DA considers removing rice labeling to help reduce retail prices

Metro Manila, Philippines - The “special” and “premium” labeling on rice products in markets may be removed to help reduce what the government considers as “inflated” retail prices, the Department of Agriculture (DA) said on Thursday, Dec. 26.

The DA announced its plan amid concerns of alleged price manipulation from some industry players that may have led to relatively high prices despite a tariff cut on imports.

In an interview, Agriculture spokesperson Arnel de Mesa said retailers may have exploited the labeling. He said the DA usually monitors regular and well-milled rice only.

“Pag na-classify ng ganun, ang presyo niya mas mahal [Once classified as such, it's expensive], they can be priced at a higher price,” De Mesa said.

“Halimbawa, ang landed (cost) niya P40 lang, pero dahil gagawin nila iba-brand nila premium or special, at ganito ‘yong brand, ang magiging presyo niya higher, nakita namin P60 plus. So parang sobrang-sobrang profit na nakukuha nila,” he added.

[Translation: For example, the landed cost is P40. But since the rice will be labeled as premium or special, and it's in a certain brand, the price will be higher. We previously saw P60 plus. That’s too much profit.]

The DA is also studying a plan to remove brand names of rice in market stalls. Agriculture Secretary Francisco Tiu Laurel Jr. earlier explained that brand names refer to denorado, buko pandan, and coco pandan, among others.

“After conducting a series of market visits, we now have reason to believe that some retailers and traders are intentionally confusing Filipino consumers with branded imports to justify the high prices of rice,” Laurel said in a statement.

The DA observed the high prices for branded imports in its Dec. 19 price monitoring at the Guadalupe Public Market in Makati City.

Laurel said he directed the agency to list expensive brands to trace the importers and determine the actual price of the imported commodity.

“Alam niyo naman dati akong negosyante so kaya kong himayin nang masinsinan ito at makita ko ‘yong landed cost para makita ko 'yong margin nila na unreasonable,” he told reporters.

[Translation: As you all know, I'm a former businessman so I can dissect this, check the landed cost, and know their unreasonable margin.]

‘Import monitoring first’

Meanwhile, industry group Samahang Industriya ng Agrikultura (SINAG) urged the DA to strengthen its import monitoring mechanism before pursuing retailers in lowering prices.

“Iisahin mo ‘yong retailers, talagang mahihirapan ka tapos scot-free ang importers,” Jayson Cainglet, SINAG executive director, told NewsWatch Plus.

“Sila ‘yong puno’t dulo ng problema, hindi naman ‘yong retailers. ‘Yong retailers binabagsakan lang ‘yan,” he said.

[Translation: Checking retailers individually is a difficult task then the importers are scot-free. The importers are the source of the problem. The retailers are just at the end of the chain.]

“Saan nila (importers) nilagay ‘yong mga bigas na dapat ay binebenta sa P38 to P40 pesos as early as September? … ‘Yong P16 billion foregone revenues sa kanila napunta,” he said.

[Translation: Where did they store the rice supply that should have been sold at P38 to P40 as early as September? The P16 billion foregone revenues went to them.]

In one of the congressional hearings, the DA said the majority of rice storage warehouses are unregistered, hindering inspection and monitoring operations of the agency.

On Dec. 23, the agency said special imported rice costs P55 to P64 per kilogram (kg), while premium imported rice at P52 to P60 in Metro Manila markets.

Per kg-price of regular milled imported rice was at P44 to P45 while P40 to P56 for well-milled imported rice.

Local commercial rice sold for P39 to P61 per kg across the four types.