EO 118: Mandated Price Ceiling on Imported Rice
Legal question
How does a mandated price ceiling on rice work, and what happens to sellers who exceed it?
Applicable laws and rules to discuss
- Executive Order No. 118, imposing a rice price ceiling
- Republic Act No. 7581, the Price Act, as amended
- Republic Act No. 11203, the Rice Tariffication Law
The number, the product, and the clock
The Order imposes a mandated price ceiling of fifty pesos per kilogram (₱50.00/kg) on imported rice, specifically the 5% broken grade, implemented nationwide for thirty days — unless lifted earlier by the President on the recommendation of the National Price Coordinating Council. It is a defined, short-duration intervention, not an open-ended cap.
It is reviewed every fifteen days
The NPCC must conduct a periodic review every fifteen days and recommend to the President whether to continue, adjust, or lift the ceiling based on prevailing market conditions and available data. Retailers should expect the figure and the ceiling's existence to be revisited well within the thirty-day window.
Four agencies enforce it, in different ways
DTI and DA ensure strict and uniform enforcement, including monitoring and investigating abnormal price movements, with DILG providing support. The Bureau of Customs runs inspections against hoarding, smuggling, and illegal rice importation, including confiscation, seizure, or forfeiture. The Philippine Competition Commission acts against cartelization and abuse of dominance. The PNP and other law enforcement agencies provide enforcement support.
Who this affects
Rice retailers and wholesalers should keep records showing compliant pricing, and be aware that the enforcement net here is wider than a DTI price inspection — it reaches customs seizure and competition-law exposure.
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