UNNECESSARY MOVE Calling it counterproductive, the Department of Agriculture has ruled out imposing suggested retail prices on farm products, including rice, at the moment, which price surges have hit. —GRIG C. MONTEGRANDE
The Department of Agriculture (DA) rejected on Thursday a proposal to set a suggested retail price (SRP) for rice a few days after an official earlier hinted at the move to tame price surges.
In a statement, the DA said it was not considering the imposition of an SRP on farm products, particularly rice.
“We’re not doing it,” Agriculture Secretary Francisco Tiu Laurel Jr. said. “Prices of rice and other agricultural products in international markets like Thailand and other countries are volatile and fluctuating due to El Niño. Hence, we’re not suggesting to control prices at the moment,” he added.
READ: DA eyes SRP on rice as retail prices still over P50 per kg
According to Laurel, international rice prices are fluctuating as countries try to increase their reserves through importation following concerns about a potential drop in harvest due to an expected intense El Niño episode.
The Philippines is one of the world’s biggest rice importers, making it vulnerable to fluctuations in global prices. Over the past year, it has relied on importation as local production cannot meet local demand.
Over the weekend, DA spokesperson Arnel de Mesa said the department was studying setting an SRP for rice, which was selling for around P50 per kilogram (kg) as of this writing.
But Laurel said this “was just an idea based on available remedies” provided to them under Republic Act No. 7581 or the Price Act.
Voluntary in nature
Under the law, suggested retail prices may be implemented to guide producers, manufacturers, traders, dealers, sellers, retailers, and consumers on pricing basic necessities and prime commodities.
Vendors are not required to follow the SRP prescribed by the government since it is voluntary, although it can help consumers determine if they are being overcharged.
“I’m well aware that setting retail prices, even if just suggested, for particular goods tend to be counterproductive, especially when there is ample supply,” Laurel said.
“In most cases, farmers bear the brunt of a price limit because traders will only lower their purchase prices to keep their margins. Consumers also don’t benefit in such a situation. It could also fuel price speculation and supply hoarding that evolves into another problem altogether,” he added.
Upon the recommendation of the implementing agency, the President may impose a price cap in case of a calamity, emergency, prevalence, or widespread acts of illegal price manipulation or artificial and unreasonable price hikes.
As of Thursday, local regular milled rice per kilogram was sold from P50 to P53, compared to P34 to P40 a year ago, based on the DA’s price monitoring of Metro Manila markets.
On the other hand, local well-milled rice per kg was priced from P49 to P55, higher than P38 to P44 last year.
Imported regular-milled rice was unavailable, but imported well-milled rice ranged from P50 to P58 per kg compared to P40 to P44.
The DA said it was working double time to ensure an ample supply of rice and other agricultural products after a potential prolonged dry spell caused by El Niño. It was also taking steps to mitigate the weather phenomenon’s impact on farm output.