DA, DTI to set standard retail price for basic agricultural goods

The Department of Agriculture (DA) and the Department of Trade and Industry have decided to set a standard retail price (SRP) for basic agricultural goods to protect consumers from alleged “profiteering” by some players in the industry.

Prices of basic commodities like rice, vegetable, fish, egg, poultry, livestock, and sugar have been increasing recently. Agriculture Secretary Emmanuel Piñol said traders attribute these increases to rising oil prices and the implementation of the administration’s new tax program.

But a meeting with the industry’s stakeholders revealed that while retail prices are increasing, farm-gate prices for the said commodities remained stable. This reflects a  “flaw in the supply chain,” according to the DA chief.

“That’s the reason why we called this meeting… We would like to determine what triggered these increments. And this early, it’s all about finding a scapegoat to increase their profits,” Piñol said.

“There’s really a flaw in the supply chain between the producers and the consumers…Traders control the buying price and selling price [of goods],” he added.

Piñol also clarified that the rise in prices is not due to the implementation of the Tax Reform for Acceleration and Inclusion (TRAIN) law but rather due to speculations of shortage.

“There is really no shortage…The movement of the price in the market is more likely caused by speculation,” the secretary said.

The idea of setting an SRP for basic agricultural goods was supported by different sectors. A technical working group was formed during the meeting to study the range of prices in the market.

Piñol said the DA would identify all the factors that would determine the sale price, including the supposed effect of the TRAIN law, and the cost of production and the transportation of goods, among others. /ee