He said that the cap on the 5 percent broken imported rice remains fair and still allows decent margins across the supply chain.
Last Tuesday, Agriculture Secretary Francisco Tiu Laurel Jr. told reporters led an inspection of rice prices in Paco Public market in Manila.
Specifically, he checked on the implementation of the government’s PHP 50 per kilo price ceiling, which was recently signed by President Ferdinand Marcos, Jr. through Executive Order No. 118 and will be valid until early June.
According to Tiu Laurel, the cap was carefully calibrated using landed import costs of PHP 37 to PHP 38 per kilogram, which also accounts for logistics, shrinkage, and reasonable markups from importer to trader to retailer.
“At a landed cost of around P37 to P38 per kilo, there is still a workable margin across the value chain,” Tiu Laurel said. “We are ensuring consumers get affordable rice while traders and retailers remain viable. The goal is balance, not disruption.”
The Department of Agriculture (DA) chief also stressed that the intent of the policy is price stability, not squeezing out business, and warned against excessive markups while global rice prices remain tight and politically sensitive.
He also further clarified the pricing logic, saying the structure already accounts for costs beyond import value, including transport, handling losses, and market variability.
“For the entire value chain—from importer to trader to retailer—the markup should only be around P10. If landed cost is P38, retail should be about P48. We set it at P50 to allow for hidden costs like logistics and possible spoilage. At P50, everyone in the chain should still earn.”
Meanwhile, they also warned erring rice retailers, traders, and importers that violators of the government’s newly imposed price ceiling on imported rice could face jail time, million-peso fines, and even business closures under the Price Act.
Tiu Laurel said, “Unlike the previous maximum suggested retail price that depended largely on moral suasion and voluntary compliance, the mandated price ceiling now allows the Department of Agriculture to impose punitive sanctions and fines on violators.”
Under Republic Act No. 7581, or the Price Act, violators of a government-imposed price ceiling on basic necessities, such as rice, may face imprisonment of one to 10 years, fines ranging from PHP 5,000 to PHP 1 million, or both, depending on the court’s discretion.
Aside from criminal penalties, the DA may also impose administrative sanctions under the implementing rules of the Price Act like temporary or permanent closure of establishments, confiscation or seizure of products involved in the violation, suspension or revocation of permits and licenses, and the issuance of cease-and-desist orders.
Administrative fines ranging from PHP 1,000 to PHP 1 million may also be imposed on such establishments.
The law further states that officers or employees of corporations found violating the price ceiling may be held personally liable.
Tiu Laurel urged everyone’s cooperation during these challenging times. “No one should be profiteering in the whole value chain, especially during this period. The price cap will run for 30 days, and we hope everyone cooperates because the country is struggling. We are not saying traders should not earn—just not excessively,” he added.
He also noted that price monitoring teams will also help establishments comply through intensified market price monitoring.
“The DA will be going around markets across the Philippines daily and weekly. Retailers can approach our teams directly. We are distributing pamphlets with implementation guidelines and contact details so concerns can be addressed quickly. We want smooth implementation,” he stated.
IMPORTATION AS LAST RESORT TOOL
Meanwhile, in a statement, the Agriculture Secretary on May 14 reassured lawmakers that importation remains a last-resort tool, not a standing policy of the Department of Agriculture (DA).
He noted that overseas sourcing will only be used in tightly defined cases where supply shortfalls threaten price stability and food security.
“Importation is not our first resort—it is our last line of defense,” Tiu Laurel said, adding that the government has moved to deliberately reduce independence on imports.
“Every decision to allow entry is weighed against its impact on farmers, consumers, and long-term food security,” he added.
“We will not normalize imports,” Tiu Laurel also noted. “They will only be deployed when supply truly fails, prices spiral, and consumers are at risk. Our priority is simple: strengthen local agriculture first, and import only when absolutely unavoidable.”