DA eyes P50 price cap on imported rice

The Department of Agriculture is considering to impose a P50 price ceiling on imported rice as global tensions have resulted in an increase in shipping and farm input costs. 

Agriculture Secretary Francisco Tiu Laurel Jr. said the P50 per kilo on imported rice would keep retail prices in check without dragging down farmgate prices for palay.

“We are studying the imposition of a price cap on imported rice, possibly P50 per kilo,” Tiu Laurel said in a press statement on Monday. 

He said the DA is looking at the legality of imposing a price ceiling and, if legally permissible, will be recommended to President Ferdinand “Bongbong” Marcos Jr. as part of the government measures to address the impact of the oil price shocks. 

Tiu Laurel, meanwhile, said a similar ceiling on locally produced rice is unlikely at present. 

The DA chief warned that premature controls could trigger a price collapse at a time when Filipino farmers are enjoying improved palay prices during the current harvest cycle.

“We may impose a price cap on local rice after the harvest to avoid profiteering,” he said.

Tiu Laurel said the impact of Middle East tension is already evident in rice imports. 

He said freight rates have doubled, pushing the landed cost of the widely imported DT8 variety close to $500 per metric ton. 

Despite the higher costs, Tiu Laurel said retail prices of P60 to P65 per kilo being reported in some markets are “bordering on profiteering.”

The DA has directed state-run firms such as Food Terminal Inc. and Planters Products Inc. to sell rice at P45 and at P48 per kilo. 

They have started selling in Metro Manila and may expand to Southern Luzon, Cebu and other major cities. — RSJ, GMA Integrated News