DA considers ?50/kg price cap on imported rice amid rising oil and shipping costs
The Department of Agriculture is considering imposing a price ceiling on imported rice as rising oil prices and shipping costs begin to affect the domestic grain market.
Agriculture Secretary Francisco P. Tiu Laurel Jr. said the government is studying a possible retail cap of around ₱50 per kilo for imported rice. The proposed ceiling aims to keep prices affordable for consumers while ensuring that farmgate prices for palay remain stable for local farmers.
“We are studying the imposition of a price cap on imported rice, possibly ₱50 per kilo,” Tiu Laurel said. He added that the department is reviewing whether such a move is legally viable. If allowed, the proposal will be submitted to Ferdinand Marcos Jr. as part of a broader response to the impact of the latest global oil shock.
For now, the agriculture chief said the government is unlikely to impose a similar price cap on locally produced rice. He warned that introducing controls too early could cause a drop in farmgate prices, particularly while Filipino farmers are benefiting from higher palay prices during the ongoing harvest season.
“We may impose a price cap on local rice after the harvest to avoid profiteering,” he said.
The government’s caution comes amid growing geopolitical tensions that are influencing global commodity markets. Concerns over Iran’s potential move to control tanker traffic in the Strait of Hormuz, amid its conflict with the United States and Israel, have pushed oil prices higher. Rising fuel costs are also increasing fertilizer and freight expenses.
These developments are already affecting rice imports. According to the agriculture department, freight rates have doubled, pushing the landed cost of the widely imported DT8 rice variety to nearly $500 per metric ton.
Despite the increase in costs, Tiu Laurel said retail prices reaching ₱60 to ₱65 per kilo in some markets are “bordering on profiteering.”
To help stabilize prices, the government has directed state-run firms such as Food Terminal Inc. and Planters Products Inc. to sell rice at ₱45 and ₱48 per kilo. Sales have already started in Metro Manila and may expand to Southern Luzon, Cebu City, and other major urban centers.
NPO News Team | DA Press Office - PR
