By Stephanie Sevillano

MANILA – The Department of Agriculture (DA) on Friday announced the initial implementation of the maximum suggested retail price (MSRP) for imported rice at PHP58 per kilogram in Metro Manila on Jan. 20.
In an ambush interview at the sidelines of a market inspection with the Department of Trade and Industry (DTI), DA Secretary Francisco Tiu Laurel Jr. expressed confidence in the cooperation of markets in complying with the MSRP.
“I think everybody wants to help consumers without affecting the farmers. I think and I’m confident na magkakasundo naman (there will be an agreement),” he said, saying it will be “mandatory” for all retailers.
“Yes, we will be talking to the supermarkets and convenience stores selling rice next week with the Secretary of DTI. Sasabihin namin sa kanila na kapag ginawa natin ito (we will tell them that once this is in place), we need full cooperation for imported rice.”
The MSRP gives importers and retailers a profit margin of around PHP10/kg based on the highest international market price of high-quality imported rice from Vietnam, which is 5 percent broken, according to the DA.
The DA’s computation includes multiplying the world market price by the PHP59 to the dollar exchange rate and 15 percent tariff, for a landed cost of PHP48/kg.
“Sa ngayon, iyong world price bumababa, so baka iyong (For now, the world price is dropping, so maybe the) PHP58 MSRP in the future should be lower if the world price continues to go down,” Tiu Laurel said.
High prices of branded imported rice, however, were still seen during the market visit at the Murphy market in Quezon City, with a similar level that was earlier deemed “profiteering.”
The DA chief underscored anew the need to remove special and premium brands to prevent those taking advantage.
“Iyong unang stall kung saan mas malapit sa bukana, nasa PHP60, iyong huling stall na pang-apat na napuntahan namin, PHP54. Bakit may PHP60? Pwede namang PHP54, parehas na brand. Iyong kalaban naman na pareho ang type, iba lang ang brand, limang pisong mas mababa (The first stall near the entrance, rice costs around PHP60/kg, the last stall which was the fourth to be visited is only PHP54. Why is there a PHP60? It could be PHP54, it’s the same brand. Those with the same type of rice but different brands, it’s cheaper by PHP5),” Tiu Laurel said.
Once brand names are removed, he said, sacks of imported rice must indicate country of origin or province for local; as well as type, percent broken, and names of importer or miller, he added.
Consumers must also see the same information in rice retail labels.
If compliance to the MSRP remains a challenge, Tiu Laurel said they might consider having price ceilings to make violators liable before the law.
“Kung talagang hindi sila susunod, kung talagang may situation na mapipilitan ang DTI and DA to really control na may (If they really do not comply, if the situation will force DTI and DA to really control with) sanctions… we will recommend to the President price ceilings and then si Presidente ang magdedeklara ng (President Ferdinand R. Marcos Jr. will declare) price ceilings,” Tiu Laurel said.
Meanwhile, the DA chief assured that the MSRP does not intend to come up with a drastic drop in rice retail prices which will be unfavorable for farmers’ income.
“There has to be a balance. Let’s not hope for a total bagsak presyo (price drop). Affordable and fair price to all,” Tiu Laurel said.
The DA and DTI, meanwhile, are set to finalize the next plan for MSRP implementation in other key areas in the country including Cebu, Cagayan de Oro, Davao, Zamboanga, Iloilo, Negros Island, and Batangas. (PNA)