DA gets price council backing on P50-cap on imported rice

The Department of Agriculture (DA) has secured the backing of the National Price Coordinating Council (NPCC) to impose a cap on the retail prices of imported rice.

In a statement on Saturday, the DA said the NPCC endorsed the imposition of a P50-per-kilo price ceiling on imported rice amid expectations that the global oil price shock due to the Middle East war could raise food costs in the country.

With this, the proposal is now awaiting the approval of President Ferdinand "Bongbong" Marcos Jr.

The Palace earlier said Marcos was supportive of the proposal to cap imported rice prices. 

The DA said the proposed price ceiling, once approved, would cover imported rice with 5% broken grains and would remain in effect for 30 days.

By limiting the measure to 30 days, the agency said policymakers appear to be signaling a stop-gap approach or one that buys time while monitoring market response.

The Agriculture Department said the initiative was designed as a targeted intervention to temper price increases in the country's most essential food staple while broader inflationary pressures persist amid the escalating Middle East conflict.

Agriculture Secretary Francisco Tiu Laurel Jr. flagged that it would be "unreasonable" now to increase the retail prices of rice beyond P50 per kilo as the grains arrived in the country prior to the US-Israel offensive on Iran, which commenced on February 28, were bought at a lower landed cost.

"With global oil shocks feeding into higher food prices, this measure delivers immediate relief to consumers while reinforcing the government's commitment to keep rice accessible, affordable, and fairly priced," said Tiu Laurel. — VDV, GMA Integrated News