DA wants ‘maximum SRP’ on imported rice

Metro Manila, Philippines - The government wants to limit prices of imported rice — to be called maximum suggested retail price (MSRP) — to curb possible profiteering and prevent excessive retail costs.

As of Monday, Jan. 6, the Department of Agriculture (DA) said imported rice products were sold for P40 to P63 in Metro Manila markets.

“Dapat wala nang P60 rice na imported na nakikita sa merkado,” Agriculture Secretary Francisco Tiu Laurel Jr. said. “P60 na imported rice is already profiteering in my opinion.”

[Translation: There should be no P60 imported rice in markets. Imported rice sold for P60 is already profiteering in my opinion.]

Laurel said the MSRP is not a price cap.

In September 2023, President Ferdinand Marcos Jr. ordered a price cap on regular milled rice and well-milled rice for ₱41 and ₱45 per kilogram (kg), respectively. It was lifted a month after.

In a separate interview, Agriculture spokesperson Arnel de Mesa also said the maximum SRP is different from the regular SRP.

“Kasi pag SRP, ito ‘yung, according sa Price Act, within plus or minus 10%. Ito is MSRP, maximum suggested retail price, merong basis ng computation bakit hanggang dito dapat yung suggested retail prices,” De Mesa said.

[Translation: According to the Price Act, the SRP is within plus or minus 10%. The MSRP has a basis of computation as to why suggested retail prices should only be at this level.]

De Mesa explained that the computation for landed costs includes the tariff, shipping fee, and exchange rate.

The MSRP would give consumers an idea on what the price level is based on expenses before the imported rice enters the market, De Mesa said.

“Nagkaroon na rin kasi ng consultation sa mga importers. Nung isang araw, they all agree na these are possibilities and para mawala na rin yung sobrang pagpepresyo ng bigas sa mga pamilihan,” De Mesa said.

[Translation: There has been a consultation with importers and they all agree that these are possibilities to address high rice price.]

For farmer group Samahang Industriya ng Agrikultura (SINAG), the government should peg the MSRP at P42 to P45 per kg, the range earlier promised by importers.

The group said the new Anti-Agriculture Economic sabotage Act should also be applied to impose punitive action.

Laurel said he would be talking with more retailers and importers about the issue.

He said he requested a meeting with the Department of Trade and Industry, Bureau of Internal Revenue, National Bureau of Investigation, Department of Interior and Local Government, and Philippine National Police regarding the move, as well as looking into the profiteering angle under the Price Act.

“Kung ano ‘yong consequences ng ma-label ka ng profiteering, we will use that,” he said.

[Translation: We will also use the same consequences set when you are deemed profiteering.]

The agriculture chief earlier said the DA is considering the removal of special and premium labels on imported rice, arguing the labels were used as justification to keep high prices.

Hinting at developments in the possible policy, De Mesa said imported rice in markets would have to replace the labels with information, such as the rice type, country of origin, and condition.

The DA is also finalizing the roll-out of cheap “sulit” rice and “nutri” rice in Metro Manila.