told reporters. He said controls should removed to encourage traders to bring in hogs from Mindanao despite additional freight costs. - BusinessWorld
These may include Regions I and IV, the Cordillera Administrative Region, and parts of Metro Manila, they said.
"The question now is whether to extend the price control," Vice-President Manuel "Noli" L. de Castro told reporters at the sidelines of a National Price Coordinating Council meeting, roughly two weeks before the ceilings are set to expire.
"It is possible [the government] will extend it in affected areas," Mr. De Castro, the council co-chair, said.
The price cap on both basic and prime commodities — a list which includes fresh and processed food, soap, and construction materials, among others — was imposed last September 26 when the government declared a state of calamity in the aftermath of tropical storm Ondoy (international name: Ketsana).
Under the price control law (Republic Act 7581), price ceilings on basic necessities will remain in effect for 60 days while those on prime commodities will be lifted whenever the government decides so.
The cap is separate from an indefinite freeze involving fuel prices in Luzon, which was mandated by Executive Order 839 and also being reconsidered — this time for possible lifting — by authorities.
Trade Secretary Peter B. Favila, who also chairs the price council, said in general terms that the government would be assessing which areas should be covered by "special programs" that will yield a "balanced outcome" between consumers and industry.
The National Disaster Coordinating Council, Mr. Favila said, has identified Regions I and IV, the Cordillera Administrative Region, and parts of the National Capital Region as those "deep in trouble".
NDCC spokesman Lt. Col. Ernesto C. Torres, Jr. was unable to identify which areas in the capital were being referred to, saying only in a text message that these include places with victims that need to be relocated.
Mr. Favila said he would this week submit a recommendation regarding the price control order to the President based on information gathered from the council meeting.
Sought for comment, supermarket, and meat processing industry groups said they would comply if an extension was ordered.
A pork industry official, however, urged that the price ceilings be lifted especially as production costs are expected to rise.
"As long as manufacturers can provide us with goods that will allow us to sell at the price ceiling, that (the extension) should not be a problem," Philippine Association of Supermarkets, Inc. President Carlos V. Cabochan said in a telephone interview.
Producers of canned goods and cured ham will likewise support a price control extension that is intended to help calamity victims, said Francisco J. Buencamino, executive director of the Philippine Association of Meat Processors, Inc.
Hog farmers, however, recommended that the price cap be lifted to avert a shortage.
Pork supply is low in Luzon due to a wave of diseases and storms, Albert R.T. Lim, Jr., president of the National Federation of Hog Farmers, Inc. told reporters. He said controls should removed to encourage traders to bring in hogs from Mindanao despite additional freight costs. - BusinessWorld
