Department of Agriculture (DA) Secretary Francisco Tiu Laurel is optimistic that the planned rollout of affordable rice, with prices ranging from P29 to P45 per kilo, in groceries and convenience stores starting Feb. 15 will help influence the market “to be more reasonable.”

Laurel told reporters on Thursday, Jan. 23, that his recent dialogue with the country’s major retail firms yielded “positive results.”

“Napaliwanagan naman sila (They were made to understand), it’s technically business as usual. Everybody just has to help out,” he said.  

The DA chief said the retail chains are set to meet with officials of the Food Terminal Inc. (FTI), a state-owned corporation tasked to handle the supply of rice through participating stores.

Once the details are finalized, Laurel said he will oversee another meeting, with the program expected to launch by mid-February or, at the latest, March 1.

The DA had earlier said this program would be piloted in Metro Manila, wherein rice prices were monitored to be high.

Laurel, however, clarified that the availability of the affordable rice will rely on the decision of retail stores.

“Depende na sa kanila kung saang reach eh. Ang usapan naman hindi naman lahat ng stores lalagyan [ng bigas] kasi there’s limitation on space eh,” he added. (It depends on them where they'll focus on. The agreement is that not all stores will be provided with rice because there's a limitation on space.)

This initiative shall be composed of the P29-per-kilo rice, which will only be available for the country’s vulnerable sectors, as well as the DA’s Rice-for-All (RFA) program.

Various rice grades are offered under the RFA, including RFA5 or the 5 percent broken rice priced at P45-per-kilo; RFA 25 or the 25 percent broken at P38; and RFA 100 or the 100 percent broken at P36.

The agriculture secretary said retail stores, with enough space to install kiosks, will sell rice in sacks with a takal (measuring cup) to boot.

For stores with limited space, the rice shall be sold in two-kilo bags. Since this will be packaged, Laurel said consumers may see an additional P1-per-kilo.

“There’s a chance that it could be a little bit more, but we’re trying to keep it at the bar,” he added.

Food emergency declaration looms 

The DA chief also told reporters that the target date for the implementation of a food security emergency for rice is Feb. 1, with its guidelines set to be released before the end of the month.

Initially, the agency said it was expecting to declare the emergency last Wednesday. 

However, this has since been delayed as the National Price Coordinating Council’s (NPCC) approved resolution is still making the rounds within the DA.

“Approved na ‘yung principle technically, it’s the fine print eh (It’s approved in principle, technically, it's just the fine print now),” said Laurel.

The NPCC, led by Trade Secretary Ma. Cristina Roque, recently issued a resolution urging the DA to declare a food security emergency as rice prices remain high.

Under this, the National Food Authority (NFA) will be allowed to release buffer stock rice to stabilize local prices.

The NFA currently holds 300,000 metric tons of rice in buffer stocks.

Laurel, also the chairperson of the NFA Council, said their intention is to “flush out” the stocks within six months.

The plan for the disbursement is to release the stocks in areas with close proximity to the warehouses for minimal freight cost.

Price cap on imported rice

The maximum suggested retail price (MSRP) for imported rice, currently set at P58-per-kilo, will gradually decrease with a potential to go as low as P49 in March if global prices remain stable, according to Laurel.

The DA implemented the MSRP on Monday, Jan. 20, to ensure that rice remains affordable for consumers while also supporting the profitability of the rice industry.

Rice prices in the country were monitored to remain high despite the recent drop in world prices and the tariff cut ordered by President Ferdinand “Bongbong” Marcos Jr last year.

Starting Feb. 5, Laurel said the MSRP on imported rice will be brought down to P55. By Feb. 15, this will be lowered to P52.

“By March 1, hopefully, we will break P50 per kilo, with the MSRP at P49, as long as world prices remain as they are today—a maximum landed cost of $530 to $550 per metric ton for 5 percent broken rice,” he said in an interview on Friday.

The DA chief explained that announcing these plans early will give industry players a window for an “orderly transition.”

“This would allow them to liquidate higher-priced stocks and renegotiate contracts with suppliers,” he said.

Laurel said the Department of Trade and Industry (DTI) is currently finalizing the guidelines for rice labeling. Once this is released to the public, the DA shall implement the MSRP for each type of rice.

Japanese black rice, red rice, basmati, imported malagkit (glutinous rice), and locally produced rice are exempted from the MSRP.

The agriculture secretary said stakeholders in the rice industry have been calling for a more immediate and substantial reduction. However, he insisted on having a slow rollout of the MSRP to avoid destabilizing the industry.

"When we declared the MSRP at P58, a lot of people have criticized me as someone living in another planet. But the truth is we have a plan,” said Laurel

“You cannot just shock the market…a lot of people will go out of business, and many will resist our efforts, and that is what we are trying to avoid,” he stressed.

According to Laurel, imported rice currently being sold in public markets was purchased at around $700 per metric ton.

Citing data from the Bureau of Customs (BOC), he pointed out that the price of 5 percent broken rice from Asian exporters ranges from $413 to $472 per metric ton (MT).

Vietnam, in particular, is offering the lowest price at $413. The Southeast Asian country has quoted the 25 percent broken variety at a price of $387 per MT.

The DA has been closely monitoring public markets, particularly in Metro Manila, to examine their compliance with the MSRP. 

It warned that the price cap would be strictly enforced, with potential violations, once the official guidelines are released in February. 

Rising prices of pork

The DA is also currently assessing the rising prices of pork in local markets to determine whether profiteering within the value chain is a contributing factor.

Laurel noted that pork appears to be dealing with the same issue that led to high prices in rice.

“But of course, we’re already computing the value chain like we did in rice. And to see kung paano mate-temper ito (how this can be tempered),” Laurel said.

Essentially, the value chain is the range of activities done to bring a product through different phases of production into the consumer’s plate.

As of Wednesday, prices of pork belly in Metro Manila ranged from P360 to P380, while pork kasim (ham) was being sold at P340 to P400.

On the other hand, the frozen pork variety is priced at P230 to P280 for kasim and P270 to P350 for liempo (belly).

Laurel said he has been closely monitoring these prices for the last two weeks. 

“Ang farmgate ngayon is only P220 to 240. So, there seems to be a similar problem sa rice eh,” he explained. (The farmgate price now is only P220 to 240, so there seems to be a similar problem with rice.)

The agriculture secretary said fair profit margin should limit retail prices of live pig to P300-P320 per kilo. 

However, he is still uncertain on whether the high prices of pork are a consequence of potential profiteering in the industry.

“Give me two weeks, then I will tell you if mayroon man o hindi (there is or there is not),” he told the press.

The DA had earlier claimed that the surge in pork prices is caused by the impact of African Swine Fever (ASF) and the huge demand for the commodity during the holiday season last year.

It is projected that prices will fall by February as hog raisers recover their livestock numbers.

Laurel was mum when asked if the agency is considering the implementation of a maximum suggested retail price (MSRP) on pork.

The DA had earlier issued MSRP on imported rice, set at P58, to ensure that rice remains profitable for consumers.

Agri smuggling

On Friday, Laurel expressed his concerns over the alleged agricultural smuggling during his monitoring visit to the Pasay City public market.

The DA chief identified vegetables such as onion sticks, Chinese yam, large broccoli, and pepper as potentially smuggled goods.

He said such items have no Sanitary and Phytosanitary Import Clearances (SPSICs), which puts into question if these are safe for consumption.

“I don’t recall the Bureau of Plant Industry issuing SPSICs for these vegetables. This strongly indicates smuggling,” he continued.

With this, Laurel is urging the DA and related agencies to investigate and possibly even pursue legal action against the perpetrators.

Department of Trade and Industry Assistant Secretary Agaton Uvero, who was also present during the market visit, emphasized the need for the Bureau of Customs (BOC) to issue seizure orders for smuggled goods. 

He said consumers must be wary of health risks linked to unregulated imports, noting that these could contain harmful substances like pesticides and heavy metals.