Group says maximum SRP on rice to benefit traders, not farmers


 

Excess tax from RLL can provide cash assistance to rice farmers

The Kilusang Magbubukid ng Pilipinas (KMP) has slammed the government’s move to implement a maximum suggested retail price (MSRP) of ₱58 per kilo for imported rice.

In a statement, the KMP said the implementation of the maximum suggested retial price is a “band-aid solution” by the Department of Agriculture (DA).

The group said the measure fails to address the root causes of high rice and food prices, including the lack of support for local farmers, neoliberal agricultural policies, the importation of cheap rice that undermines domestic production, and the absence of genuine rural industrialization.

“Malinaw na pakitang tao lang ang MSRP. Walang matibay na mekanismo ang DA para tiyaking susunod ang mga trader at rice retailer, habang ang mga magsasaka ay patuloy na nalulugi dahil sa mababang kita mula sa kanilang ani (The MSRP is clearly just for show. The DA has no solid mechanism to ensure that traders and rice retailers will comply, while farmers continue to suffer losses due to low income from their harvest),” KMP Chairperson Danilo Ramos said in a statement.

“Sa ganitong polisiya, lalong naghihirap ang magsasaka at konsyumer habang nakikinabang ang kartel ng bigas at malalaking importer (With this kind of policy, farmers and consumers are further burdened while rice cartels and large importers benefit),” he went on.

The progressive group stressed that ₱58 per kilo remains unaffordable for ordinary Filipinos, especially with soaring prices of goods and stagnant wages.

The KMP noted that in September 2023, the Department of Agriculture (DA) implemented a price ceiling on local rice, setting it at ₱41 per kilo for regular milled rice and ₱45 per kilo for well-milled rice. Despite this, prices continued to rise, breaching ₱50 per kilo in many areas.

“Sa halip na kung anu-anong trial and error na hakbang na pabor pa rin sa mga malalaking rice traders ang ginagawa ng DA, dapat nitong tutukan ang pagpapaunlad ng lokal na produksyon ng palay—kasama ang pagpapababa ng gastos sa produksyon, pagbibigay ng subsidyo, at pagtataas ng farmgate price para sa magsasaka (Instead of implementing trial-and-error measures that still favor large rice traders, the DA should focus on developing local rice production—this includes reducing production costs, providing subsidies, and increasing the farmgate price for farmers),” said Ramos.

The farmers’ group called on the public to hold the DA and the Marcos administration accountable for their failure to address rising food prices and their continued neglect of the agriculture sector.

On Friday, Jan. 10,  Agriculture Secretary Francisco Tiu Laurel Jr. said the D is set to implement an MSRP of ₱58 per kilo for imported rice starting Jan. 20.

“This MSRP aims to strike a delicate balance between business sustainability and the welfare of consumers and farmers. We must ensure the price of rice is fair and affordable even as we make sure that the rice industry remains profitable. We cannot allow the greed of a few to jeopardize the well-being of an entire nation,” Laurel said.

The DA clarified that the new MSRP will initially cover Metro Manila and will be reviewed monthly to reflect market conditions, including changes in global rice prices. “We think that if the current direction of global prices holds, the MSRP will be lower after the review,” he added.

However, Laurel admitted that the DA has not yet established specific sanctions for rice retailers who fail to adhere to the ₱58 MSRP.

“Wala pang sanction. Per the meeting yesterday, maximum suggested tayo. Ang sinasabi namin sa publiko, ito lang ang dapat na maximum na presyo niyan (There are no sanctions yet. Per the meeting yesterday, we are only implementing a maximum suggested price. What we are telling the public is that this should be the maximum price),” he said in an interview.

Laurel also stated that if the rice supply situation deteriorates, the Department of Trade and Industry (DTI) and the DA would recommend to President Marcos Jr. the imposition of mandatory price ceilings.