The Price Act: Intro

Whew! Been a while. Things have been pretty hectic that I wasn't able to write for some time.

RA 7581, the Price Act, was created in order to ensure the availability of basic necessities and prime commodities to consumers without denying legitimate businesses a fair ROI. Its aims are the following:

1.) Develop, adopt and promulgate measures to promote productivity in basic necessities and prime commodities

2.) Develop an improved and efficient transport and distribution system

3.) Develop, adopt and promulgate measures to stabilize prices at reasonable levels

4.) Provide appropriate penalties for violations of the Price Act

5.) Establish a mechanism to readily protect consumers from inadequate supply and unreasonable price increases in time of calamity, emergencies and similar events

With regard to #5, a “buffer fund” is to be created for each of the 4 agencies concerned (see below) to cover the importation, purchase, procuring and stockpiling of basic necessities and prime commodities to be sold at reasonable prices in the event of a shortage of supply or a need to change the prevailing price. This fund is not to be used in the agency's normal and regular operation.

Coverage

1.) Basic Necessities

These include the following: rice, corn, bread (although flour is classified as a prime commodity,) fish and other marine products (whether canned, dried or fresh,) fresh meat (beef, pork and poultry,) fresh eggs, fresh and processed milk, fresh vegetables and root crops (like potatoes,) coffee, sugar, cooking oil, salt, laundry soap, detergents, firewood, charcoal, candles and drugs classified as essential by the DOH.

2.) Prime Commodities

These are: fresh fruit (rather weird, if you'd ask me,) flour (although bread is classified as a basic necessity,) dried, processed and canned meat, fresh dairy products not considered basic necessities (like cheese and butter,) noodles (outrageous, since people eat them every day,) onions, garlic, bath soap, soy sauce, patis and vinegar (these should be classified as basic necessities,) fertilizers, herbicide and pesticide (then why are vegetables classified as basic necessities?,) poultry, swine and cattle feeds as well as their veterinary products (same comment,) paper and school supplies (what the heck?,) nipa shingles, sawali, cement, clinker, GI sheets, hollow blocks, plywood, plyboard, construction nails, batteries, electrical supplies light bulbs, steel wire and drugs not classified by the DOH as essential.

RA 7581 doesn't cover luxury items and nonessential goods, and under sec. 4,  the president may approve the exclusion of certain goods from the classification of prime commodities and basic necessities by the relevant implementing agency after the agency in question has held a public hearing upon petition of concerned parties. The pertinent agencies are: the DOH, DTI, DENR and the Department of Agriculture.  The Department of Agriculture's jurisdiction covers crops, marine products, fresh meat, fresh poultry and dairy products, fertilizers and other farm inputs. The DOH's jurisdiction is over drugs. The DENR has jurisdiction over wood and other forest products. The DTI's jurisdiction covers all other basic necessities and prime commodities.

Any brand that has been excluded can be reinstated by the agency concerned in times acute shortage  of the basic necessity or prime commodity to which the brand in question used to belong.

Here are some other terms you need to take stock of:

1.) Panic-buying

An abnormal phenomenon where consumers buy basic necessities and prime commodities grossly in excess of their normal consumption. The result is a shortage of such goods to the prejudice of less privileged consumers.

2.) Prevailing Price

The average price a basic necessity is sold for within a month from the occurrence of any of the conditions enumerated in sec. 6 of the Price Act.

3.) Price Ceiling

The maximum price a basic necessity or prime commodity can be sold to the general public.