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DA eyes 10-day buffer stock on rice, corn, pork

25 April 2024

A 10-DAY buffer stock for select agricultural products has been proposed to ensure that prices of commodities will be stable, the Department of Trade and Industry (DTI) said on Monday, April 22.

During the meeting of the National Price Coordinating Council, DTI Consumer Protection Group assistant secretary Amanda Nograles shared the Department of Agriculture’s (DA) proposal to craft implementing rules and regulations (IRR) on buffer stocking on agricultural products.

Commodities eyed to be procured for buffer stocking are products identified to be drivers of inflation including rice, corn, sugar, onion, pork, and fertilizers.

“Ang goal po sana nito in addition to creating a market-based mechanism to decrease the price by increasing the supply, magiging deterrent din siya sa mga hoarders ‘tsaka those who are engaged in illegal price manipulation,” Nograles said.

Nograles noted that if implemented, this will be the first time that buffer stocking for agricultural products will be invoked under the Price Act.

“Kasi ang lumalabas,’ ‘pag merong buffer stock tayo, iisipin nila the government can intervene anytime and it can be a deterrent for illegal price manipulation,” Nograles said.

During the meeting, the Bangko Sentral ng Pilipinas projected that inflation may shift towards the upper end of the government target of 2 to 4 percent driven by the increase in prices of rice, vegetables and meat.

DTI Undersecretary Ed Sunico said they are looking to partner with the private sector for cold storage for these agricultural products should the 10-day buffer stocking be implemented.

While the DA is looking to craft the IRR for the 10-day buffer stocking of agricultural products, DTI said that an IRR is not required under the Price Act for the implementing agency to implement buffer stocking.

Section 9 of the Price Act gives power to the implementing agency to procure, purchase, import, or stockpile basic commodities and to distribute these for sale to address supply shortages or if there is a need to effect changes in its prevailing price. (ABS-CBN News)

Source : panaynews