DA won't recommend rice price cap, SRP despite 15-year high rice inflation

The Department of Agriculture (DA) will not recommend the imposition of a retail price ceiling or suggested retail prices (SRPs) on rice despite the continued double-digit growth in the grain staple's inflation rate.

"Wala kaming plano na magkaroon ng price cap or SRP kasi may mabigat ding epekto 'yan pagdating ng panahon (We do not have a plan to impose price cap or SRP because it might have an ill effect in the future)," Agriculture Assistant Secretary and spokesperson Arnel de Mesa said at the Saturday News Forum in Quezon City.

Last year, President Ferdinand "Bongbong" Marcos Jr. issued Executive Order 39, which mandated a price cap of P41 per kilogram for regular-milled rice and P45 per kilogram for well-milled rice.

The price cap was implemented from September 5 until October 4, when Marcos lifted the measure.

Despite the issuance of EO 39, rice inflation still quickened in September 2023 to 17.9% and continued its upward trajectory until early this year.

In March 2024, rice inflation accelerated to 24.4%, its fastest in 15 years since it was recorded at 24.6% in February 2009.

The Philippine Statistics Authority (PSA) said rice inflation would "increase strong" until July, citing a low base effect, particularly the low rice inflation registered from January to July 2023.

Despite the double-digit, year-on-year rice inflation, De Mesa said retail prices of rice are actually declining month-on-month.

"'Yung presyo ng bigas bumababa from P52 [per kilo] last month. Ngayon, nasa P50 to P49 [per kilo]," he said.

(Rice prices dropped from P52 [per kilo] last month to the current P50 to P49 [per kilo].)

The DA official echoed the PSA's projection that rice inflation will continue its upward trajectory until July, but will normalize come August.

De Mesa also said that the President's campaign promise to bring down the retail price of rice to P20 per kilo remains as the DA's "aspiration and goal."

"Bagamat sa panahon ngayon medyo [hindi] pa po talagang maabot pero 'yung aming mga plano at aktibidades are geared towards reducing the cost to produce and for us to be competitive in the future," he said.

(Although we are unable to reach the goal at this time, our plans and activities are geared towards reducing the cost to produce and for us to be competitive in the future.)

"Kung kayang gawin ng ating mga karatig bansa na mapababa ang cost of production ay gagawin din natin," he added.

(If our neighboring countries can bring down the cost of production, we will do it, too.) — VDV, GMA Integrated News