Rice retailers charging ₱60 per kilo for imported rice are engaging in profiteering which is a violation of consumer protection laws, Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. said on Monday, Jan. 6.
“Malinaw sa akin na dapat wala nang ₱60 rice na imported sa merkado (It is clear to me that there should no longer be ₱60 imported rice in the market),” he said after the flag raising ceremony at DA Central Office in Quezon City.
“Ang ₱60 na imported rice is already profiteering, in my opinion (The ₱60 imported rice is already profiteering, in my opinion).”
Earlier, Laurel stated that after conducting several market visits, they found sufficient evidence to suggest that some retailers and traders were deliberately misleading Filipino consumers by using branded imports to artificially inflate rice prices.
As part of the solution, he ordered removing brand labels from imported rice.
The DA chief also directed the removal of labels such as “premium” and “special” from imported rice, saying these are being misused to inflate prices.
Data from the agriculture department indicates that a reasonable markup for imported rice is ₱6 to ₱8 per kilo over its landed cost to ensure sustainable profits. For example, rice imported from Vietnam at an all-in cost of ₱40 per kilo should retail for no more than ₱48 per kilo.
To address fluctuating rice prices, Laurel said he is exploring the possibility of declaring a food security emergency under the amended Rice Tariffication Law. This move would allow the National Food Authority (NFA) to release buffer stocks and stabilize market prices.
Maximum suggested retail price
In addition, the DA chief revealed that the agency will soon release a “maximum suggested retail price system.”
“We are now trying to establish ano ba ang dapat na maximum suggested retail price (We are now working to determine what the appropriate maximum suggested retail price should be),” said Laurel.
“We will be coming up with the maximum suggested retail price system very soon. Before the end of January, sana malabas ko na (I hope to release it before the end of January),” he added.
To finalize the MSRP, Laurel said the DA will convene with the Department of Trade and Industry (DTI), the Bureau of Plant Industry (BPI), and the Bureau of Internal Revenue (BIR).
Affordable rice varieties
Laurel also called on rice importers to help lower rice prices by prioritizing imports of more affordable varieties, particularly those with 25 percent broken grain content, as part of efforts to address food inflation.
“By importing more rice with 25 percent broken grains, we can significantly increase the availability of affordable rice options for Filipino consumers,” Laurel said during a meeting with rice importers to discuss strategies for stabilizing prices on Friday, Jan. 3.
The DA chief emphasized the role of the private sector in ensuring the success of the Marcos administration’s Kadiwa ng Pangulo Rice-for-All program, which has been offering well-milled rice at ₱40 and ₱45 per kilo through rolling stores, kiosks, and centers in Metro Manila and Bulacan since Dec. 21, 2024.
“We remain hopeful that more like-minded businesses will join President Ferdinand Marcos Jr.’s administration in addressing food inflation and ensuring affordability for Filipino consumers,” he added.
Currently, 26 Kadiwa rolling stores and kiosks are operational in Metro Manila, with plans to expand to all major public markets in the National Capital Region.
The DA added that 40 Kadiwa Centers are also providing basic necessities and low-priced rice to vulnerable sectors.
Meanwhile, Laurel lauded Police Major General Edgar Alan Okubo, acting chief of the PNP Directorial Staff, for securing the smooth operations of these initiatives, which have brought affordable rice closer to the public.
While focusing on lowering consumer prices, Laurel reiterated the agency’s commitment to supporting Filipino rice farmers.
“The DA is working closely with millers and importers to bring more affordable rice options, but we remain dedicated to helping Filipino rice farmers increase their productivity and maintain their profitability,” he said.
RCEF extension
Meanwhile, state-run Landbank has distributed ₱2.89 billion in loans to over 65,000 rice farmers and cooperatives nationwide under the Rice Competitiveness Enhancement Fund (RCEF) from 2019 to 2024.
The bank’s announcement follows the recent passage of Republic Act (RA) No. 11954, which extends RCEF for another seven years. The amendment to the Rice Tariffication Law aims to sustain initiatives that strengthen the productivity and resilience of Filipino rice farmers amid challenges in the agricultural sector.
According to Landbank, the loans were channeled through the Expanded Rice Credit Assistance under RCEF (ERCA-RCEF) and supported key activities such as palay production, post-harvest processing, milling, trading, and the acquisition of farm equipment.
It noted that the program benefited 17,767 individual farmers and 270 cooperatives with more than 47,100 members, with 98 percent of direct borrowers being individual rice farmers.
“Landbank fully supports the RCEF extension as part of our commitment to empowering Filipino rice farmers and boosting agricultural competitiveness,” Landbank President and CEO Lynette V. Ortiz said in a statement.
“We are prepared to sustain our efforts to enhance food security and ensure the sustainability of the rice sector.”
As the largest credit provider to the agriculture sector, Landbank reported that as of October 2024, it has extended ₱769.68 billion in loans to agriculture, fisheries, and rural development under Republic Act No. 11901 or the Agriculture, Fisheries, and Rural Development Financing Enhancement Act of 2022. This represents 55.5 percent of its ₱1.387 trillion gross loan portfolio.
The bank said it has also provided financial support to 3.93 million small farmers and fishers nationwide through loans and other interventions aimed at driving countryside development.
The RCEF extension allows Landbank to sustain the delivery of low-interest credit assistance to individual farmers and cooperatives in rice-producing provinces, helping address challenges in the rice supply chain and promote modernization in the sector.