DA ready to enforce P50/kg cap on imported rice (original) (raw)

The Department of Agriculture (DA) on Thursday said it is ready to enforce the P50-per-kilogram (kg) price cap on imported rice.

On Wednesday, President Ferdinand Marcos Jr. issued Executive Order 118 imposing a P50/kg price cap on 5-percent broken imported rice for 30 days, effective immediately.

Five-percent broken imported rice is a specific grade of high-quality imported rice — primarily from Vietnam or Thailand — that contains a low percentage (5 percent) of broken kernels, often considered a premium grade compared to rice with higher (25 percent) broken content.

The order sought to address unjustified price hikes, prevent market abuse, and guarantee the availability of affordable rice while preserving market stability.

It also protects consumers from soaring food prices due to inflationary pressures caused by the Middle East war.

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“We will implement this immediately to help the general public cope,” Agriculture Secretary Francisco Tiu Laurel Jr. said, noting that the DA can run after cartels, hoarders, profiteers, and market manipulators under the Price Act and the Anti-Agricultural Economic Sabotage Law.

Inflation has rapidly expanded since oil prices spiked following the Middle East conflict which began on Feb. 28. Headline inflation climbed to 4.1 percent in March and 7.2 percent in April, up from 2.4 percent in February and 1.4 percent in April last year.

Food inflation alone jumped to 6.1 percent in April from 2.7 percent in March, reflecting the growing strain on household finances.

Rice accounts for 9 percent of the consumer basket used to measure inflation, making it one of the country’s most politically and economically sensitive commodities. It also comprises one-fifth of household spending for the poorest 30 percent of Filipino households, making price increases difficult for these families.

The temporary price cap on imported rice complements previous measures to reduce inflation and stabilize food prices, the DA said. These include the government’s P20/kg rice program and the maximum suggested retail price system for imported rice.

While initially good only for one month, Tiu Laurel said the National Price Coordinating Council will review it within two weeks of its implementation and may suggest adjustments, extension, or removal depending on market conditions.

Criticism

On the other hand, the Kilusang Magbubukid ng Pilipinas (KMP) criticized the price cap, saying it is a band-aid solution and not a real answer to the food crisis and inflation.

The measure favors importers over local rice farmers, the peasant group said, noting that P50 for a kilogram of rice is expensive for families suffering from poverty and low wages.

“Amidst the 7.2% inflation in April, the highest in the past three years, and 13.7 percent rice inflation, it is clear that the Marcos administration has failed to control the prices of food and basic commodities,” KMP said, describing the price ceiling as an artificial and temporary solution that will not address the root of the problem.

The group also cited recently released results from the Social Weather Stations (SWS) survey, which showed that 52 percent (14.5 million families) identified themselves as poor, while 42 percent (11.7 million families) reported experiencing food poverty or the inability to afford adequate, nutritious food.

The crisis stems from rice cartels’ and big traders’ control over supply, as well as government policy that allowed the liberalization of rice imports, KMP said.

It added that President Ferdinand Marcos Jr. and the DA continue to implement the wrong policies instead of developing local palay production, since country remains dependent on imports.

To address these issues, KMP recommended rejecting rice and agricultural liberalization; strengthening local production through subsidies, irrigation, and genuine land reform; and supporting palay prices to ensure that rice will be sufficient and truly affordable for everyone.