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The Department of Agriculture plans to ban brand labels and terms like “premium” and “special” on imported rice to prevent price manipulation
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Locally-produced rice is exempt to support Filipino farmers and traders
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To address rice price volatility, Tiu Laurel is considering several measures, including invoking a food security emergency under the amended Rice Tariffication Law
The Department of Agriculture (DA) plans to ban brand labels and terms like “premium” and “special” on imported rice to prevent price manipulation, Agriculture Secretary Francisco P. Tiu Laurel Jr. said in a statement.
“After conducting a series of market visits, we now have reason to believe that some retailers and traders are intentionally confusing Filipino consumers with branded imports to justify the high prices of rice,” Tiu Laurel said.
In addition to banning brand names, Tiu Laurel directed the removal of labels such as “premium” and “special” on imported rice, which he said are being used to justify inflated prices.
Locally-produced rice, however, will not be subject to these restrictions, as part of the government’s effort to support Filipino farmers and traders.
“Importing rice is not a right but a privilege,” Tiu Laurel said. “If traders are unwilling to follow our regulations, we will withhold permits for rice importation.”
The DA has determined that a markup of P6 to P8 per kilo from the landed cost of imported rice is sufficient to sustain the supply chain profitably, based on the data gathered from retailers, traders, and importers.
For instance, rice imported from Vietnam at a cost of P40 per kilo should not be sold to consumers for more than P48 per kilo.
To address rice price volatility, Tiu Laurel is considering several measures, including invoking a food security emergency under the amended Rice Tariffication Law. This would allow the National Food Authority to release buffer stocks into the market to stabilize prices.
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The agriculture department is also exploring the possibility of allowing government corporations such as Food Terminal Inc. to import substantial quantities of rice to compete directly with private importers. Tiu Laurel has instructed the DA’s legal division to examine whether the Consumer Price Act can be utilized to combat alleged profiteering by traders.
Despite President Ferdinand Marcos Jr.’s reduction of rice import tariffs to 15% from 35% in July, prices for some rice brands have remained high, causing frustration among consumers and policymakers alike, according to the DA.
To ensure fair pricing practices, Tiu Laurel has proposed enlisting the Department of Finance, particularly the Bureau of Internal Revenue, to audit the financial records of rice traders. He also urged the Department of Trade and Industry to assist in monitoring rice prices in markets and grocery stores.
