MANILA, Philippines — The Department of Agriculture (DA) will implement a maximum suggested retail price (SRP) on imported rice, Agriculture Secretary Francisco Tiu Laurel Jr. announced yesterday.
Rice retail price remains high at P64 per kilo despite the implementation of Executive Order 62, which lowered the tariff on imported grains to 15 percent from the previous 35 percent.
In a chance interview after the DA’s flag ceremony, Tiu Laurel maintained that if the retail price of imported rice reaches P60 per kilo, it is already considered profiteering.
“This week, we will be meeting some of the retailers and importers. It is clear to me that there should be no P60 per kilo of imported rice in the market and in my opinion, it is already considered profiteering if the imported rice is already P60,” Tiu Laurel said.
Based on the DA’s latest monitoring, the retail price of imported special rice has reached as high as P64 per kilo; imported premium rice, as high as P60 per kilo; imported well-milled rice, as high as P54 per kilo and imported regular milled rice, as high as P48 per kilo.
“We are now trying to establish what the maximum suggested retail price should be. We will be coming up with the maximum retail price very soon,” Tiu Laurel said.
“Before the end of January, (hopefully,) we can release the maximum SRP. It is not a suggestion; we are saying that this should be the maximum price, but it is not a price cap,” the DA chief said.
The source of origin, brokenness and type should be included in the labeling of imported rice being sold in the markets, according to a ranking DA official.
At a press conference yesterday, DA Assistant Secretary and spokesman Arnel de Mesa stressed that the move is part of the efforts of Tiu Laurel to standardize the labeling on imported rice.
“First, the secretary believed that there is abuse in the retail price of rice. Again, we’re talking only of the imported rice,” De Mesa said.
Tiu Laurel said retailers and traders are intentionally confusing consumers with premium rice imports to justify the high prices of the grains.
“What should be included in the labeling of rice are first, its source (country); (second), the percent of brokenness, if it’s five percent, 25 percent and (third), the type of rice. These are the three descriptions which should be included (in the price tag),” De Mesa said.
“The rice should no longer be categorized as premium or special,” he added.
Tiu Laurel has said that he wants to standardize the labeling of rice so that consumers would not be shortchanged by unscrupulous traders.
At the same time, De Mesa said the retail price of imported rice should not exceed P60 per kilo after Tiu Laurel announced the imposition of maximum SRP.
“If the landed cost (of imported rice) is P43 (per kilo) for premium and special rice, the additional cost should only be from P6 to P8, so the retail price of rice should only be P51, P52. So there should be no P60. That’s too much,” De Mesa added.
He said the DA is finalizing the guidelines on the maximum SRP.
“The next step is to coordinate with the Department of Trade and Industry, Department of Finance and the Philippine National Police on the possible sanctions (against violators),” he said.
Tomato prices spike
Meanwhile, the spike in the retail price of tomatoes can be attributed to the shortage in supply amid the successive tropical cyclones that hit the country.
At a press briefing yesterday, De Mesa said there was a 45-percent reduction in the production of tomatoes during the last quarter of 2024.
“According to the (DA’s office of) high value crops, a series of (tropical cyclones) last year caused extensive damage to the crops in their vegetative and reproductive stage, particularly in regions or areas producing these solanaceous family crops like tomatoes, bell pepper and chili pepper, particularly in Regions 2, 5 and 4-A. These resulted in significant supply shortages in the mentioned crops,” De Mesa added.
Based on the DA’s latest monitoring in Metro Manila markets, the retail price of tomato has increased to P360 per kilo or P20 per piece for a medium-sized tomato.
One kilo of tomato is more expensive compared to a kilo of chicken priced at P240, according to the agency.
“There was a significant reduction in the production of tomatoes, by 45 percent, going into the fourth quarter last year,” De Mesa said.
He added the DA expects the retail price of tomatoes to start to go down either at the end of January or in the first week of February.
“The production may resume this month until February, the start of the dry season and then expectedly, the prices will be back to normal during this period, end of January or early February,” he said.
There is no shortage in the production of siling labuyo or chili pepper, but there is also a spike in the retail price, according to the DA official.
“For siling labuyo and bell pepper, (damage to production is) not big, but the retail price really went up,” he said.
Tropical cyclones Kristine, Leon, Marce, Nika, Ofel and Pepito, which affected the country successively in four weeks late last year, resulted in extensive damage to the farm sector.
The retail price of siling labuyo or wild chili further increased to P1,000 per kilo after reaching P900 per kilo a few days ago.
Prices of highland vegetables have also increased as carrots reached P300 per kilo; Baguio beans, P200; potato, P220; pechay Baguio, P80; chayote, P80; cauliflower, P300; bell pepper, P900; broccoli, P400 and cabbage, P140.
Local red onions are sold at P170 per kilo; local white onions, P120; imported white onions, P180; imported garlic, P210 and ginger, up to P260 per kilo.
P2.89 billion released to rice farmers
At least P2.89 billion had been released to 65,000 rice farmers in the first six years of the implementation of the Rice Competitiveness Enhancement Fund (RCEF), the Land Bank of the Philippines (Landbank) said yesterday.
At the same time, Landbank welcomed the passage of Republic Act 11954, allowing the extension of the RCEF until 2031, as among the amendments to the Rice Tariffication Law.
“Landbank fully supports the RCEF extension toward strengthening our collective efforts to empowering Filipino rice farmers and boosting agricultural competitiveness. This significant step will bolster food security and sustainability, and the bank stands ready to continue its active role in supporting this initiative,” Landbank president and chief executive officer Lynette Ortiz said.
Ortiz added that the loans under the expanded rice credit assistance of the RCEF have supported rice production and post-harvest activities from 2019 to 2024.
The extension of the RCEF for another seven years will accelerate modernization in the rice sector and strengthen the resilience and productivity of Filipino rice farmers, according to the Landbank chief.
“As one of the implementers of the RCEF in partnership with the Department of Agriculture, Landbank delivers credit assistance at low-interest rates with simplified processes to ensure accessibility for individual rice farmers and cooperatives in major rice producing provinces,” she said.
Ortiz noted that the loans have benefitted 17,767 individual rice farmers and 270 cooperatives with more than 47,100 member-beneficiaries, which were channeled for palay production, milling and trading, re-lending and the acquisition of farm machineries.
She added that 98 percent of Landbank’s direct borrowers under the program are individual rice farmers.
As of October last year, Landbank had extended outstanding loans amounting to P769.68 billion in support of agriculture, fisheries and rural development under RA 11901 or the Agriculture, Fisheries and Rural Development Financing Enhancement Act of 2022, according to Ortiz.
She said Landbank has also assisted a total of 3.93 million small farmers and fishers nationwide through loans and various support interventions.
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