Manila: The National Price Coordinating Council (NPCC) is considering declaring an extraordinary increase in food prices to allow the Department of Agriculture (DA) to declare a food security emergency, a trade official said Wednesday. During the hearing of the House of Representatives Quinta Committee or the Murang Pagkain Supercommittee, Department of Trade and Industry (DTI) Consumer Protection and Advocacy Bureau (CPAB) officer in charge Director Cherryl Carbonell disclosed that the NPCC had recently convened and is working on a resolution.
According to Philippines News Agency, Carbonell informed lawmakers that the NPCC met recently and is evaluating the possibility of declaring a significant price increase to enable the DA secretary to declare a food security emergency. Agriculture Secretary Francisco Tiu Laurel Jr., Assistant Secretary Genevieve Velicaria-Guevarra, and Undersecretary Alvin John Balagbag attended the meeting. Consensus was reportedly reached on the urgency of the situation.
Under Republic Act (RA) 12708 or the Agricultural Tariffication Act, the DA secretary has the authority to declare a food security emergency in response to rice supply shortages or extraordinary price spikes. The NPCC advises the DA secretary on whether these conditions have been met.
Philippine Statistics Authority (PSA) Chief Statistical Specialist Glen Polo reported a decline in average rice prices in December 2024 compared to November 2024. Regular-milled rice averaged PHP48.81 per kg. in December, down from PHP49.24 in November, while well-milled rice dropped to PHP54.38 from PHP54.64. Year on year, average prices recorded in December 2024 were higher than in December 2023, but the inflation rate for rice slowed to 0.8 percent.
To address high rice prices, the DA plans to implement a maximum suggested retail price (MSRP) of PHP58 per kg. for imported rice in Metro Manila as part of a pilot program. Agriculture Undersecretary Asis Perez said the PHP58 MSRP was based on the landed cost of imported rice and included a reasonable markup across the supply chain.
Iloilo Rep. Janette Garin criticized the pricing as disconnected from market realities. She argued that with logistics and markups, retail prices should not exceed PHP49 per kg. Garin called the PHP58 MSRP a 'wrong solution' and urged an investigation into alleged collusion among traders.
In response, Perez acknowledged the disparity between retail and landed costs, emphasizing the burden on farmers. He suggested invoking Section 6 of the Price Act to impose price caps if retail prices remain misaligned with import costs. The Quinta Committee, formed under House Resolution 254, is tasked with addressing challenges like soaring food prices, smuggling, and price manipulation. The committee aims to identify gaps in government programs and hold accountable those responsible for market abuses.
