By Brian Jules Campued
The Department of Agriculture (DA) is not keen on imposing a suggested retail price (SRP) on agricultural products, particularly rice, Agriculture Secretary Francisco Tiu Laurel Jr. said Thursday, Jan. 11.
“We’re not doing it. 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,” Laurel said.
According to Laurel, international rice prices are fluctuating due to countries trying to increase their rice reserves through importation following concerns of potential drop in harvest due to an expected strong El Niño episode.
The Agriculture secretary maintained that earlier proposals for an SRP were just an idea based on available remedies provided under the Republic Act No. 7581 or the Price Act, which allows the DA to stabilize prices of farm commodities during emergencies.
“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 said.
However, the said provision requires implementing rules and regulations to be first put in place before the department could exercise that power.
“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,” he added.
The agriculture chief also said the agency is building a rice buffer stock amid the effects of an extended El Niño to ensure adequate supply and keep prices stable before the next harvest season commencing in March.
He likewise warned those who may want to exploit the potential shortage of supply that the DA is empowered by law to go after them.
“We will not hesitate to use the powers and remedies at our disposal to ensure that our farmers and consumers are amply protected against those who may want to exploit any supply shortage,” he stressed.
Additionally, Laurel announced Wednesday that he had issued Special Order 18 assigning the technical working group (TWG) to develop the Implementing Rules and Regulations (IRR) for Section 9 of the Price Act, which allows an implementing agency to procure, purchase, import, or stockpile basic or prime commodities.
Based on DA’s recent “Bantay Presyo” released on Thursday, the retail prices of local commercial rice range from P49 to P66 while imported rice range from P50 to P65.
Local well-milled rice is the least expensive, selling between P49 and P55 while imported well-milled rice costs about P50 to P58.
On the other hand, imported regular milled rice remains unavailable in markets, the DA said. – cf
