Price cap, expanded MSRP on imported rice options if latest move fails - DA official

Metro Manila, Philippines - A possible price cap on imported rice as well as expanding the maximum suggested retail price (SRP) to other imported varieties are options if current programs fail to bring prices down, the Department of Agriculture (DA) said.

The DA will implement the maximum SRP of P58 per kilogram for imported premium rice, which has no more than 5% broken grains, on Jan. 20, to curb suspected profiteering. 

Sarangani Rep. Steven Chiongbian Solon said the DA should impose the maximum SRP on all imported varieties during the hearing of the House quinta committee on Wednesday, Jan. 15.

“We know retail prices are sticky, so it’s going to take some time before regular-milled prices come down, well-milled rice prices come down,” Solon said.

Agriculture Undersecretary Asis Perez said this has been considered.

“Kaya lang kami nag-umpisa doon sa P58 kasi wala pong [We will begin with P58 because we don’t have the] experience to do that. Since this is like a pilot, we wanted to look at it and analyze further how we can improve. That’s part of the strategy,” Perez said.

Lawmakers also said the maximum SRP of P58 per kilogram was still high.

On Monday, Agriculture spokesperson Arnel de Mesa said the maximum SRP for imported rice may further decline to P45 per kilogram as the DA sees a decline in global rice prices.

Perez acknowledged that there’s a “better way to address” the issue of rice prices, but he also admitted working on the formula.

Iloilo 4th District Rep. Ferjenel Biron, a committee co-chairperson, questioned the move of the DA to benchmark the maximum SRP on the landed cost of imported rice, and not from local production.

“If you use that domestic benchmark as a basis to formulate your MSRP, then you will force the importers to bring down their price,” Biron said.

House members also asked government officials if the situation on rice prices would already be a basis for declaring a food security emergency.

Cherryl Carbonell, a director from the Department of Trade and Industry, said the National Price Coordinating Council convened on Tuesday.

“We are still preparing the resolution. Tintingnan namin ang formula and indicators that could support kung meron talagang [We’re checking the formula and indicators that could support if there is an] extraordinary increase in price,” Carbonell said.

An extraordinary increase in price would allow the DA to declare a food security emergency, something that would help the agency to stabilize prices.

“It’s not that we don’t understand that this is an emergency,” Perez said.

“Pag hindi sumunod ‘yong presyo sa pagbaba [If prices still won’t go down], then we will use Section 6 of the Price Act where there will be a price cap. This time, we will be recommending to the president to put a price cap,” he added.

In September 2023, President Ferdinand Marcos Jr. ordered a nationwide price cap of P41 on regular-milled rice and P56 on well-milled rice. It was lifted a month later, with the intended outcome of bringing down prices unmet.

The planned maximum SRP for imported rice is a move to temper prices of the staple as consumers still complain of elevated prices despite the tariff cut last July.

“The theory, as you can see, is not happening,” Perez said. “Just to be fair to the DA, na-attribute sa amin ang promise [the promise has been attributed to us]. It's not really just ours. It’s a collective view.”