THE Department of Agriculture (DA) on Tuesday warned retailers and vendors in Metro Manila they face penalties of as much as P1 million if their mark-up price on some prime farm products is way beyond the suggested retail prices (SRP).
Agriculture Secretary Emmanuel F. Piñol said the purpose of SRP “is not to bring down but to stabilize” the retail prices of farm products in the market today.
“SRP will only allow a 10-percent adjusment in the prices. Your selling price should not increase more than that. If you go beyond [10 percent] you can be charged with profiteering, where succeeding violations can result in as high as a P1-million fine,” Piñol said.
Piñol signed on Monday an administrative circular that implemented the SRP on certain
farm commodities being sold in Metro Manila.
The farm products covered by the circular are regular-milled rice at P39 per kilogram; milkfish (medium to big size, two to five pieces) at P150 per kg; tilapia (medium size, six pieces) at P100 per kg; galunggong (medium size; 11 to 20 pieces) at P140 per kg; red onion at P95 per kg; white onion at P75 per kg; garlic (imported) at P70 per kg; and garlic (local) at P120 per kilo.
“We have to do it fast because we do not want the consumers complaining. We are performing a delicate balancing act,” Piñol said. “While we would want farmers to earn more, we cannot just sacrifice the consumers.”
The agriculture chief said the DA, in coordination with the Departments of Trade and Industry and Department of the Interior and Local Government will constantly monitor the implementation of the SRP on farm products. The implementation was based on the provisions of Republic Act 7581, also known as the Price Act, according to the administrative circular.
“Pursuant to RA 7581, Section 10. Powers and Responsibilities of Implementing Agencies, Item no. 5, states that the head of the implementing agency may from time to time issue suggested reasonable retail prices for any or all basic necessities and prime commodities under his jurisdiction,” the document read.
The farm commodities covered by the administrative circular should not be sold by 10 percent higher than the SRPs as this would be investigated for profiteering, according to the Price Act. Profiteering is considered an illegal act of price manipulation under the law.
Under the Price Act, profiteering is defined as “the sale or offering for sale of any basic necessity or prime commodity at a price grossly in excess of its true worth.”
“There shall be prima facie evidence of profiteering whenever a basic necessity or prime commodity being sold: (a) has no price tag; (b) is misrepresented as to its weight or measurement; (c) is adulterated or diluted; or (d) whenever a person raises the price of any basic necessity or prime commodity he sells or offers for sale to the general public by more than ten percent (10 percent) of its price in the immediately preceding month: Provided, That, in the case of agricultural crops, fresh fish, fresh marine products, and other seasonal products covered by this Act and as determined by the implementing agency, the prima facie provisions shall not apply,” the law read.
Under the Price Act, the agriculture chief is vested with the power to conduct investigations of any violations of the law concerning the commodities under his jurisdiction.
More so, the agriculture could impose administrative fines “in such amount as he may deem reasonable, which shall in no case be less than P1,000 nor more than P1 million.”
Furthermore, the law stipulates that violations involving basic necessities, which include farm commodities, “shall be deemed more serious” than those committed for prime commodities.
Aside from the penalty that the implementing agency could impose on violators of the Price Act, a penalty is imposed by the law on people who commit illegal price manipulation acts.
Under Section 15 of the law, a person found violating the law by virtue of manipulating prices shall be imprisoned for a period of not less than five years nor more than 15 years. Furthermore, the violator “shall be imposed a fine of not less than P5,000 nor more than P2 million” according to the Price Act.
Image credits: Nonoy Lacza