The Department of Agriculture (DA) on Thursday flatly ruled out the imposition of a suggested retail price (SRP) on farm products, especially on rice.
Agriculture Secretary Francisco Tiu Laurel Jr. dismissed the idea out of hand, saying the whole thing was a mere idea based on available remedies under the Price Act.
“We’re not doing it. The price of rice and other agricultural products in international markets like Thailand and other countries are volatile and fluctuating due to El Niño. We’re not suggesting to control prices at the moment,” Laurel said in a statement.
He said the Price Act does empower the agency to stabilize farm product prices and inputs including rice, fish, meat, poultry even fertilizers in extreme situations.
However, Laurel said the same legislation requires the prior adoption of implementing rules and regulations (IRR) before its terms may be exercised.
“I’m well aware that setting retail prices, even if only suggested for particular goods, tend to be counterproductive, especially when there is ample supply,” Laurel explained.
“In most cases, farmers bear the brunt of a price limit because traders need only lower their purchase price to keep their margins. Consumers also don’t benefit in such a situation. It could also fuel price speculation and hoarding that evolves into another problem altogether,” Laurel added.
Nevertheless, he said a technical working group is crafting the Price Act IRR for use against those who may want to exploit the existing price dynamics affecting agri goods.
“We will not hesitate to use the powers and remedies at our disposal to ensure that our farmers and consumers are amply protected against those who may want to exploit any supply shortage,” Laurel said firmly.
The DA chief also reiterated the international price of rice frequently change as countries try to increase their rice reserves through imports on fears of a drop in harvest volumes due to an expected strong El Niño episode.
Laurel said the DA 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 mitigate its impact on farm production.
But thus far, he said, the National Irrigation Administration’s Upper Pampanga Integrated Irrigation System that waters the farms in major rice producing provinces of Nueva Ecija, Bulacan and Pampanga provides sufficient water supply that could sustain strong rice output down the line.
“We’re building up a buffer, largely through importation, to ensure we have ample supply of rice as we await the next harvest starting March. This should help keep prices stable without government intervention,” Laurel said.
