By Brian Campued
The Department of Agriculture (DA) is set to release a memorandum for the implementation of a P53 per kilo suggested retail price (SRP) on local rice “soon” following consultations with stakeholders.
In a statement Tuesday, Agriculture Secretary Francisco Tiu Laurel Jr. said that the DA reached an agreement with rice industry stakeholders for the RSP on local rice to strike a balance between farmers’ profits and consumers’ budgets.
“I’ve consulted rice millers and industry groups, and P53 per kilo is acceptable,” Laurel said, adding that retailers may still sell lower, allowing others in the value chain to earn reasonable margins.
Laurel, however, clarified that the SRP on local rice is “not a price ceiling.”
“It’s just a guide for consumers on fair local rice prices,” the DA chief said.
This follows President Ferdinand R. Marcos Jr.’s recent approval of a P50 per kilogram price cap on imported rice with 5% broken content, which took effect on May 13 and will last for 30 days.
Laurel said full enforcement of the P50 price cap will begin next week, giving retailers and consumers time to adjust.
Following an inspection of rice prices in Paco Public Market, the Agriculture chief assured rice retailers and traders that the price ceiling was carefully calibrated using landed import costs of P37-P38 per kilo, leaving enough room for logistics, shrinkage, and reasonable markups from importer to trader to retailer.
“At a landed cost of around P37 to P38 per kilo, there is still a workable margin across the value chain… We are ensuring consumers get affordable rice while traders and retailers remain viable. The goal is balance, not disruption,” he said.
“For the entire value chain—from importer to trader to retailer—the markup should only be around P10. If landed cost is P38, retail should be about P48. We set it at P50 to allow for hidden costs like logistics and possible spoilage. At P50, everyone in the chain should still earn,” he added.
To ensure proper implementation and cooperation among rice retailers and stakeholders, Laurel said the department will likewise deploy field teams around markets across the country.
“The DA will be going around markets across the Philippines daily and weekly… Retailers can approach our teams directly. We are distributing pamphlets with implementation guidelines and contact details so concerns can be addressed quickly. We want a smooth implementation,” he said.
The price cap forms part of government efforts to cushion the impact of rising fuel costs caused by the conflict in the Middle East on transport and logistics expenses, resulting in higher retail prices for basic commodities, including rice.
The DA said the intervention is meant to stabilize retail rice prices while maintaining a functioning supply chain.
-av
