TO prepare for a severe El Niño, Sen. Francis Pangilinan on Monday urged the government to automatically freeze prices in areas placed under a state of calamity and intensify its crackdown on hoarders, profiteers and cartels.
In a statement, Pangilinan called on the Department of Trade and Industry (DTI), Department of Agriculture (DA), Department of Health and Price Coordinating Council to step up market monitoring, enforce price controls, and recommend price ceilings to protect consumers from unreasonable increases.
“We must not allow anyone to profit from an impending calamity at the expense of Filipinos who are already struggling, particularly farmers and fisherfolk who also have to buy food in the markets. During a crisis, consumers must be protected from exploitation,” he said.
He cited Section 6 of Republic Act 7581, or the Price Act, as amended by Republic Act 10623, which sets an automatic price freeze on basic necessities in areas declared under a state of calamity.
Under the law, prices are generally frozen at their prevailing levels for the duration of the condition that triggered the declaration, but for no more than 60 days.
For wholly imported and deregulated basic necessities, such as household liquefied petroleum gas and kerosene, the price freeze is limited to 15 days, taking into account existing inventory and supply levels.
Pangilinan, chairman of the Senate Committee on Agriculture, Food and Agrarian Reform, said government agencies and law enforcement authorities must also go after individuals and companies involved in hoarding, profiteering and cartel activities during periods of drought and water shortages.
Section 5 of the Price Act prohibits hoarding, profiteering and cartels involving basic necessities and prime commodities.
Pangilinan said the crackdown “must not end with frontline sellers. We must target those at the very top.”
“If we go after only small retailers, our efforts will be meaningless. We must hold big business operators, owners and the masterminds behind syndicates involved in hoarding and price manipulation accountable,” he said.
Under the Price Act, illegal price manipulation is punishable by imprisonment of five to 15 years and a fine ranging from P5,000 to P2 million.
Violations of automatic price freezes or mandated price ceilings are punishable by imprisonment of one to 10 years, a fine of P5,000 to P1 million, or both.
Pangilinan also warned that public officials who conspire in or knowingly conceal violations of the law could be held accountable.
He said consumer protection must go hand in hand with safeguarding food production and the livelihoods of farmers and fisherfolk, who are particularly vulnerable to prolonged droughts and water shortages.
“We know that a severe El Niño is approaching, so there is no reason for us not to prepare for its effects. It is time to be proactive rather than reactive. Our people will once again suffer if we fail to take the right, effective and immediate action,” Pangilinan said.
He urged the DA, National Irrigation Administration, concerned water agencies and utilities, and LGUs to repair and maintain irrigation facilities, communal water systems, pumps and distribution lines, while publishing irrigation schedules and water-supply advisories.
Pangilinan said the Declaration of State of Imminent Disaster Act (RA 12287) sets contingency plans to mitigate damage to agricultural products and the food supply in areas declared under a state of imminent disaster.
The Philippine Disaster Risk Reduction and Management Act of 2010 (RA 10121), meanwhile, provides for the programming or reprogramming of funds for the repair and safety upgrading of public infrastructure and facilities following a declaration of a state of calamity.
