THE Department of Agriculture (DA) is looking into the possible imposition of a price ceiling on imported rice as rising global oil prices threaten to push up shipping and farm input costs.
In a statement, Agriculture Secretary Francisco Tiu Laurel Jr. said the National Government is considering a price cap of about P50 per kilo on imported rice to stabilize retail prices while protecting farmgate prices for palay.
Laurel said the department is currently reviewing the legal basis for imposing such a ceiling. If permissible, the proposal will go to President Ferdinand Marcos Jr. as part of a package to cushion the impact of the global oil shock.
For locally produced rice, Laurel said the DA is unlikely to impose a ceiling now, as it could negatively impact farmers benefiting from improved palay prices during the harvest.
“We may impose a price cap on local rice after the harvest to avoid profiteering,” he said.
The agriculture chief said the government wants to balance consumer protection with safeguarding farmers’ income.
The DA said tension in the Middle East affects commodity markets, specifically oil, which has driven up the cost of fertilizer, fuel, and freight.
“The impact is already showing in rice imports. Freight rates have doubled, pushing the landed cost of the widely imported DT8 variety close to $500 per metric ton,” Laurel said.
Despite rising costs, Laurel said retail prices reaching P60 to P65 per kilo in some markets border on profiteering.
To stabilize prices, the DA directed government-run firms, including Food Terminal Inc. (FTI) and Planters Products Inc. (PPI), to sell rice at lower prices.
FTI sells rice at P45 per kilo, while PPI offers rice at P48 per kilo.
The initiative started in Metro Manila and may expand to Southern Luzon and the Cebu City Government jurisdiction, along with other major urban centers.
The DA said these measures aim to keep rice affordable while the National Government studies policy responses to volatile oil prices. (TPM/SunStar Philippines)