DA Stands Against Rice Price Caps Despite Inflation Surge

The Department of Agriculture (DA) has stated it will not endorse the implementation of a retail price ceiling or suggested retail prices (SRPs) for rice, despite experiencing the highest inflation rate for the staple in 15 years. Assistant Secretary Arnel de Mesa expressed concerns about the potential negative long-term effects of such price controls.

Rice inflation in the Philippines escalated to 24.4% in March 2024, marking a significant increase since the 24.6% rate in February 2009. This rise continues despite the temporary price cap set by President Ferdinand Marcos Jr. last year, which was later lifted. The Philippine Statistics Authority (PSA) anticipates this inflation trend to persist until July 2024, attributed to a low base effect and higher prices in the previous year.

Despite this, month-on-month rice prices are reportedly decreasing, with current rates slightly lower than the previous month’s. The DA aligns with the PSA’s outlook that rice inflation will stabilize by August 2024.

The DA remains committed to President Marcos’s goal of reducing rice prices to P20 per kilogram, focusing on long-term strategies to decrease production costs and enhance competitiveness in the agricultural sector.