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PRICES of rice in Cebu City have been decreasing recently, but not for long as there is a looming price increase due to supply availability.

Erwin Gok-ong, chairman of the Cebu Market Vendors Multi-Purpose Cooperative, told SunStar Cebu on Aug. 8, 2024, that rice prices in the Carbon Public Market remain stable following the announcement of Executive Order (EO) 62 by President Ferdinand Marcos Jr.

In July, consumers in Cebu City were able to save at least P3 to P4 per kilo on rice purchases since the implementation of EO 62.

Marcos ordered to lower tariffs on imported rice from 15 to 35 percent in line with EO 62, which he announced last June 20.

However, Gok-ong noted that, with the current state of low stocks of imported rice in the markets, prices may increase in the following months.

“The price decrease is steady, but there is a chance that it might slightly increase again. The trench on the decrease in rice prices stopped because it is unfair if the decrease goes on and then there are not many imported stocks in the market,” said Gok-ong in Cebuano.

Gok-ong said that one factor contributing to the possible increase is inclement weather conditions, which may delay the delivery of imported rice and affect the supply chain.

“One of the factors is that Filipinos, importers, and big traders bought the imported rice late, and with the weather conditions, ships might not be able to sail and the rice will not be immediately unloaded on time,” said Gok-ong.

He also said that rice prices might also increase due to imported rice suppliers raising their prices.

Maricel Lipardo, president of the rice and corn section in Lapu-Lapu City Public Market, also said that recently there have been no available stocks.

Lipardo added that she is unsure if rice rates will increase or decrease in the following months, considering the availability of stocks.

“There is a possibility that there will not be a major decrease in rice prices because it will depend on supply and demand. So if there is a lot of supply, usually rice rates will decrease, especially if there is a lot of imported rice,” said Lipardo in Cebuano.

“Local produce is not that much. That’s why we depend on imported rice. If there’s a lot of imported rice, for sure, rice prices will decline,” she added.

Prices declined last month in the Lapu-Lapu Public Market, amounting to P58 from P62 and P50 to P42 per kilo, Lipardo said.

Lipardo also emphasized that the price decrease due to EO 62 imposes both positive and negative impacts on consumers and vendors.

“The positive aspect of the decrease is that the masses will buy more. However, the negative side is that profit will not be that big because we need to go with the flow,” said Lipardo.

However, she said that rice dwellers are not threatened by the price decrease because they simply buy from the supplier.

“As owners, we also think of the consumers. We are not in control of the price increase or decrease. So if there’s a price decrease, then the better because it will benefit the masses,” said Lipardo. /DPC

Source : sunstar