DA bucks reimposition of rice price cap

MANILA, Philippines — The Department of Agriculture (DA) has shut down the possibility of reimposing the rice price cap next month after a farmers’ group asked President Marcos to implement the price ceiling anew to prevent an “artificial rice price crisis” toward the end of the year.

“No, the price cap should really be a short-term one... There are probably other measures that we can already do,” DA Undersecretary for policy, planning and regulations Mercedita Sombilla said in an interview with reporters on the sidelines of the 6th International Rice Congress yesterday.

Farmers’ group Samahang Industriya ng Agrikultura (SINAG) yesterday said that Marcos should reimpose the price ceiling in November “to preempt new attempts to artificially increase the retail price of rice.”

“We are all worried of a possible repeat of the rice price spikes last August where traders tried to justify the increase in rice prices because of the high farmgate prices of palay,” SINAG chairman Rosendo So said in a statement.

“We are also aware that a scenario of increasing rice prices (is) being timed with the fresh proposal to reduce the tariffs on imported rice, corn and pork,” he added.

Instead of imposing a price ceiling, the Federation of Free Farmers (FFF) suggested the government should focus on monitoring stocks, prices, hoarding and price manipulation and providing alternative marketing outlets that will keep other traders “honest.”

India gives Philippines biggest rice export allocation

The Philippines received the highest rice export allocation from India with 295,000 metric tons of non-basmati white rice.

Among the countries importing from India, the Philippines has become its largest rice importer.

“Request made at the leadership level and the positive decision reflects the growing confidence in the bilateral relationship,” the Indian embassy in Manila said in a statement.

Six other countries set to receive the export of around 1.034 million MT of rice are Cameroon (190,000 MT), Malaysia (170,000 MT), Cote d’Ivoire and Republic of Guinea (142,000 MT each), Nepal (95,000 MT) and Seychelles (800 MT).

FFF expressed concern over the price of India’s rice exports.

“In the past, our local importers have not secured rice from India despite significantly lower prices, most probably due to concerns about quality and reliability of supply,” FFF national manager Raul Montemayor said in a statement.

Rice retailers group Grains Retailers Confederation of the Philippines (Grecon) yesterday said that the 295,000 MT of rice from India will help stabilize the supply and prices of rice in the country.

“It’s a good sign especially with the threat of El Niño phenomenon for the first quarter of 2024. There will be no fears of possible rice shortage as 295,000 MT is big. We will ensure food security in the country,” said Grecon national spokesman Orly Manuntag.

India had banned the export of non-basmati white rice – its largest rice export category – in July to ease domestic prices that climbed after rains caused significant crop damage.

The ban further tightened global supply and sent world prices even higher since India supplies around 40 percent of the global rice trade.

President Marcos, concurrently agriculture secretary, said in July that the Philippines may seek a rice supply deal with India.

According to the United States Department of Agriculture (USDA), the Philippines has overtaken China as the world’s top importer of rice.

In its latest “Grain: World Markets and Trade” report, the USDA projected that Philippine rice importation will reach 3.8 million metric tons in marketing year 2023-2024 while China’s imports will drop to 3.5 million MT.

Price ceiling

So yesterday said that the farmgate price of palay has reached P27 per kilo, adding that the spike in the retail price of rice should be expected in November amid the upward trend in the buying price of the staple food.

He told The STAR that the rice price ceiling should return next month.

On Oct. 4, President Marcos lifted Executive Order 39 imposing a P41 and P45 per kilo price ceiling on regular and well-milled rice almost a month after it was implemented on Sept. 5, noting that the retail price of rice has stabilized with the start of the harvest season.

In Isabela, the buying price of palay is now at P27 per kilo, So said.

“As a result, traders go to Pangasinan and the buying price in Pangasinan is almost P26 (per kilo),” he added.

The upward trend in the buying price of palay was due to competition among traders, So noted.

“(Traders competing to secure the palay harvest of farmers) is one of the reasons why the farmgate price of palay in Isabela is high. Traders also go to other provinces to buy palay, causing the buying price of palay to go up,” he said.

“If the farmgate price of palay is increasing, the retail price of rice will also go up. The P27 (per kilo) buying price of palay is equivalent to P43 (per kilo) of rice. If the rice is delivered in Metro Manila, the markup price of wholesalers and retailers could reach P47 per kilo,” he explained.

So confirmed that the buying price of dry palay in Pangasinan and Nueva Ecija is now at P26 per kilo and P21 per kilo for fresh harvest; P27 per kilo for dry palay in Isabela and 23 per kilo for fresh harvest; and P26 per kilo for dry palay in Cagayan and P22 per kilo for fresh harvest.

As for warehouse raids, So said it did not affect the importation of traders, contradicting reports that some importers chose not to import amid fears brought by the recent confiscation of rice stocks.

The buying price of rice in Thailand is now at $580 per metric ton, he added.

Based on the DA’s monitoring, the retail price of local regular milled rice ranged between P41 and P45 per kilo; local well-milled rice, between P48 and P48 per kilo; local premium rice, between P45 and P48 per kilo; and local special rice, between P54 and P62 per kilo.

The retail price of imported regular milled rice was pegged at P43 per kilo; imported well-milled rice, between P45 and P48 per kilo; imported premium rice, between P52 and P58 per kilo; and imported special rice, between P53 and P60 per kilo. — Pia Lee-Brago, Bella Cariaso