The Department of Agriculture (DA) has announced that starting January 20, a maximum suggested retail price (MSRP) of PHP58 per kilogram for imported rice will be enforced in Metro Manila. This decision was shared by DA Secretary Francisco Tiu Laurel Jr. during a market inspection alongside Trade Secretary Ma. Cristina Roque at the Murphy Public Market in Quezon City.
Secretary Tiu Laurel expressed optimism about market compliance with the new MSRP, emphasizing the importance of cooperation to support consumers while protecting farmers’ interests. He stated that the price cap would be mandatory for all retailers and that discussions with supermarkets and convenience stores would follow to ensure full adherence.
The MSRP allows for a profit margin of approximately PHP10 per kilogram for importers and retailers, calculated based on the highest international market price for high-quality imported rice from Vietnam, which has a 5% breakage rate. The DA’s pricing model takes into account the world market price, a PHP59 to the dollar exchange rate, and a 15% tariff, resulting in a landed cost of PHP48 per kilogram.
Tiu Laurel noted that if global rice prices continue to decline, the MSRP could be adjusted downwards in the future. During the market visit, it was observed that some branded imported rice was still being sold at higher prices, which Tiu Laurel described as profiteering. He stressed the need to eliminate special and premium brands to curb price gouging.
To enhance transparency, Tiu Laurel proposed that all imported rice sacks should clearly indicate the country of origin, type, percentage of broken grains, and the names of the importer or miller. This information should also be visible on retail labels for consumers.
Should there be challenges in enforcing the MSRP, Tiu Laurel mentioned the possibility of implementing price ceilings, which would make non-compliance a legal issue. He suggested that if necessary, they would recommend price ceilings to President Ferdinand R. Marcos Jr. for declaration.
Tiu Laurel reassured that the MSRP aims to strike a balance between affordability for consumers and fair income for farmers, avoiding a drastic price drop that could harm agricultural producers. The DA and DTI are planning to extend the MSRP implementation to other key regions such as Cebu, Cagayan de Oro, Davao, Zamboanga, Iloilo, Negros Island, and Batangas.