DTI imposes price ceiling on basic goods

Published by rudy Date posted on September 29, 2009

MANILA, Philippines – The Department of Trade and Industry (DTI) set yesterday price ceilings on basic commodities to prevent unscrupulous traders from raising prices in the wake of the devastation caused by tropical storm “Ondoy.”

“The prices of goods today must be the same as last week’s. This is effective in all the areas under a state of calamity, including Metro Manila,” said Trade Secretary Peter Favila.

The commodities covered by the price ceiling include canned sardines, processed milk, coffee, instant noodles, detergent soap, rice, meat, poultry, sugar, and cooking oil. The order covers both wet markets and supermarkets.

Price ceiling means that sellers are not allowed to increase prices for 60 days after the state of calamity was raised last Sunday in Metro Manila, Mountain Province, Ifugao, Benguet, Pangasinan, La Union, Ilocos Sur, Isabela, Quirino, Nueva Vizcaya, Aurora, Nueva Ecija, Zambales, Pampanga, Bulacan, Tarlac, Bataan, Cavite, Laguna, Batangas, Rizal, Quezon, Mindoro Oriental, Mindoro Occidental, Marinduque, Catanduanes, Camarines Norte and Camarines Sur.

Violators of the price ceiling face imprisonment of 10 years and a fine of P1 million. The DTI will publish in newspapers today the standard retail prices of basic commodities.

Favila announced that there will be no price increase on basic goods during an emergency meeting yesterday of the National Price Coordinating Council (NPCC), which was also attended by Agriculture Secretary Arthur Yap and officials of the Philippine Amalgamated Supermarket Association Inc. (PASAI).

PASAI president Stephen Cua reported that there were cases of panic buying in some supermarkets.

“We urge the public to buy only what they need in order to avoid supply shortages,” Cua said.

He said there is already a shortage of women’s underwear and slippers because these are items that most consumers were buying.

Favila said the price ceiling, however, does not include liquefied petroleum gas (LPG) and construction materials. Construction materials are classified as prime commodities while LPG prices are deregulated. He said he is certain that the price of construction materials will not go up.

The DTI chief said he would send a request to President Arroyo to include prime commodities in the price ceiling. Favila said they are looking at ways to include the prices of prime commodities and LPG in the list of goods that are automatically controlled in times of emergency.

He assured the public there is adequate supply of basic goods.

During the NPCC meeting, Yap announced that he would be releasing P100 million in calamity fund to help the victims of Ondoy.

He said relief operations would be concentrated in Cainta, Pasig, Marikina, Malabon and Navotas. The money, he said, will be used to buy basic goods and products for the victims.

Yap likewise urged the public to help the victims and bring their donations to the Department of Social Welfare and Development site at Chapel Road, Ninoy Aquino International Airport, DSWD Central Office and the National Food Authority in Taguig and at Visayas Avenue.

He said that P500-million worth of agricultural crops were damaged in Central Luzon.

Palace warns erring traders

Deputy presidential spokesperson Gary Olivar also issued a warning against unscrupulous entrepreneurs who intend to take advantage of the crisis to unnecessarily increase the prices of basic goods and commodities.

Olivar said that any trader found guilty of not following the price ceiling would be charged to the fullest extent of the law, with the Price Act as basis.

“At times like this we can be overwhelmed by the magnitude of the tragedy that has just occurred and the challenge to rebuild and recover,” Olivar said.

“For this reason it becomes very important to make our people fully aware of everything government is doing to provide succor and support as well as what we ourselves, in our individual capacities, can do for each other and for the common good,” he added.

Malacañang has assured the public that security forces have been deployed all around Metro Manila and other affected areas to ensure public order and safety in the aftermath of the massive floods last Saturday.

Deputy presidential spokesman Anthony Golez said the police have been directed to protect the public and prevent any mischief from being done while everyone is busy recovering from the crisis.

Members of the Philippine National Police and the Armed Forces of the Philippines have been assisting in the relief operations.

He said security forces were ordered to prevent looting since many residents were forced out of their homes by the floods.

Olivar also appealed to the public to be more responsible following reports that some outlandish text messages and rumors have been circulating about the typhoon, floods and even the government’s efforts to address the situation.

One such text message that has been circulating claimed that water was being released from the Marikina dam, aggravating the flood problem in the city.

Marikina City Mayor Marides Fernando and other concerned officials have debunked the rumor, which has no basis since there is no dam in the Marikina area.

Olivar emphasized that the spread of these rumors is not helping the situation at all and advised people to just help in the relief efforts.

“All we can do is to ask people to behave responsibly. We should watch out now for all sorts of outlandish text messages circulating,” Olivar said.

Meanwhile, President Arroyo was forced yesterday to cancel her trip to barangays Poblacion and Abangan Sur in Marilao, Bulacan because of the sudden downpour at around noon.

The President was supposed to personally distribute relief goods to the two barangays in Marilao after a ribbon-cutting ceremony of the Lubao Museum in her hometown of Lubao, Pampanga. –Ma. Elisa Osorio and Marvin Sy (The Philippine Star)

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