The Department of Agriculture (DA) will be conducting an aggressive campaign against rice pricing manipulation following reports of alleged profiteering by some traders and retailers at the expense of Filipino consumers.
In a statement on Thursday, Dec. 26, DA Secretary Francisco Tiu Laurel Jr. said they have sufficient reasons to believe that some retailers and traders were intentionally misleading Filipino consumers through the use of branded imports to inflate rice prices after conducting several market visits.
Part of the solution, he said, is the removal of brand labels on imported rice.
He also directed the removal of labels such as “premium” and “special” from imported rice, saying these are being misused to inflate prices.
The DA noted that locally-produced rice will be exempt from the directive to protect Filipino farmers and their businesses.
“Importing rice is not a right but a privilege,” Laurel stressed.
“If traders are unwilling to follow our regulations, we will withhold permits for rice importation.”
Per the DA, data from the rice supply chain indicates that a ₱6 to ₱8 markup per kilo from the landed cost of imported rice is sufficient for sustainable profit. For instance, rice imported from Vietnam at an all-in cost of ₱40 per kilo should retail at no more than ₱48 per kilo.
To address rice price volatility, Laurel said he is exploring invoking a food security emergency under the amended Rice Tariffication Law, which would enable the release of National Food Authority (NFA) buffer stocks to stabilize market prices.
The DA is also considering allowing government corporations, such as Food Terminal Inc., to directly import large volumes of rice to compete with private importers.
Also, the agency’s legal division has been tasked to assess whether the Consumer Price Act could be applied to counter acts of profiteering in the rice industry.
Despite President Marcos’ move to reduce the rice tariff from 35 percent to 15 percent in July, prices of certain rice brands remain significantly high, frustrating both consumers and the government.
Laurel said he is also looking into enlisting the Department of Finance, particularly the Bureau of Internal Revenue, to audit the financial records of rice traders to ensure compliance with fair pricing practices. The Department of Trade and Industry (DTI) has likewise been tapped to monitor rice prices in markets and groceries.