Law Summary
Scope of the Price Ceiling
- The price ceiling applies specifically to palay, which is unhusked rice.
- The measurement basis is one cavan, equivalent to 44 kilograms of Macan, ordinary quality.
- The fixed ceiling price is set at P11 per cavan F.O.B. Manila.
Price Determination Outside Manila
- For areas outside Manila, the ceiling price is determined by deducting actual transportation costs from the Manila F.O.B. price.
- Transportation costs are calculated from the purchase point to Manila.
- The General Manager of the Price Stabilization Corporation is tasked with determining these transportation costs.
Weight Standardization and Shrinkage Allowance
- The General Manager also establishes standard weight estimates per sack of palay.
- This accounts for the varying periods from harvest to sale.
- Such standards provide allowances for shrinkage, reflecting natural weight loss over time.
Implementation and Enforcement
- The order is effective as of December 1, 1950.
- Issued under the authority vested in the President.
- Enforcement responsibility lies with the Price Stabilization Corporation through its General Manager.
Legal and Administrative Significance
- This Executive Order institutes a market intervention to stabilize prices of a critical agricultural commodity.
- Recognizes transportation cost and product quality/time factors in price fixing.
- Demonstrates government control over commodity pricing during a national policy period.