Author: DA Press Office

Agriculture Secretary Francisco P. Tiu Laurel Jr. has announced plans to remove brand labels from imported rice, citing concerns that some industry players are manipulating the system to inflate prices and exploit Filipino consumers.

“After conducting a series of market visits, we now have reason to believe that some retailers and traders are intentionally confusing Filipino consumers with branded imports to justify the high prices of rice,” Sec. Tiu Laurel said.

Apart from removing brand names, the DA chief ordered the removal of labels like “premium” and “special” on imported rice, which he believes are being used to justify inflated prices. However, locally-produced rice will be exempted from this rule to protect Filipino farmers and traders.

“Importing rice is not a right but a privilege,” Sec. Tiu Laurel said. “If traders are unwilling to follow our regulations, we will withhold permits for rice importation,” he stressed.

Data gathered from retailers, traders, and importers suggest that a markup of P6 to P8 per kilo from the landed cost of imported rice is sufficient to profitably sustain the operations of all parties involved in the supply chain. For example, if rice is purchased from Vietnam at an all-in cost of P40 per kilo, the consumer price should not exceed P48 per kilo.

Sec. Tiu Laurel is also considering several measures to address rice price volatility, including invoking a food security emergency under the amended Rice Tariffication Law, which would allow the release of buffer stocks from the National Food Authority (NFA) to stabilize prices.

He is exploring the option of allowing government corporations like Food Terminal Inc., to import significant quantities of rice to compete directly with private importers, and also ordered the DA legal division to study whether provisions of the Consumer Price Act could be activated deal with seeming acts of profiteering.

Despite President Ferdinand Marcos Jr.’s reduction of the rice tariff to 15 percent from 35 percent in July, prices of some rice brands have remained stubbornly high, frustrating both the government and consumers.

Secretary Tiu Laurel has also suggested enlisting the Department of Finance, particularly the Bureau of Internal Revenue, to audit the financial records of rice traders to ensure compliance with fair pricing practices as well as the Department of Trade and Industry to assist in monitoring prices of rice in markets and groceries.

Published Date: December 26, 2024