Manila: The Department of Agriculture on Tuesday said it is weighing a price ceiling on imported rice as global tensions push up shipping and farm input costs.

According to Philippines News Agency, Agriculture Secretary Francisco Tiu Laurel Jr. stated that the DA is examining the legality of imposing a price ceiling and, if legally permissible, will recommend it to President Ferdinand Marcos Jr. as part of a package of actions to mitigate the impact of the latest oil shock. "We are studying the imposition of a price cap on imported rice, possibly PHP50 per kilo," he said, indicating that it would help keep retail prices stable without affecting farmgate prices for palay.

However, the DA chief mentioned that a similar ceiling on locally produced rice is unlikely for now. He cautioned that premature controls could trigger a price collapse just as Filipino farmers are enjoying improved palay prices during the current harvest cycle. "We may impose a price cap on local rice after the harvest to avoid profiteering," Tiu Laurel added.

The government's caution comes as geopolitical tensions ripple through global commodity markets. Concerns over Iran's moves to control tanker traffic through the Strait of Hormuz amid its conflict with the United States and Israel have driven oil prices higher, subsequently increasing fertilizer, fuel, and freight costs.

The impact is already evident in rice imports, as freight rates have doubled, pushing the landed cost of the widely imported DT8 variety close to USD500 per metric ton, according to the DA. Despite the higher costs, Tiu Laurel noted that retail prices of PHP60 to PHP65 per kilo being reported in some markets are "bordering on profiteering."

In response to these price hikes, the DA has directed state-run firms such as Food Terminal Inc. and Planters Products Inc. to sell rice at PHP45 to PHP48 per kilo. FTI and PPI have already begun selling in Metro Manila and may expand to Southern Luzon, Cebu, and other major cities.