THE Department of Agriculture (DA) is looking at expanding a proposed maximum suggested retail price (MSRP) for all rice varieties in a bid to lower rice prices quicker.
But it will first assess how the initial proposed MSRP for imported rice would play out before implementing a wider peak retail price on the staple food, Agriculture Undersecretary Asis G. Perez said on Wednesday.
The DA had set the MSRP at P58 per kilogram for imported rice with broken-grain content of 5%. The price ceiling is expected to take effect on Jan. 20, initially in Metro Manila.
“That’s being considered,” Mr. Perez said when he was asked by lawmakers about the possibility of broadening the rice cap.
“We started at P58 because we didn’t have prior experience,” he added. “Since this is like a pilot, we wanted to look at it and then analyze further how we can improve. But that’s part of the strategy.”
The Agriculture department noticed that retail prices for some imported rice brands remain elevated despite lower import tariffs.
President Ferdinand R. Marcos, Jr. last year issued Executive Order No. 62 which slashed tariffs on rice imports to 15% from 35% previously until 2028.
The DA is also looking at possibly implementing a price cap for rice products if it finds the retail market prices to be “unreasonable,” according to Mr. Perez. “We’re even considering a price cap itself.”
In December, the Philippine Statistics Authority reported an average price for well-milled rice of P54.97 per kilo.
“However, right now, we’re not doing that yet. We only used what we call the suggested retail price,” he said.
Mr. Perez said they implemented an MSRP in the hopes of sparking a trickle-down effect on persistently expensive rice prices.
“The theory is, if there’s a cap on premium [rice], regular mills will follow,” he said.
Employing a MSRP for imported, premium rice could lead to cheaper rice, said Steven T. Cua, executive director of the Philippine Amalgamated Supermarkets Association, supporting DA’s assertions.
“If the DA will come up with a statement saying that P58 for premium, I think everything below will go down,” he said.
Meanwhile, the National Price Coordinating Council is also looking at declaring that there is an “extraordinary increase” in rice prices, which would allow the Agriculture secretary to proclaim a food security emergency, said Cherryl G. Carbonel, a Department of Trade and Industry director.
“But we’re still working on the resolution,” she told lawmakers.
A food emergency declaration would allow Agriculture Secretary Francisco P. Tiu Laurel, Jr. to release rice stocks held by the National Food Authority (NFA), which would increase the market supply of the staple food in a bid to bring down its retail prices.
Also on Wednesday, NFA Administrator Larry R. Lacson said they are looking to sell aging rice buffer stocks at P33 to P38 [per kilo] to local government units.
“Our current stocks at the NFA total around 700,000 bags of milled rice. Out of those, 300,000 can be considered aging or non-regular stocks,” he told lawmakers. — Kenneth Christiane L. Basilio