DA will not recommend SRPs amid inflation growth, spox says

The Department of Agriculture said it will not recommend a retail price ceiling or suggested retail prices (SRPs) on rice despite the continued double-digit inflation growth in the grain staple.

In a news forum on Saturday, Agriculture Assistant Secretary and spokesperson Arnel de Mesa, retail prices of rice are declining month-on-month despite the "year-on-year" inflation rate of rice. 

"Wala kaming plano na magkaroon ng price cap or SRP kasi may mabigat ding epekto 'yan pagdating ng panahon (We do not have a plan to impose price cap or SRP because it might have an ill effect in the future)," he said. 

He noted that the prices of rice dropped from last month’s P52 per kilo to around P50 to P49 per kilo this month.

De Mesa cited the Philippine Statistics Authority’s projection that rice inflation will continue its upward trajectory until July, but it will gradually slow down in August. 

He said Marcos' promise to bring down the retail price of rice to P20 per kilo remains as the DA's "aspiration and goal."

However, the goal remains unreachable at this time, he noted.

"[But] our plans and activities are geared towards reducing the cost to produce and for us to be competitive in the future," he added.

Last year, President Ferdinand R. Marcos Jr. issued Executive Order 39, which mandated a price cap of P41 per kilogram for regular-milled rice and P45 per kilogram for well-milled rice.  

The price ceiling came after the surge in retail prices of rice in local markets.

The order became effective from 5 September until 4 October.

Despite the order, the rice inflation still accelerated in September 2023 to 17.9 percent and continued its upward trajectory until early this year.

PSA chief Dennis Claire Mapa earlier said the rice inflation rate accelerated to 24.4 percent in March, faster than the 23.7 percent logged in February.

Mapa noted that the continued high double-digit increase in rice inflation was due to a low base effect seen in January to July last year when inflation for agricultural produce was relatively low.

"Our expectation is it will increase strongly until July because of [low] base effect unless there is an intervention that will happen in the market that will bring down prices," he said in a press conference over the weekend.

"We expect that in August it will gradually slow down," added Mapa.