As they are looking to balance the profits of farmers and the budget of consumers.
On Tuesday, May 19, Agriculture Secretary Francisco Tiu Laurel Jr. announced that the Department of Agriculture (DA) has reached an agreement with rice industry stakeholders.
According to him, the suggested retail price (SRP) per kilogram of local rice has been set to PHP53, with a DA memorandum detailing the SRP to be released soon.
“This is not a price ceiling. It’s just a guide for consumers on fair local rice prices,” Tiu Laurel noted. “I’ve consulted rice millers and industry groups, and PHP53 per kilo is acceptable.”
He added, market players may still sell at lower prices, allowing others in the value chain to earn reasonable margins.
This suggested price positions local rice slightly above imported 5-percent broken rice, which was previously directed by President Ferdinand Marcos Jr. to be capped at PHP50 per kilo for 30 days starting May 14 under Executive Order No. 118.
Marcos based the directive on the recommendation of the National Price Coordinating Council (NPCC) and seeks to address unjustified price increases, prevent market abuse, and ensure the availability of affordable rice while maintaining market stability.
Regarding imported rice, Tiu Laurel said full enforcement of the PHP 50 price cap will begin next week, giving retailers and consumers time to adjust.
Based on E.O. 118, the DA, along with the Department of Trade and Industry (DTI), “shall ensure strict, uniform enforcement of the price ceiling, including monitoring and investigating abnormal price movements.“