MANILA, Philippines – The Department of Agriculture (DA) is planning to set a “maximum suggested retail price” (MSRP) system for imported rice in a bid to lower prices.

“P60 [per kilo of] imported rice is already profiteering, in my opinion,” DA Secretary Francisco Tiu Laurel Jr. said in a mix of Filipino and English on Monday, January 6.

“And we are now trying to establish what should be the maximum suggested retail price, so we will be coming up with a maximum suggested retail price system very soon.”

Tiu Laurel said the department might come out with the MSRP by the end of January. The DA chief clarified that the MSRP is not a price cap.

The move follows marathon hearings at the House of Representatives conducted late last year investigating the alleged price manipulation, profiteering, and hoarding of imported rice. Lawmakers quizzed concerned agencies, including DA and the National Economic and Development Authority, on why prices of imported rice did not go down after the government lowered tariffs last year.

As of January 4, prices of imported special rice in Metro Manila range from P54 to P65 per kilo, while those of imported premium rice range from P52 to P60.

The MSRP is based on their computations taking into account the lowered prices in the international market and landed cost, including shipping fees and tariffs, said DA spokesman Arnel de Mesa on Monday.

“Mayroon kang basehan na kung paano nag-come up ng presyo,” said De Mesa. “Nagkaroon na rin kasi ng consultation sa mga importers noong isang araw at they all agree that these are possibilities. And para mawala na rin ‘yung sobrang pagpe-presyo ng bigas sa mga pamilihan.”

(We have a basis how the price is set. We also had consultations with importers the other day and they all agree that these are possibilities. And also to remove the excessive pricing of rice in markets.)

De Mesa said setting a MSRP will inform consumers of how much they should actually be buying imported rice.

“Kaya maglalagay ng MSRP so that our consumers will have [an] idea, magkaroon sila ng idea na dapat ito lang ‘yung presyuhan niyan base sa mga gastusin, sa presyo ng bigas sa international market, and the attendant cost bago makarating sa mga pamilihan ang ating imported na bigas.”

(That’s why we’re putting the MSRP so that our consumers will have an idea of the price range based on costs, on the price of rice in the international market, and the attendant cost before imported rice reaches our markets.)

In addition to the MSRP, De Mesa said the DA is also planning to include the type, country of origin, and percentage of broken rice in the products displayed in markets. According to the spokesman, the DA will soon be having discussions with other agencies for sanctions to those who will violate the MSRP.

“Ang next step ay makikipag-usap sa DTI, sa DOF, sa PNP, kung ano yung mga possible na sanctions or ano’ng puwedeng gawin doon na still na lalabag pa rin dito sa MSRP na suggestion ni Secretary,” said De Mesa.

(The next step is to talk to the Department of Trade and Industry, the Department of Finance, and the Philippine National Police, on what possible sanctions will be placed for those who will violate the MSRP suggested by the Secretary.) – Rappler.com