MANILA, Philippines — A rice price cap could be imposed if prevailing market prices do not go down, according to the Department of Agriculture.
The DA said it is studying the possibility of a rice price ceiling amid next week’s implementation of the maximum suggested retail price (MSRP) on the staple.
Prevailing rice market prices seem to be “unreasonable” as they remain at the same level despite the landed cost of imported rice declining by as much as P8 per kilo, Agriculture Undersecretary Asis Perez said yesterday at the House quinta committee hearing.
Perez attributed the lower landed cost of rice to easing of world market prices and the tariff cut.
Under the Price Act, the DA may recommend a price ceiling if prevailing market prices have become “excessive” or “unreasonable.”
The DA will implement an MSRP of P58 per kilo on imported five-percent broken rice starting Jan. 20.
If the price of imported broken rice – considered premium grade – goes down, other quality rice prices would follow suit, Perez said.
“Imported five-percent broken rice should not exceed P58 per kilo. For rice with a higher percentage of broken grains, the price should be much lower,” Agriculture Secretary Francisco Tiu Laurel Jr. said earlier.
The MSRP would be effective in bringing down rice prices due to competition, Philippine Amalgamated Supermarkets Association executive director Steven Cua said.
‘Unrealistic MSRP’
Setting an MSRP of P58 per kilo for imported broken rice is “unrealistic” and a “disservice to consumers,” according to House Deputy Majority Leader and Iloilo 1st District Rep. Janette Garin.
“Why is it that the DA has an MSRP of P58? From what planet does it come from?” she asked yesterday.
The MSRP is too high, Albay 2nd District Rep. Joey Salceda said.
Garin recalled that in Bulacan, Laurel announced that rice prices will be brought down to between P45 and P49.
Sultan Kudarat 2nd District Rep. Horacio Suansing agreed with Garin, saying that rice millers, importers and traders had agreed to lower rice prices. – Jose Rodel Clapano