The Department of Agriculture (DA) has made the decision to reject the imposition of a suggested retail price (SRP) on rice and other agricultural products in an effort to stabilize local prices of commodities. Agriculture Secretary Francisco Tiu Laurel Jr. emphasized that setting retail prices would only negatively impact farmers, as traders would lower their purchase prices to maximize their profits.
Secretary Laurel stated, “We’re not doing it. … 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.” He further explained that consumers would not benefit from such a situation, and it could potentially lead to price speculation and supply hoarding, creating additional problems.
The proposal for an SRP was based on available remedies under Republic Act 7581, also known as the “Price Act.” The DA had been studying the imposition of an SRP on rice due to rising prices; however, the reimposition of a price cap has been completely ruled out.
The Price Act grants the Department of Agriculture the authority to stabilize the prices of farm products, including rice, fish, meat, poultry, and fertilizers, during times of emergencies. However, the implementation of rules and regulations is required before the DA can exercise that power.
To address this, the department announced the creation of a technical working group that will develop the implementing rules and regulations (IRR) for Section 9 of the Price Act, specifically related to agricultural products. Secretary Laurel emphasized that this move serves as a warning to price manipulators and reassured farmers and consumers that they will be protected against those who may attempt to exploit any supply shortage.
Secretary Laurel acknowledged the volatility and fluctuations in the prices of agricultural products in the international market, particularly due to the El Niño weather phenomenon. This has also affected the global rice market, as countries anticipate a drop in harvest and increase their rice imports.
Given these circumstances, the department is not currently suggesting price control measures. Instead, they are working diligently to ensure an ample supply of rice and other farm products during the El Niño. Reports from the National Irrigation Administration’s Upper Pampanga Integrated Irrigation System indicate that there is sufficient water supply to support a strong rice output. This irrigation system provides water to farms in major rice-producing provinces such as Nueva Ecija, Bulacan, and Pampanga.
“We’re building up a buffer, largely through importation, to ensure we have ample supply of rice as we await the next harvest starting in March. This should help keep prices stable without government intervention,” Secretary Laurel explained.
In conclusion, the Department of Agriculture has decided against imposing a suggested retail price on rice and agricultural products. Their focus is on ensuring an adequate supply of rice and other farm products during the El Niño period, while also protecting the interests of farmers and consumers. The department will continue to monitor the situation and take necessary measures to stabilize prices without resorting to government intervention.
Source: The Manila Times
