Agriculture Secretary Francisco Tiu Laurel Jr. has proposed enlisting the Department of Finance, particularly the Bureau of Internal Revenue, to audit the financial records of rice traders to ensure compliance with fair pricing practices.
He also suggested involving the Department of Trade and Industry to assist in monitoring rice prices in markets and groceries, as the government intensifies its efforts to curb price manipulation.
Tiu Laurel’s proposals were made despite President Ferdinand Marcos Jr.’s reduction of the rice tariff to 15 percent from 35 percent in July and the prices of some rice brands have remained stubbornly high, frustrating both the government and consumers.
To address this, Secretary Tiu Laurel announced plans to remove brand labels from imported rice, citing concerns that some industry players are manipulating the system to inflate prices and exploit Filipino consumers. “
After conducting a series of market visits, we now have reason to believe that some retailers and traders are intentionally confusing Filipino consumers with branded imports to justify the high prices of rice,” he said.
Apart from removing brand names, the DA chief ordered the elimination of labels like “premium” and “special” on imported rice, which he believes are being used to justify inflated prices.
Locally-produced rice, however, will be exempted from this rule to protect Filipino farmers and traders. “Importing rice is not a right but a privilege,” Secretary Tiu Laurel said.
“If traders are unwilling to follow our regulations, we will withhold permits for rice importation,” he warned.
Data from retailers, traders, and importers indicate that a markup of P6 to P8 per kilo from the landed cost of imported rice is sufficient to profitably sustain the operations of all parties involved in the supply chain.
For instance, if rice is purchased from Vietnam at an all-in cost of P40 per kilo, the consumer price should not exceed P48 per kilo.
To stabilize rice prices further, Secretary Tiu Laurel is considering invoking a food security emergency under the amended Rice Tariffication Law, allowing the release of buffer stocks from the National Food Authority (NFA).
He is also exploring the possibility of enabling government corporations like Food Terminal Inc. to import significant quantities of rice to compete directly with private importers.
Additionally, the DA legal division has been directed to examine whether provisions of the Consumer Price Act can be activated to address potential profiteering.
