DA to set P53/kilo SRP for local rice

MANILA, Philippines — A suggested retail price of P53 per kilo of rice will be imposed by the Department of Agriculture.

DA Secretary Francisco Tiu Laurel Jr. said they have reached a deal with rice industry stakeholders, striking a balance between farmers’ profits and consumers’ budgets.

“This is not a price ceiling. It’s just a guide for consumers on fair local rice prices,” Tiu Laurel said yesterday.

The SRP positions local rice slightly above imported five-percent broken rice, capped at P50 per kilo for 30 days starting May 15.

The price cap of P50 was calibrated using landed import costs of P37 to P38 per kilo, leaving enough room for logistics, shrinkage and reasonable markups from importer to trader to retailer, Tiu Laurel asserted.

“For the entire value chain – from importer to trader to retailer – the markup should only be around P10. If the landed cost is P38, retail should be about P48. We set it at P50 to allow for hidden costs like logistics and possible spoilage. At P50, everyone in the chain should still earn,” he explained.

Full enforcement of the imported rice price cap of P50 will start next week, giving retailers and consumers time to adjust, Tiu Laurel said.