September 8, 2015
Business World (Claire-Ann Marie C. Feliciano) | http://goo.gl/iK52NH
THE AGRICULTURE department has suspended the implementation of guidelines that will pave the way for the regular monitoring of all agricultural commodities nationwide.
The agency announced in a statement yesterday that effectivity of the an administrative order published last week, which signals the execution of the implementing rules and regulations (IRR) of Republic Act No. 7581 or the Price Act of 1992.
“Following reports of private groups raising additional concerns on the IRR, Agriculture Secretary Proceso J. Alcala has issued a suspension order...,” the statement read, adding this will “afford stakeholders additional opportunity to raise their concerns on the IRR.”
The IRR was to have taken effect 15 days from publication.
The Department of Agriculture (DA) said a series of nationwide consultations will be conducted immediately after the publication of the suspension order.
“These will be a second round as consultations had already been conducted prior to the finalization of the IRR in the last quarter of 2014,” it said.
Agriculture Assistant Secretary Leandro H. Gazmin said the consultations will focus on contentious areas such as profiteering issues and mechanisms for setting the suggested retail price (SRP).
“Other groups also look at [some provisions of] the IRR as price control mechanism. We just look at it as SRP -- a guide -- and not a price freeze mechanism,” Mr. Gazmin was quoted in the statement as saying.
He added that in the case of profiteering -- or when products are sold in excess of 10% of the SRP -- the agency will issue a show cause directive that will provide the concerned business establishment an opportunity to explain their side.
“This IRR shall ensure that due process is observed,” according to Mr. Gazmin, adding that provisions of the IRR is consistent with the law.
According to the order earlier published, the agency will create provincial-level or regional-level technical working groups for SRP supervision.
“We’re veering away from national-level scope considering local conditions such as calamities. Supervision of SRP should be regional and location-specific,” Mr. Gazmin said.
The DA said in its order that it will create a Bantay Presyo Technical Committee (BPTC) to formally take over the regular monitoring of the prices of agricultural commodities.
It will be headed by an assistant secretary to be appointed by the DA chief. Other agencies like the Bureau of Plant Industry, Bureau of Animal Industry, and Bureau of Fisheries and Aquatic Resources; National Meat Inspection Services; National Dairy Authority and Sugar Regulatory Administration will also be represented.
The BPTC should meet at least once a month and recommend to the DA secretary measures needed to effectively implement the Price Act, which was promulgated to “ensure the availability of basic necessities and prime commodities at all times without denying legitimate business a fair return of investment.”
The DA has jurisdiction over staples like rice, corn, root crops, fresh and dried fish, and other marine products; fresh pork, beef, and poultry meat; fresh eggs; fresh milk; fresh vegetables; fresh fruits; sugar; and cooking oil.
It is also in charge of prime commodities: dried pork, dried beef and poultry meat; fresh dairy products not classified as basic necessities; onions and garlic; fertilizers, pesticides, herbicides, poultry, livestock, and fishery feeds; as well as veterinary products.
The DA is mandated to conduct regular monitoring of prices and supply of these necessities and commodities, and to create a task force to carry out this responsibility.
The administrative order further showed that the BPTC will set the criteria and mechanism for the determination of the SRP for agricultural commodities.
DA regional offices will also have their respective BPTCs -- the composition of which will be determined by the regional executive director.
The order also showed that the DA Secretary, upon recommendation of the BPTC, should issue the SRP for particular agricultural commodities on a per province or region basis.
The BPTC should notify the National Price Coordinating Council of any SRP issued or lifted.
Within 24 hours, the SRP must be disseminated to consumers through various government agencies.
Possible penalties for SRP violations include permanent closure of establishment; confiscation of products subject of the violation; suspension, revocation or cancellation of permits issued by the DA; issuance of cease and desist orders; censure; reprimand; or financial penalties.
Fines are based on the percentage of excess in prescribed price and can range from P1,000 to P1 million. -- Claire-Ann Marie C. Feliciano