DA chief eyes removal of brand labels on imported rice

Agriculture Secretary Francisco Tiu Laurel Jr. on Thursday announced his plan to remove brand labels on imported rice in a bid to combat price manipulation of the grain staple.

"After conducting a series of market visits, we now have reason to believe that some retailers and traders are intentionally confusing Filipino consumers with branded imports to justify the high prices of rice," Tiu Laurel said in a statement.

The Agriculture chief alleged that some industry players are “manipulating the system to inflate prices and exploit Filipino consumers.”

Tiu Laurel is also eyeing the removal of labels such as "premium" and "special" on imported rice, claiming that the labeling are being used to justify inflated prices. 

Nonetheless, the Agriculture chief said that locally-produced rice will be exempted from the plan to protect Filipino farmers and traders.

“Importing rice is not a right but a privilege,” Tiu Laurel said, adding that “if traders are unwilling to follow our regulations, we will withhold permits for rice importation.”

Citing data gathered from retailers, traders, and importers, the DA chief said that a markup of P6 to P8 per kilo from the landed cost of imported rice is sufficient to profitably sustain the operations of all parties involved in the supply chain. 

He said that, for example, if rice is purchased from Vietnam at an all-in cost of P40 per kilo, the consumer price should not exceed P48 per kilo.

Tiu Laurel added that the DA is also considering several measures to address rice price volatility, including invoking a food security emergency under the amended Rice Tariffication Law, which would allow the release of buffer stocks from the National Food Authority (NFA) to stabilize prices. 

Moreover, the Agriculture chief is exploring the option of allowing government corporations like Food Terminal Inc., to import significant quantities of rice to compete directly with private importers, and also ordered the DA legal division to study whether provisions of the Consumer Price Act could be activated deal with seeming acts of profiteering.

Despite President Ferdinand Marcos Jr.’s reduction of the rice tariff to 15% from 35% in July, prices of some rice brands have remained stubbornly high, frustrating both the government and consumers, according to the DA.

With this, Tiu Laurel said he is eyeing to tap the Department of Finance, particularly the Bureau of Internal Revenue, to audit the financial records of rice traders to ensure compliance with fair pricing practices as well as the Department of Trade and Industry to assist in monitoring prices of rice in markets and groceries.—AOL, GMA Integrated News