Dropping Rice SRP Plan: DA’s Latest Move
Published on: January 12, 2024.
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DA Drops Plan for Rice Suggested Retail Price (SRP)
The Department of Agriculture (DA) announced that it will not be implementing a suggested retail price (SRP) on rice. This decision comes amidst volatile and fluctuating rice prices in international markets. Secretary Francisco Tiu Laurel Jr. stated that controlling prices at this time is not recommended due to the effects of El Niño on agricultural products.
Previously, DA spokesperson Arnel de Mesa had mentioned the possibility of releasing an SRP for rice to address the increasing retail prices. However, Laurel clarified that the proposed SRP was merely an idea based on the provisions of the Price Act. He emphasized that setting retail prices, even if suggested, can be counterproductive when there is an adequate supply of rice.
Price Act Law and Stabilizing Prices
The Price Act Law grants the DA the authority to stabilize prices during emergencies. This includes farm products such as rice, fish, meat, poultry, and fertilizers. However, Laurel explained that implementing rules and regulations need to be established before the DA can exercise this power. He also cautioned that setting price limits for goods could negatively impact farmers and consumers and lead to price speculation and supply hoarding.
Importance of Ample Supply and Buffering
With concerns over the potential impact of El Niño on local rice production, the DA is working to ensure a sufficient supply of agricultural products, especially rice. Laurel mentioned that countries are currently increasing their rice reserves through importation, causing international rice prices to fluctuate. The agency is focusing on buffering rice supplies through importation, which should help maintain stable prices without government intervention.
The National Irrigation Administration’s Upper Pampanga Integrated Irrigation System has reported sufficient water supply for rice farms in major rice-producing provinces. This is expected to sustain strong rice output and mitigate the effects of El Niño. Importantly, the DA intends to crack down on any exploitation of potential supply shortages through the enforcement of the Price Act.
Positive Reactions and Perspectives
The decision to abandon the proposed SRP on rice has garnered support from farmers’ groups and rice retailers. They believe that the DA should prioritize increasing local rice production and implementing efficient food logistics and distribution systems. There were concerns that the SRP penalizes retailers without adequately addressing high prices and that the current supply of rice is not the main issue.
Furthermore, the arrival of 18,463 metric tons of imported rice from Vietnam, Thailand, and Pakistan is not expected to significantly lower retail prices. This quantity is only half of the national daily rice requirement.
Source: Philstar
