Price council backs P50 cap on imported rice

THE National Price Coordinating Council (NPCC) said it endorsed the Department of Agriculture’s (DA) proposal to set a P50-per-kilo price ceiling on imported rice.

In a statement on Thursday, the NPCC said it will recommend to the President a P50 per kilo maximum for imported rice with 5% broken-grain content, effective for 30 days.

“The NPCC hereby endorses to the President the issuance of the necessary executive order to ensure affordable rice for consumers while maintaining market stability,” it said.

The council said the proposed price cap seeks to curb unreasonable price increases and prevent market abuse.

The DA said the recent increase in rice prices has partly been driven by higher freight costs following the outbreak of fighting in the Middle East.

“For instance, freight cost for rice shipments from Vietnam rose to about $40 per metric ton, from $20 per metric ton previously,” Mr. Laurel said.

Despite the increase, the DA expects the peak of the rice harvest in March and April to help stabilize prices in the coming weeks.

“Luckily, peak harvest starts now and lasts until the end of April. We expect a lot of volume, so that it should temper prices and possibly bring them down,” Mr. Laurel said.

Danilo V. Fausto, president of the Philippine Chamber of Agriculture and Food, Inc., told BusinessWorld that the price cap on imported rice would help consumers amid rising food costs, but without affecting farmers’ income.

“The price cap is good for the consumers and will not affect much the farmgate price of palay (unmilled rice),” he said via Viber.

Mr. Fausto added that a price ceiling on imported rice could also help discourage excessive imports, benefitting domestic producers.

Jose Enrique A. Africa, executive director of think tank IBON Foundation, said that while a price cap can help curb profiteering, it may not address the deeper issues affecting farmers and consumers.

“What’s really needed is a combination of rural producer subsidies, active market intervention to weaken the hold of traders, and direct relief for poor and low-income households,” he told BusinessWorld via Viber.

Mr. Africa said government support is crucial to help farmers cope with rising production costs, “discipline” the supply chain. Meanwhile, cash assistance will be required to protect the purchasing power of vulnerable consumers. — Vonn Andrei E. Villamiel