Philippines : Price council to extend P50/kg price cap on imported rice by 60 days
The Philippines’ National Price Coordinating Council recommended extending the ₱50/kg price ceiling on imported premium rice by 60 days, citing its success in easing rice inflation. Meanwhile, the government is monitoring water shortages that threaten wet-season rice planting and domestic production.
The Department of Agriculture (DA) said the National Price Coordinating Council (NPCC) has recommended extending by another 60 days the P50-per-kilogram price ceiling on imported premium 5-percent broken rice, saying the measure has helped temper rice inflation.
Department of Agriculture assistant secretary Arnel de Mesa said the NPCC adopted the DA’s proposal during its June 16 meeting and endorsed the recommendation to President Ferdinand Marcos Jr. for approval.
“We have to carefully balance this to ensure prices do not increase,” De Mesa said.
Marcos imposed the temporary P50-per-kilogram ceiling on imported premium 5-percent broken rice in May under Executive Order No. 118 to curb excessive retail prices despite easing global rice costs. The measure, initially effective for 30 days, replaced the DA’s maximum suggested retail price scheme for the same rice variety, making the cap mandatory.
De Mesa said rice inflation remains elevated at 15 percent, although lower rice prices have helped moderate overall inflation.
“Rice accounts for about 1.05 percentage points of the overall 6.4-percent inflation rate. We can see that the price cap has had an effect because rice inflation was tamed and dropped,” he said.
De Mesa said the NPCC based its recommendation to extend the price cap for another 60 days on its positive impact in keeping retail prices in check.
The DA said discussions are continuing on how officials will implement the proposed extension alongside other rice pricing measures expected to take effect this month.
De Mesa also said the government is monitoring domestic rice production as water shortages threaten the ongoing wet-season planting. He said farmers left about 20,000 hectares unplanted in May after irrigation authorities advised against planting because of insufficient water supply. The wet-season cropping calendar has also been delayed in some areas due to limited irrigation water.
The DA said it is coordinating with concerned agencies to minimize the impact of water shortages on palay production while ensuring adequate rice supply and stable prices.
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Source : Manila Standard
