THE Department of Agriculture (DA) plans to introduce before the end of the month a maximum suggested retail price (MSRP) for imported rice to bring down prices.
Agriculture Secretary Francisco Tiu Laurel Jr., in an interview on Monday, Jan. 6, said the policy MSRP would be “released very soon,” the first time the DA would introduce such a measure.
Although he did not say what the MSRP would be, Tiu Laurel said imported rice should not be sold at P60 per kilogram in public markets as this was “already profiteering in my opinion.”
Agriculture Assistant Secretary Arnel de Mesa, also the DA spokesperson, said that assuming a profit margin of P6 to P8 per kilogram, the average retail price should not exceed P52.
He added that the prevailing price of P60 per kilogram and above for some varieties of imported rice was “really too much.”
De Mesa explained that the MSRP would be different from the price cap or suggested retail price (SRP).
If the MSRP for imported rice is set at P40 per kilogram, retailers should not sell the commodity for more than P40 per kilogram.
On the other hand, the SRP guides producers, manufacturers, traders, dealers, sellers, retailers, and consumers on the pricing of basic necessities and prime commodities. Retailers, however, are not required to follow the SRP since it is voluntary.
Difference
“SRP per se is you are putting the exact amount that should be the selling price of the product,” De Mesa said.
“MSRP means setting a price limit, stating that the price of rice should not exceed a particular amount. So in effect, you are not specifying the SRP per se but you are providing a reference that the price of this commodity, especially rice, should not exceed the indicated amount price,” he explained.
Sought for comment, Federation of Free Farmers national manager Raul Montemayor said the DA should have a “firm basis” for saying that the retail price of imported rice should not exceed P60 per kilogram.
For his part, Samahang Industriya ng Agrikultura executive director Jayson Cainglet said they have long been proposing a price cap or SRP for imported rice but “with punitive action” using the Anti-Agricultural Smuggling Act.
The DA will meet with concerned government agencies, including the Department of Trade and Industry, the Department of Finance, and the Philippine National Police, to finalize the policy on the implementation of the MSRP.
As of Jan. 3, imported regular milled rice was priced from P40 to P48 per kilogram. Imported well-milled rice went for P40 and P54 per kilogram, lower than last year’s P51 to P56 per kilogram. (Jordeene B. Lagare © Philippine Daily Inquirer)
