The price ceiling on rice begins today despite the appeal of retailers to defer its implementation.
The government promises to offer financial subsidy and other forms of assistance to rice retailers who will incur losses.
And, a bill is filed in the House to encourage farmers to produce more rice stocks.
Ria Tanjuatco-Trillo speaks with Agri Party-list Rep. Wilbert Lee.
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The government promises to offer financial subsidy and other forms of assistance to rice retailers who will incur losses.
And, a bill is filed in the House to encourage farmers to produce more rice stocks.
Ria Tanjuatco-Trillo speaks with Agri Party-list Rep. Wilbert Lee.
Visit our website for more #NewsYouCanTrust: https://www.cnnphilippines.com/
Follow our social media pages:
• Facebook: https://www.facebook.com/CNNPhilippines
• Instagram: https://www.instagram.com/cnnphilippines/
• Twitter: https://twitter.com/cnnphilippines
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NewsTranscript
00:00 Welcome to The Source, where we combine the headlines with in-depth conversations with
00:06 the newsmakers themselves.
00:08 Sitting in for Pinky Webb, I'm Ria Tanwak Cotrillo.
00:11 Today on the program, the price ceiling on rice begins today despite the appeal of retailers
00:16 to defer its implementation.
00:19 The government promises to offer financial subsidy and other forms of assistance to rice
00:23 retailers who will incur losses.
00:26 And a bill is filed in the House to encourage farmers to produce more rice stalks.
00:32 AgriPartylist representative Wilbert Lee joins us live.
00:47 The price ceiling on rice begins today despite the appeal of retailers that it will lead
00:51 to losses in their businesses.
00:54 President Bongbong Marcos insists the move is necessary and that the price cap stays
00:58 until the supply stabilizes.
01:00 He also promised the government will offer financial aid and other forms of assistance
01:05 to affected retailers.
01:06 The House of Representatives is also coordinating with the Department of Budget and Management
01:10 to allocate two billion pesos for the retailers.
01:14 Rex Emilio has more.
01:18 President Marcos was bound for the ASEAN Summit in Indonesia, but he could not avoid tackling
01:23 a domestic concern - the price ceiling on rice.
01:27 The president's explanation on the rice situation comes amid calls from rice retailers to stop
01:33 the price cap.
01:34 While consumers stand to benefit from the policy, retailers say they will be at the
01:39 losing end.
01:40 The president blames rampant smuggling and hoarding that caused artificial shortage.
01:45 He says policymakers don't see any reason for the staple to cost more than 50 pesos
01:51 per kilogram.
01:53 President Marcos says while the market should dictate prices, the government should not
01:58 force us to put in price control so that people can have a hard time.
02:09 The president says the price ceiling stays until supply stabilizes, with the onset of
02:14 harvest.
02:16 He adds government is determined in its campaign against smugglers and hoarders.
02:21 The chief executive says he understands some retailers stand to lose for buying from suppliers
02:27 at higher prices and selling cheap.
02:30 That's why the trade and agriculture departments are coming up with a list of retailers who
02:35 will receive financial aid.
02:37 The social welfare and development department will also pitch in the help.
02:42 Retailers met with the president in Malacanang ahead of his Jakarta trip to voice out their
02:47 concerns and appeal.
02:48 They're asking for help to access cheaper rice, as well as assistance to cut transport
02:54 costs.
02:55 Retailers in wet markets are requesting a moratorium on fees and rental to offset possible
03:01 losses, as well as toll and fuel discounts.
03:04 "Your government is there to provide assistance for all of you to recover from the loss caused
03:14 by the price cap."
03:16 Without mentioning a timetable, social welfare chief Rex Gatchalian says the agency will
03:21 come up with a list of beneficiaries soon.
03:25 Rex Renicio, CNN Philippines, Jakarta, Indonesia.
03:31 Amid the president's directive to set price ceilings on rice nationwide, AgriPartyList
03:36 representative Wilbert Lee renewed his call to implement long-lasting government interventions
03:42 to alleviate rising rice prices.
03:44 Now let's go straight to the source of the story, AgriPartyList representative Wilbert
03:48 Lee.
03:49 Congressman, welcome to the program.
03:50 Good morning, Rhea.
03:51 To our viewers, good morning.
03:53 Thank you for this opportunity to share with you some of the highlights of one of the bills
03:59 that we filed regarding the HATAS issue now.
04:04 This price ceiling, it's taking effect today.
04:06 This is from Executive Order 39 and it means that the price cap for regular milled rice
04:11 needs to be at 41 pesos and for the well-milled rice, it's 45.
04:17 For you, Congressman, is this price ceiling at least a step in the right direction?
04:22 Well, as I've said in some of the other interviews, this is just a temporary stopgap measure by
04:28 the president.
04:29 I'm glad that he did this, but again, this is a short-term solution.
04:35 So we have to look at the long-term solution.
04:40 Given that this is a short-term solution, do you think there should at least be a timeline
04:47 for this and what would the timeline depend on?
04:50 Well, the president had said that until the prices of rice stabilizes, then the price
04:57 cap will remain.
04:58 The only thing is the government has to closely monitor this because there's a danger that
05:04 the rice will be lost in our market because why would I sell it at a loss if I'm in loss?
05:11 So I'll just close my store.
05:13 So the government really has to monitor it.
05:17 I'm glad that the president also has made the announcement that there's a two billion
05:23 peso for the losers that he's preparing.
05:28 I think it's hard for the president to do this because it's a balancing act on his part.
05:35 Right, it would be very difficult to please everybody on this.
05:39 But Congressman, let me ask you, why does it have to even come to a point that the price
05:46 cap has to be imposed?
05:47 I know we probably don't have the time to answer this question, but what is the ultimate
05:50 reason why the price of rice is not going down?
05:54 We have a law, the Anti-Agricultural Smuggling Law, which my party list during the last Congress
06:00 was the principal author.
06:02 I think we have to really, really implement it, the Anti-Agricultural Law.
06:09 This Congress, I filed an amendment to this law that includes hoarders because this is
06:15 the reason, the reason now, that hoarders and price manipulators, that's the main reason
06:21 why our prices are going up.
06:24 Of course, it also increased, there was also a change in prices in the international market,
06:30 but the main reason really is the hoarders that are happening.
06:34 So that's why in this Congress, I filed an amendment to the Anti-Agricultural Smuggling
06:39 Law that includes hoarders and price manipulators, which unfortunately, was not included in the
06:45 last Congress.
06:46 Okay, but you are working towards that.
06:49 Yes, and the government's accomplices.
06:51 That's the most important part, the accomplices in the government.
06:54 I want to touch on supply for a moment.
06:57 Do we have enough supply?
06:59 How much supply do we need?
07:00 How much do we import?
07:01 Every year, the production for rice is about 20 million metric tons.
07:07 For this year, we're projecting 19.5 to 20 million metric tons.
07:11 If we produce this rice, it will be about 13 million metric tons.
07:17 The total consumption for a year of the whole country is about 16 million.
07:21 That's why we are importing about 3 million metric tons every year, plus the buffer stock
07:26 that we need.
07:28 We're not talking about not being included in that if there's a storm and calamity.
07:32 So that's our total production.
07:37 Sad to say, our production per hectare is way below the other Asian countries.
07:45 Why is that?
07:46 The average production per hectare of our rice is about 4.6 metric tons, while in Thailand
07:54 and Vietnam, it's about 8,000 to 10,000 metric tons.
07:58 So double.
07:59 So double, more than double, actually.
08:02 So the main reason, actually, is that we don't earn anything.
08:08 That's the main reason.
08:09 I mean, who would want to go into farming if they don't earn anything?
08:14 At the end of the day, you're tired because you don't earn anything.
08:18 So that's the reason.
08:19 Very difficult.
08:20 Okay, now the government has given warnings for people who don't follow the price cap,
08:26 which as we said, is starting today.
08:28 There will be sanctions and fines imposed.
08:32 Should the government give retailers a chance to at least adjust or give them the opportunity
08:36 to sell off their stocks which they bought at a higher price?
08:40 There's a group that said at least give the retailers, but yesterday, last night, before
08:45 the president left for Indonesia, he made an announcement that there will be a two billion
08:49 peso assistance for the people who will be affected.
08:53 Is that enough?
08:54 Well, I think for now that would be enough because not many people, because they say
09:01 that's why this is happening, because there's a shortage of rice in the market.
09:05 So I think that would be enough for now.
09:08 So that's my take on that.
09:12 Right.
09:13 So he's ordered sort of like all hands on deck here, the trade department and the DSWD
09:17 to facilitate this assistance to retailers.
09:21 How soon should this be addressed?
09:23 Well, the House of Representatives, through our speaker Martin Romualdez, has already
09:30 coordinated with the DBM.
09:32 I think it should be very soon.
09:34 Because it can't be delayed.
09:38 Because as you said, the retailers are losing money.
09:41 It can't be ignored.
09:43 So we have to balance everything.
09:47 Because do you foresee that if this is not done right away, you have retailers who could
09:52 possibly, because they have said they might as well just close shop, and then that's going
09:56 to reduce supply in the market.
09:57 Yes, correct.
09:58 So is that something that could happen?
10:00 Yes, it could happen.
10:02 Because as I've said, this price cap ceiling, that's what will be the effect.
10:07 Maybe they'll just close or not sell.
10:11 Because why would you sell if you're going to lose money?
10:14 But remember, you can't hide the rice for too long.
10:18 So, I mean, you know.
10:21 What is your biggest concern with the price cap that takes effect today?
10:25 Well, my biggest concern is really, maybe the supply in the market will be lost.
10:32 Because of that.
10:34 Okay, we still have a lot to talk about, Congressman, but we will be taking a short break for now.
10:39 This is The Source on CNN Philippines.
10:41 Please stay tuned.
10:42 You're watching The Source on CNN Philippines.
10:52 I'm Maria Tanwad Cotrillo.
10:53 Our source today, Agri Party List Representative Wilbert Lee.
10:57 All right, let's get straight back into it, Congressman.
11:01 We were talking earlier about agri-smugglers and hoarders.
11:05 President Marcos said in his second sauna that their days are numbered.
11:10 How aggressive does the government need to be in going after these smugglers and hoarders?
11:14 Well, actually, to put it bluntly, Ria, we should be able to sample them.
11:19 We have been filing cases and nothing has been happening.
11:23 So, we should be able to sample them.
11:25 We really have to go after them, sample them.
11:29 And the amendment to the bill that I filed is about the government's accomplices.
11:37 That's why nothing happens to the cases that are filed.
11:40 It's because of the accomplices that are in the government.
11:44 So, the evidence is weak, the ones that are obtained are weak, or the evidence is lost
11:51 because these are the accomplices in the government.
11:53 That's what's happening now.
11:55 It's a systematic problem.
11:57 Now, for your proposal in amending the law that you originally authored, is there a timeline for that?
12:03 Well, I'm pushing for it to be passed in the House of Representatives this year.
12:09 And hopefully, it will go into the Senate next year.
12:12 I hope that before the end of the President's term, this amendment will be passed.
12:18 Okay, so it will take a while, in truth.
12:20 It will take a couple of years, you think?
12:22 No, sorry, not until the end of 2024.
12:27 By this Congress?
12:29 Yes, by this Congress.
12:30 Because I was thinking about the election 2025.
12:33 I remember that the presidential election is in 2028.
12:37 Right. Now, you've been in the agriculture sector for decades.
12:42 What are the long-term solutions here?
12:45 Because it feels like in the Philippines, we're just always playing catch-up, chasing our tail, going for the short-term solutions.
12:52 What do we need to do to be self-sufficient in rice?
12:55 One sentence, actually.
12:57 We have to make it profitable for our farmers.
13:00 That's the main one sentence.
13:03 So that's why I filed a bill. It's called House Bill 9020.
13:08 We call it the Cheaper Rice Act.
13:13 In the bill, what I want to happen is a price subsidy.
13:20 We have to buy rice, make it simple, buy rice from the farmers directly,
13:28 so that the farmers can earn and sell it to the consumers.
13:33 We have to make it profitable for them.
13:36 Once they're profitable, once the farmers earn, who will sell the land?
13:42 That's our problem.
13:44 Just like the fear of some people that this new Agrarian Emancipation Act that the president has signed,
13:51 by the way, we are also the principal author for this,
13:55 the fear of others is that if you give it, they will sell it.
13:59 After the 10-year prohibition period, they will sell it.
14:03 I mean, if it's profitable, who else will sell the land?
14:08 Is it possible to make it profitable within those 10 years?
14:12 Yes, exactly.
14:14 And then the youth, we can encourage them to go into farming also because it's profitable.
14:21 And then our farmers, they will work harder to increase the production.
14:26 And there will come a time because of this, we will not import.
14:32 We will be the one to export to other countries because they will earn,
14:39 they will do everything that the production will be at par,
14:44 just like in Ibombasa, which is 8,000 kilos per hectare.
14:48 That's double already.
14:50 So why is it double?
14:52 They have better technology, they have...
14:56 What is it?
14:58 They have, well, I hate to say this, but there are lots of our farmers because they don't have any income,
15:09 so they don't really work.
15:12 And then because they don't have any income, instead of buying fertilizer to make the production,
15:20 you know, more production, they use the money for some other purpose, some other reason.
15:26 So instead of putting five bags of fertilizer, they will put one bag, two bags,
15:34 because they need money, because they don't have any income.
15:38 So that is what is happening.
15:40 It's a cycle.
15:42 So that is what is happening.
15:44 They don't have cheap capital, they will borrow, they borrow with high interest,
15:49 they have to pay, and then they don't have any income, if they are in debt, they have to borrow again.
15:56 So they will use, instead of using the money for agriculture, they use it for some other purpose.
16:03 Right.
16:04 Yeah, it is, like you said, it's a vicious cycle.
16:07 It's a vicious cycle.
16:08 Okay, I want to talk about the rice tariffication law.
16:11 Is this something that we need to review?
16:13 Because a lot of groups are blaming the rice tarification law for the current rice price situation.
16:18 It's part of our commitment to WTO.
16:22 The rice liberalization has been delayed for 20 years already.
16:29 When we joined WTO in 1991, it's part of our commitment.
16:33 With this bill that I filed, making farmers profitable,
16:37 what will happen is we have to make sure that the farmers,
16:42 the ones we buy from, have an income of at least, for example, at least P10 per kilo.
16:51 So the government buys from the farmer at a higher price, and then we let them import.
17:00 So if the price of the import is low in the market,
17:04 the government can sell the rice that the farmers bought,
17:09 at a lower cost also, if it's profitable in the market.
17:12 Okay.
17:13 So the government should be the one, how do you call it,
17:18 the one who regulates, or no, there's a word, the one who equalizes.
17:33 So if the price from imports is high, then the government can still sell the rice
17:42 Right.
17:43 From the local farmers.
17:45 From the local, at a lower price.
17:47 So prioritizing the Filipino farmer.
17:49 The Filipino farmers.
17:50 Okay. With that, we need to take a break.
17:52 Congressman, we will be taking a short one.
17:54 This is The Source on CNN Philippines. Please stay tuned.
17:56 We have breaking news on CNN Philippines.
18:12 The country's inflation rate rises to 5.3% in August 2023,
18:17 from 4.7% in July 2023.
18:20 The Filipino Statistics Authority says this is the first increase in inflation
18:26 after six straight declines.
18:28 National statistician Dennis Mapa says the main drivers of the acceleration
18:32 were the food and non-alcoholic beverages and transportation.
18:37 Again, breaking news, inflation accelerates in August at 5.3%,
18:42 breaking its six-month downward trend.
18:45 Stay tuned to CNN Philippines for more details on this breaking story.
18:51 But for now, let's go back to our source today,
18:53 AgriPartyList representative Wilbert Lee.
18:56 Okay, Congressman, we have a few minutes left here on the program.
19:00 This peso of 20 pesos per kilo of rice,
19:05 you've said before that it's still doable. Is it?
19:09 Yes, it's doable, provided that the government is willing to really invest on our farmers.
19:16 We have to give all the subsidies, we have to support them.
19:20 We have to give. During this budget season,
19:24 I'm looking into the lowering of the funds,
19:28 especially the post-harvest facilities.
19:31 We have money that we will not lower.
19:35 So we're making sure that all of these post-harvest facilities and equipments
19:40 will reach the farmers.
19:42 We made a strong commitment to the agencies that by the end of the year,
19:48 they will lower the funds.
19:50 So that's what we should do.
19:52 The 20 pesos is doable, provided the government is willing to invest on our local farmers.
19:58 We have to make our local farmers as our food security soldiers.
20:03 When you say food security, to me, it's an issue of national concern.
20:08 If it's national concern, food security, it's also a national security issue.
20:14 When you say it's a national security issue, automatic to me, it's an expense item.
20:20 Meaning to say the government has to really allot money every year for this.
20:27 Does the DA have enough money? Are you asking for enough money?
20:30 I mean, you're not with the DA, of course, you're with Congress.
20:32 But is the DA asking for enough money for all of this?
20:35 Yeah. It has increased tremendously from the last administration.
20:42 It's good that the president, as long as the president is prioritizing agriculture,
20:47 it's okay if the government adds funds.
20:51 But as I have said, our local farmers, we have to really make them as our food security soldiers.
20:58 So that in the long run, when the day comes, we don't have to rely on importation.
21:04 What happens if, for example, there are some countries that don't want to export,
21:10 we will be dependent on them.
21:12 So we have to really strengthen our local farmers.
21:15 Yeah, and we see OFWs as economic heroes.
21:18 We should see farmers as heroes as well.
21:21 Yes, because ever since, they have been the ones who are really struggling to feed us.
21:27 Right. So for you, in sum, Congressman, what is the biggest challenge in achieving this 20 pesos per kilo rice?
21:33 The biggest challenge really is, it's good, as I've said, that the president is prioritizing agriculture.
21:39 The biggest challenge really is to make it profitable for farmers.
21:43 Yeah, that's the key.
21:44 To make it profitable for them. And the government has to be the enabler for that.
21:48 For it to happen, the government has to be the enabler.
21:52 Okay, and the top enabler for that would be the president, because he's been the chief of the agriculture department for over a year now.
22:00 Congressman, are you still satisfied with President Marcos as agriculture chief,
22:04 or do you think it's time for him to delegate this post to someone else,
22:08 someone who can really dedicate 101% of their time to it?
22:13 There are pros and cons, but for me, as long as he is prioritizing agriculture as the program,
22:20 as the main priority of his government, it is okay for me that the president will be the agriculture secretary,
22:28 because the buck stops on him. So it's better for me that he's the one in charge.
22:34 Okay, because whoever would sit there in his place would have to go through him anyway.
22:38 Yes, correct.
22:39 So you're just sort of skipping a step by going straight to him.
22:42 Correct. And the main responsibility of the government is really to look into food sufficiency and food security of the country.
22:50 The government should first take care of the food of the farmers.
22:55 So who is better to sit there than our president?
22:59 So you're satisfied with the performance of the president?
23:01 Yes, yes. And we have seen in his pronouncement in the last sauna also that agriculture continues to be his main priority.
23:11 All right, sir. Thank you so much for being here on the show this morning and sharing your morning with us.
23:17 Thank you so much, Rhea. I just want to say that the Anti-Agricultural Smuggling Act is part of the LEDAC bill.
23:24 So we're looking at passing it by the end of the year.
23:27 Okay, that is definitely good news, sir. Thank you very much.
23:30 That was Agri Party List Representative Wilbert Lee.
23:34 And thank you for joining us here on The Source, sitting in for Pinky Web.
23:37 I'm Rhea Tanwadco Trillo. You're watching CNN Philippines.
23:41 [Music]
23:47 you