Manila: The Department of Agriculture (DA) announced on Tuesday that the PHP50 per kilogram price cap for 5 percent broken imported rice is deemed reasonable to maintain fair market margins. This price cap was approved as a measure to shield consumers from food inflation, which has been exacerbated by recent global oil price surges due to tensions in the Middle East.

According to Philippines News Agency, Agriculture Secretary Francisco Tiu Laurel Jr. stated that the price cap allows for reasonable profit across the entire value chain. He emphasized the importance of providing affordable rice to consumers while ensuring that traders and retailers can still operate viably. "The goal is balance, not disruption," Tiu Laurel said during a market inspection at the Paco Public Market in Manila.

The PHP50 per kg price cap has been set with consideration of landed costs, logistics, shrinkage, and markups for importers, traders, and retailers. Tiu Laurel explained that with a landed cost of about PHP37 to PHP38 per kilo, there is a feasible margin for everyone involved in the value chain. A markup of PHP10 per kilogram is considered reasonable, allowing for hidden costs like logistics and spoilage.

Tiu Laurel called on stakeholders to cooperate with the month-long nationwide imposition of the imported rice price cap, stressing that no one should engage in profiteering during this period. The price cap is set for 30 days, with an emphasis on fair earnings rather than excessive profits.

The DA is preparing to fully enforce the price cap next week by deploying field teams across the country. Stakeholders will be monitored, and retailers will receive assistance to ensure compliance with the fair pricing of imported rice. Pamphlets with guidelines and contact details will be distributed to address any concerns promptly. Tiu Laurel highlighted the importance of smooth implementation, with weekly and daily inspections planned in local markets.