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The Department of Agriculture (DA) on Tuesday said the PHP50 per kilogram price cap for 5 percent broken imported rice is reasonable for fair market margins.

The price cap was earlier approved to help protect consumers from food inflation, following the recent effects of global oil price surges due to the tensions in the Middle East.

 In a statement, Agriculture Secretary Francisco Tiu Laurel Jr. said the price cap provides “enough room” for reasonable profit for the entire value chain.

“We are ensuring consumers get affordable rice while traders and retailers remain viable. The goal is balance, not disruption,” he said on the sidelines of his market inspection at the Paco Public Market in Manila.

The PHP50 per kg price cap is calibrated considering landed costs, logistics, shrinkage, and markups across importers, traders, and retailers.

 “At a landed cost of around PHP37 to PHP38 per kilo, there is still a workable margin across the value chain,” Tiu Laurel said.

A reasonable markup across the value chain should only be at PHP10 per kilogram, he added.

“If (the) landed cost is PHP38, retail should be about PHP48. We set it at PHP50 to allow for hidden costs like logistics and possible spoilage. At PHP50, everyone in the chain should still earn,” Tiu Laurel said.

He urged stakeholders to cooperate for the month-long imposition of an imported rice price cap nationwide.

“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,” Tiu Laurel said.

The DA will enforce full implementation next week, as it plans to deploy field teams nationwide.

Stakeholders will be monitored, and retailers will be assisted to ensure compliance and accessibility for fair imported rice prices.

 “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,” Tiu Laurel said, citing weekly and daily inspections in local markets. 

Source : pna