Grain retailers could incur P6,000 in losses daily or up to P40,000 a week due to the price ceiling on rice that took effect Tuesday, with the P15,000 subsidy barely covering the foregone revenues.
Grains Retailers Confederation of the Philippines Inc. Eastern Visayas president Frederic Dy said at P2,450 per cavan of rice, retailers are spending P49 per kilo of rice.
Selling the rice at P45 per kilo would mean an automatic loss of P4 per kilo.
“That is just for the grain alone. How about the cellophane? The rent?
The manpower?” he said in a television interview, adding that daily loss could reach P6,000 for a minimum of 20 sacks sold per day.
“In a week, retailers stand to lose as much as P40,000. How long can a small retailer survive at that level of loss?” he added.
In MegaQ Mart in Quezon City, retailers complained that they incur an P8 loss for every kilogram of rice sold.
“They [government] said they will help us, that they will give us asubsidy to cover our losses. For now, we are cooperating,” rice retailer Rachel Saner said.
Agriculture Senior Usec. Domingo Panganiban said the government is aware of the predicament of the retailers, thus the approval of the P15,000 aid from the Department of Social Welfare and Development.
DSWD Secretary Rex Gatchalian, in a separate interview, said there are other government programs being eyed to help affected retailers.
“I’m sure there are other government programs. The Department of Trade and Industry, for example, can do microfinance. I know that is one of the mix of interventions that can be rolled out,” Gatchalian said.
“I don’t want to preempt any decision [but] one thing I can say, the President is aware and he listens to the plight of small rice retailers. He understands them so I won’t be surprised if there will be fresh instructions [for other interventions],” he added.