DA drops plan for rice SRP
MANILA, Philippines — The Department of Agriculture (DA) is no longer considering the imposition of a suggested retail price (SRP) on rice, Secretary Francisco Tiu Laurel Jr. said yesterday.
“We’re not doing it. Prices of rice and other agricultural products in international markets like Thailand and other countries are volatile and fluctuating due to El Niño. Hence, we’re not suggesting to control prices at the moment,” Laurel said.
Laurel’s announcement came a few days after DA spokesperson Arnel de Mesa said the agency may release the SRP next week amid the unabated spike in retail price of the grains.
At a press conference on Monday, De Mesa said that a technical committee even met to discuss the SRP of rice two days after announcing that the DA was mulling its implementation.
Laurel maintained that earlier proposals for an SRP were just an idea based on available remedies laid out by Republic Act 7581 or the Price Act.
“I’m well aware that setting retail prices, even if just suggested, for particular goods tend to be counterproductive, especially when there is ample supply,” Laurel added.
The Price Act Law empowers the DA to stabilize prices of farm products and inputs, including rice, fish, meat, poultry and fertilizers, in times of emergencies, he said.
“In most cases, farmers bear the brunt of a price limit because traders will only lower their purchase prices to keep their margins. Consumers also don’t benefit in such a situation. It could also fuel price speculation and supply hoarding that evolves into another problem altogether,” he noted.
According to Laurel, the provision of the Price Act requires implementing rules and regulations to be first put in place before the DA could exercise that power.
He said international prices of rice are fluctuating as countries try to increase their rice reserves through importation on concerns of potential drop in harvest due to an expected strong El Niño episode.
Laurel said his agency is working double time to ensure ample supply of agricultural products, particularly rice, in the face of a potential prolonged dry spell due to El Niño, and taking steps to mitigate the weather phenomenon’s impact on local
