DA seen extending P50/kilo rice price cap
The Department of Agriculture (DA) said the price cap of P50 per kilogram (kg) on imported rice may be extended to mitigate the lingering impact of the Middle East conflict on retail prices.
Agriculture Secretary Francisco Tiu Laurel Jr. said the 30-day price ceiling “may be extended” by up to two months to stabilize retail prices.
“Definitely, the crisis will not be over. Even if it’s over there, the effects of the crisis are not limited to 30 days. It might be affecting us until the end of the year,” Tiu Laurel said in an interview.
“There’s a good chance the price cap may be extended for another month or two,” he told reporters.
President Marcos issued Executive Order (EO) No. 118 imposing a price ceiling of P50 per kg on 5-percent broken imported rice nationwide for 30 days, unless earlier lifted by the President upon the National Price Coordinating Council’s recommendation.
The President’s directive, signed last week, aims “to address unjustified price increases, prevent market abuse and ensure the availability of affordable rice while maintaining market stability.”
The EO is one of the measures that the Marcos administration adopted to alleviate price spikes on essential goods amid the Middle East crisis, following the declaration of a state of national emergency.
But the Tiu Laurel said the DA is not ruling out imposing a suggested retail price (SRP) on locally produced regular and well-milled rice, subject to further assessment. He added that the SRP may vary by region.
“The computation [on the SRP] as of the moment is about P53 (per kg). We’re just finalizing the figures and we’re consulting (stakeholders) in different regions. It depends on each region,” Tiu Laurel said.
“What I’m saying is P53 [per kg] may apply to Metro Manila only. It’s different in Mindanao since it is far from rice-producing areas, so prices may be slightly higher. This may end up being regional,” he said.
Tiu Laurel said the DA is carefully studying this measure so as not to affect industry players, although he pointed out stakeholders are not required to comply with the SRP based on existing laws.
“Definitely, this is nonbinding. This is just a suggestion to guide our consumers on what the price should be,” he added.
Retailers, however, are not mandated to adhere to the SRP since the measure is voluntary in nature.
