By PTV NEWS-DAC

By Dean Aubrey Caratiquet

On Thursday (Dec. 26), Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. 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.

Moreover, he also ordered the removal of labels like “premium” and “special” on imported rice, which he believes are being used to mislead consumers and justify inflated prices. However, this rule excludes locally-produced rice to protect Filipino farmers and traders.

“Importing rice is not a right but a privilege. If traders are unwilling to follow our regulations, we will withhold permits for rice importation,” the agriculture chief declared. 

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 the rice was purchased from Vietnam at an all-in cost of P40 per kilo, the consumer price should not exceed P48 per kilo.

Further measures to reduce rice prices already in the cards

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. 

Moreover, the Agriculture chief is also exploring the option of allowing government corporations like Food Terminal Inc. to import significant quantities of rice to compete directly with private importers.

Likewise, he also ordered the DA’s legal division to study whether provisions of the Consumer Price Act could be activated to deal with seeming acts of profiteering.

Furthermore, the Agriculture chief also suggested enlisting the help of other government agencies in reducing the rigged rice prices.

Chief among them are the Department of Finance and the Bureau of Internal Revenue, which will be tasked with auditing the financial records of rice traders to ensure compliance with fair pricing practices. Similarly, the Department of Trade and Industry will be tapped to assist in monitoring rice prices in markets and groceries. (with report from Clay Pardilla/PTV News)

Published Date: December 27, 2024