The Department of Agriculture (DA) has assured rice retailers and traders that the government’s P50 per kilo price ceiling on 5 percent broken imported rice remains fair and still allows decent margins across the supply chain, even as it enforces the directive of President Ferdinand Marcos Jr. Ferdinand Marcos Jr.
Agriculture Secretary Francisco P. Tiu Laurel Jr. told reporters after an inspection of rice prices in Paco Public market on Tuesday, May 19, that the cap was carefully calibrated using landed import costs of P37-P38 per kilo, leaving enough room for logistics, shrinkage, and reasonable markups from importer to trader to retailer.
He stressed that the intent of the policy is price stability, not squeezing out business, and warned against excessive markups while global rice prices remain tight and politically sensitive.
“At a landed cost of around P37 to P38 per kilo, there is still a workable margin across the value chain,” Tiu Laurel said. “We are ensuring consumers get affordable rice while traders and retailers remain viable. The goal is balance, not disruption.”
The DA chief further clarified the pricing logic, saying the structure already accounts for costs beyond import value, including transport, handling losses, and market variability.
“For the entire value chain—from importer to trader to retailer—the markup should only be around P10. If landed cost is P38, retail should be about P48. We set it at P50 to allow for hidden costs like logistics and possible spoilage. At P50, everyone in the chain should still earn,” he said.
Tiu Laurel urged everyone’s cooperation during these challenging times. “No one should be profiteering in the whole value chain, especially during this period. The price cap will run for 30 days, and we hope everyone cooperates because the country is struggling. We are not saying traders should not earn—just not excessively,” he added.
Responding to concerns from market players, Tiu Laurel said the DA will actively help retailers comply and access fairly priced imported rice. He said field teams will be deployed nationwide to monitor implementation and assist stakeholders.
“The DA will be going around markets across the Philippines daily and weekly,” he said. “Retailers can approach our teams directly. We are distributing pamphlets with implementation guidelines and contact details so concerns can be addressed quickly. We want smooth implementation.”
The DA said the intervention is meant to stabilize retail rice prices while maintaining a functioning supply chain under President Marcos’s food security program. ### (By DA – OSEC Comms & photo by Alan Jay Jacalan, AFID)
