MANILA, Philippines — Former agriculture secretary Leonardo Montemayor yesterday said that the government should impose a maximum suggested imported rice profit instead of maximum suggested retail price, amid the impending implementation of a P58 per kilo maximum SRP on outsourced grains beginning Jan. 20.
“Why not a maximum suggested imported rice profit? In trying to bring down rice prices, why is the government apparently focusing on the retailers’ end of the marketing chain – instead of the importers-wholesalers component?” Montemayor asked.
On Friday, Agriculture Secretary Francisco Tiu Laurel Jr. announced that the maximum SRP of P58 per kilo on imported rice will take effect on Jan. 20, after Executive Order 62 – which allowed a 15 percent tariff on the outsourced staple – failed to bring down the cost of rice.
Montemayor said that the reduction of tariff from 35 to 15 percent last June 20 was to encourage importers to import more rice and pass on the P5 to P7 per kilo in lower duties to local consumers.
“Both the Philippine Statistics Authority and the National Economic and Development Authority have determined that EO 62 has not met its objectives. Meanwhile, the government has allowed the less than 20 big players, reportedly cornering the bulk of imports, to pocket around P13.5 billion in tariff savings, which are tantamount to windfall profits,” the ex-Department of Agriculture chief said.
According to Montemayor, while the maximum SRP of P58 per kilo aims to protect consumers, it only targets retailers.
Imported rice has been flooding the country, as importations reached an “all-time high” of 4.684 million metric tons in 2024.
The retail price of imported rice remained high despite at least six months implementation of EO 62.