Daven Tamayo

Agriculture chief suspects rice-pricing manipulation

Workers unload sacks of rice from Thailand into a warehouse in Tondo, Manila on June 23, 2022. In a report by the United States Department of Agriculture’s Foreign Agriculture Service, the Philippines is forecast to import 2.8 million metric tons (MT) of rice for market year 2022/2023 with importation “expected to remain important in maintaining food security,” as it projected an increase in consumption due to a growing population. George Calvelo, ABS-CBN News

Article (news)

ABS-CBN News

<p>MANILA - The Department of Agriculture announced plans to remove brand labels from imported rice, citing concerns that some industry players are manipulating the system to inflate prices and exploit Filipino consumers.</p><p>&quot;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,&quot; said Agriculture Secretary Francisco Tiu Laurel, Jr. </p><p>The DA chief also ordered the removal of labels like &quot;premium&quot; and &quot;special&quot; on imported rice, which he believes are being used to justify inflated prices.</p><div><a href="https://www.abs-cbn.com/news/business/2024/12/4/p40-per-kilo-rice-available-in-metro-manila-train-stations-from-dec-5-agri-dept-1132"><strong>P40 per kilo rice available in Metro Manila, train stations from Dec. 5: agri dept</strong></a></div><p>Locally produced rice will be exempted from this rule to protect Filipino farmers and traders.</p><p>“Importing rice is not a right but a privilege,” Sec. Tiu Laurel said. “If traders are unwilling to follow our regulations, we will withhold permits for rice importation.&quot; </p><p>Data gathered from retailers, traders, and importers suggest that a markup of P6 to P8 per kilo from the landed cost of imported rice is sufficient to profitably sustain the operations of all parties involved in the supply chain. For example, if rice is purchased from Vietnam at an all-in cost of P40 per kilo, the consumer price should not exceed P48 per kilo. </p><p>Sec. Tiu Laurel is also considering several measures to address rice price volatility, including invoking a food security emergency under the amended Rice Tariffication Law, which would allow the release of buffer stocks from the National Food Authority (NFA) to stabilize prices. </p><div><a href="https://www.abs-cbn.com/news/nation/2024/12/10/pcc-executive-director-grilled-over-failure-to-explain-rice-prices-2350"><strong>PCC executive director grilled over failure to explain rice prices</strong></a></div><p>Despite President Ferdinand Marcos Jr.’s reduction of the rice tariff to 15 percent from 35 percent in July, prices of some rice brands have remained stubbornly high, frustrating both the government and consumers. </p><p>Secretary Tiu Laurel has also suggested enlisting the Department of Finance, particularly the Bureau of Internal Revenue, to audit the financial records of rice traders to ensure compliance with fair pricing practices as well as the Department of Trade and Industry to assist in monitoring prices of rice in markets and groceries.</p><div><span class="fr-video fr-deletable fr-fvc fr-dvb fr-draggable" contenteditable="false" draggable="true"><iframe width="640" height="360" src="https://www.youtube.com/embed/st7ohzRy8Ek?&amp;wmode=opaque&amp;rel=0" frameBorder="0" allowfullscreen="" class="fr-draggable"></iframe></span><br/></div>

<p>The Department of Agriculture said it plans to remove brand labels from imported rice on concerns that this is being used by some players to inflate prices. </p>

The Department of Agriculture said it plans to remove brand labels from imported rice on concerns that this is being used by some players to inflate prices.