Rice Price Regulation in Focus: DA Eyes SRP to Tackle Rising Costs

The Department of Agriculture (DA) in the Philippines is contemplating the implementation of suggested retail prices (SRPs) for rice products, in response to rice prices reaching a 14-year high. DA spokesperson Assistant Secretary Arnel de Mesa emphasized the need for consultations with all stakeholders, including consumer and producer groups, traders, and millers, before setting these SRPs. This consideration follows reports from the Philippine Statistics Authority showing the fastest rice inflation rate since March 2009.

The DA’s initiative aims to maintain rice affordability for Filipino consumers. Factors like production costs, warehousing, milling, drying, and retailer expenses will be taken into account to establish these SRPs. In December last year, the average national price for regular milled rice was at P48.50 per kilo, a significant increase from the previous year. Additionally, the price for well-milled rice also saw a rise. The Samahang Industriya ng Agrikultura (SINAG) attributed this increase to low production and higher international market prices.

To address the rising prices and ensure sufficient supply, the DA has facilitated the import of rice. A portion of a 295,000-metric ton rice import from India has already arrived, and further imports by the private sector are expected to augment the country’s supply until the next harvest season in March 2024. Despite concerns from farmer groups about potential price hikes, the DA remains optimistic about the stability of the rice supply and prices in the country​​.