Setting New Price Ceilings for Rice and Corn Grains

May 29, 1976

LETTER OF INSTRUCTIONS NO. 413

WHEREAS, consistent with the government's objective to encourage agricultural production in order to assure self-sufficiency, as well as surplus production for export, of rice and corn, it becomes necessary to adjust the price ceiling in relation to marketing costs which have increased for the past two (2) years; cd i

WHEREAS, the new price ceilings are expected to maintain the incentives being provided to the country's rice and corn farmers in order to sustain the momentum of their production efforts;

WHEREAS, the new prices will provide the farmers with additional income to cushion the effects of increased wages, increased transport cost and high cost of farm inputs, such as fertilizers, insecticides, fuel, farm equipment, among others;

WHEREAS, the new ceiling prices are expected to benefit all the sectors of the entire rice and corn industry and to strengthen its viability;

WHEREAS, despite the price increases of most basic commodities, the price ceilings for rice and corn have remained stable for almost three years or since January and February, 1974, respectively, and that during the same period, the floor price for the farmer's produce was increased twice without a corresponding increase in the ceiling price;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me in law, do hereby direct that the price support and price ceiling of the following grains shall be: acd

PRICE SUPPORT	:	PALAY	-	P1.10/KILO
		CORN	-	0.90/KILO
		GRAINS
PRICE CEILING	:	RICE	-	P2.10/KILO
		CORN	-	1.60/KILO

Likewise, the ceiling price for corn grains set forth under LOI No. 165 is hereby ordered revoked.

The National Grains Authority is hereby empowered to set the ceiling prices of palay and corn by-products.

The NGA is further ordered to promulgate the corresponding circular necessary for the effective implementation of this Letter of Instructions. aisa dc

Finally, the directives set forth in LOI Nos. 157, 165 and 228 which are inconsistent herewith are hereby modified and/or amended accordingly.

This Order shall take effect immediately.

DONE in the City of Manila, this 29th day of May, in the year of Our Lord, Nineteen Hundred and Seventy-Six.