The Department of Agriculture is weighing a price ceiling on imported rice as global tensions push up shipping and farm input costs, raising concerns about profiteering in the domestic grain market.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the government is studying a cap of about P50 per kilo on imported rice, a level he said would keep retail prices in check without dragging down farmgate prices for palay.
“We are studying the imposition of a price cap on imported rice, possibly P50 per kilo,” Tiu Laurel said.
He said the DA is now looking at the legality of imposing a price ceiling at this time and, if legally permissible, will be recommended to President Ferdinand Marcos Jr. as part of package of actions to deal with impact of the latest oil shock.
A similar ceiling on locally produced rice is unlikely for now. The DA chief warned that premature controls could trigger a price collapse just as Filipino farmers are enjoying improved palay prices during the current harvest cycle.
“We may impose a price cap on local rice after the harvest to avoid profiteering,” he said.
The government’s caution comes as geopolitical tensions ripple through global commodity markets. Concerns over Iran’s moves to control tanker traffic through the Strait of Hormuz amid its conflict with the United States and Israel have driven oil prices higher, pushing up fertilizer, fuel and freight costs.
The impact is already showing in rice imports. Freight rates have doubled, pushing the landed cost of the widely imported DT8 variety close to $500 per metric ton, according to the DA. Despite the higher costs,
Tiu Laurel said retail prices of P60 to P65 per kilo being reported in some markets are “bordering on profiteering.”
To cool prices, the DA directed state-run firms such as Food Terminal Inc. and Planters Products Inc. to sell rice at P45 and at P48 per kilo. FTI and PPI have already begun selling in Metro Manila and may expand to Southern Luzon, Cebu and other major cities.
