Govt imposes two-month price control on key goods

THE government has imposed a price freeze on basic commodities in Metro Manila and 24 other areas under a state of calamity in the wake of storm Ondoy.

The pegs the prices of basic commodities such as rice, corn, bread, fish, pork, beef, chicken, fresh eggs, vegetables, milk, coffee, sugar, cooking oil, laundry soap, charcoal, candles and essential drugs at the same level for 60 days.

The Trade Department has also recommended that the President impose price controls on prime commodities. That would affect fresh fruit, flour, canned goods, noodles, onions and garlic, herbicides, poultry, swine and cattle feeds, veterinary products, paper, school supplies, plyboard and other construction materials, batteries and non-essential drugs.

Petroleum products are not covered by the Price Act and do not fall under price control.

Trade Secretary Peter Favila warned traders, retailers and business establishments that those found guilty of violating the price ceilings face up to P1 million in fines and imprisonment of up to 10 years.

Those found guilty of price manipulation face fines of P2 million and imprisonment of up to 15 years.

Price controls will run for 60 days unless lifted by the President, who may extend them on the trade secretary’s recommendation if there is a residual impact from the calamity.

Based on a Trade Department bulletin, the price ceiling for rice is P30 a kilogram for regular milled, P35 for well-milled commercial, and P40 for premium commercial varieties. Pork belly should not be sold for more than P170 a kilo, and whole chicken for no more than P130 a kilo.

The price ceiling for other products are as follows: refined sugar P38, brown P30/kg; cooking oil P18 a small bottle; 155-gram canned sardines for P12 in wet markets and P11.40 to P11.75 in supermarkets; condensed milk-Alaska filled milk 300 ml P46 in wet markets and P45 in supermarkets; Milkmaid full cream milk 305 ml at P52 in wet markets and P51 in supermarkets; evaporated milk-Alaska filled milk 370 ml at P33 in wet markets and P32.50 in supermarkets; Angel filled-milk 410 ml at P34 in wet markets and P34.15 in supermarkets; Alpine full-cream milk 378 ml at P44 in wet markets and P43.50 in supermarkets; powdered Alaska filled-milk 150g P41 in wet markets and supermarkets; Bear Brand filled-milk 180g at P50 in wet markets and P49.75 in supermarkets; and Nido Fortified full-cream milk 150g at P70 in wet markets and P68.70 in supermarkets.

Instant noodles chicken flavor costs P6.50 in both wet markets and supermarkets for Lucky Me brand, P6 and P6.50 in wet markets and supermarkets, respectively, for Maggi; while Payless costs P6 in wet markets and P5.70 in supermarkets.

Detergents Mr. Clean 420g are sold at P20 in wet markets and P19.75 in supermarkets; Tide for P23.95 in both wet markets and supermarkets; and Surf Bar Kalamansi for P19 in wet markets and P18.50 in supermarkets.

Coffee refills cost P14 to P14.60 for 25g Blend 45; P16.75-P17 for Great Taste (granules); and P35 to P35.50 for 50g Nescafe Classic.

Agriculture Secretary Arthur Yap said the government had made available P100 million in an emergency fund to buy chicken, basic vegetables, fish and meat that would be sold to alternate markets to be opened within the next two days to serve flood-hit areas.

At the same press conference, Favila said various industry groups had assured him of an adequate supply of goods. But he acknowledged that getting those supplies delivered to the marketplace was a logistical challenge.

Yap said his department was speeding up its assessment of crop damage inflicted by typhoon Ondoy.

Initial reports showed that in Southern Luzon alone, at least P95 million worth of rice and high-value commercial cash crops were destroyed in Laguna, Batangas, Cavite and Quezon.

Yap estimated the damage to agriculture in Central Luzon at P500 million.

Supermarket owners yesterday said many of their stores could not be opened because those were in flooded areas.

Stephen Cua, president of the Philippine Amalgamated Supermarkets Association Inc., said there was a notable increase in demand for water and canned goods from local government units and groups offering relief to typhoon victims.

“We are advising the public to avoid hoarding so as not to put further pressure on the supply. At the moment, we have a problem on logistics and our suppliers cannot bring their goods to the supermarkets,” said Cua, adding supermarkets on the average had seven-day inventories.

Alaska Milk Corp. announced that it would temporarily shut down operations in its San Pedro, Laguna, plant because of the flooding. The company accounts for 85 percent of the milk market.

Favila said the company had assured him that its inventory was enough, but added that if needed, the government would import milk. –Elaine R. Alanguilan with Othel V. Campos, Manila Standard Today