16/01/2025
‘Saang planeta galing ang ₱58?’: House leader slams DA over ‘unrealistic’ rice price ceiling, calls it a ‘disservice to consumers’
A House leader on Wednesday criticized the Department of Agriculture (DA) led by Sec. Francisco "Kiko" P. Tiu Laurel Jr. for setting the maximum suggested retail price (MSRP) for rice at ₱58 per kilo, calling the figure “unrealistic” and “a disservice to consumers.”
Deputy Majority Leader and Iloilo 1st District Rep. Janette Garin expressed her frustration during the hearing of the Quinta Comm, also known as the Murang Pagkain Supercommittee, chaired by Albay 2nd District Rep. Joey Sarte Salceda.
Garin accused the DA of failing to address key issues in the rice supply chain that have driven up prices. The panel decided to invite Laurel to the next hearing.
“Bakit naman si DA may MSRP na ₱58, saang planeta ito nanggaling, Mr. Chair?” Garin said during her interpellation, stressing that the MSRP should have been lower after the price of regular milled rice dropped.
Salceda questioned DA Undersecretary Asis Perez on the basis of the P58 per kilo MSRP.
“Diyos ko ang taas nun,” said Salceda nothing that the cost of imported rice has gone down to between P44 and P47, while the buying price for palay (unmilled rice) has fallen as well.
Garin said that in an inspection and consultation with the wholesalers in Bulacan, “it was announced in the media by no other than Sec. Kiko Tiu Laurel together with the DA family that they will bring down the price of rice to P45 to P49, parang P49 yung premium.”
Garin stressed that this did not happen.
Sultan Kudarat Rep. Honacio Suansing Jr., who was present in the said meeting, agreed with Garin.
“We all agree, the rice miller there, importers, traders that we will lower the price of rice to P40 and the supply is unlimited. Tapos na tayo dapat ‘dun, in NCR (National Capital Region) area dapat marami ng P40 per kilo na bigas na binibigay sa Kadiwa and other outlets ng DA that is the agreement last December,” Suansing said.
The price of regular rice is being sold at P37 to P38 in the market.
“How can we control the price of rice when the agency that is supposed to guide us is pe***ng it at a high price?” Garin asked.
Garin cited reports showing that the landed cost of imported rice ranged from P35 to P39 per kilo, significantly lower than the DA’s MSRP.
Even with logistics and markups, she argued, rice should not exceed P45 to P49 per kilo at retail.
“Kung ang landed cost ay P35, maibebenta mo siya ng P42 to P43. ‘Yung iba namang landed cost ay P39, maibebenta mo siya ng P47 to P48. Pero siyempre, ‘pag may damage, logistics, aakyat siya, pinakamataas P49,” she explained.
Perez defended the P58 MSRP as part of a pilot program for Metro Manila, stating that it was designed to address higher rice prices in the area, reportedly ranging from P62 to P64 per kilo.
Perez said the P58 price “is based on the landed cost of imported rice, plus a reasonable mark-up for all those involved in the distribution chain, mahaba po ‘yang chain na yan.”
“Linawin ko lang, Mr. Chair, na ‘yung MSRP is a pilot program that will implement only in Metro Manila kung saan may nakikita kami mga presyo na P62, P64, P60,” Perez explained.
However, Garin dismissed this explanation, calling it a “wrong solution” that fails to tackle the root causes of high rice prices.
“No, I’m sorry, Mr. Chair. I’m sorry, Usec Asis, but that is a wrong solution. Wido-wido ‘yun. How do we resolve the problem of mahal na bigas? Magkano ang landed cost? Magkano ang kapital ng local farmer? Magkano ang pwedeng ipatong ng mga dadaanan?” she argued.
Garin also accused the DA of neglecting its responsibility to monitor and regulate the supply chain, alleging that collusion among traders and monopolistic practices among retailers were inflating prices.
She reiterated her call for the National Bureau of Investigation (NBI) to probe the matter.
“Apparently, there’s a flow of at least five traders before the rice reaches the actual retailer. And I remember, Mr. Chair, I previously filed a motion directing the NBI to look into the traders in between because the collusion is happening here. We can’t just turn a blind eye to this,” she said.
The seasoned legislator pointed to lower rice prices in Mindanao, where rice was reportedly sold for P37 to P45 per kilo, with premium varieties capped at P50.
“Ang katanungan nito, ba’t nagagawa doon sa Mindanao? Bakit dito hindi?” Garin asked.
The Iloilo lawmaker criticized the DA’s method for setting the MSRP, arguing that it was based on inflated market prices rather than actual production costs and reasonable margins.
“Bumalik tayo sa wholesalers, nagsalita ang ibang traders, nagsalita ang retailers, pinuntahan natin ang Bulacan. At ang ipinapakita doon, it was Secretary Laurel who mentioned P45 to P49 max, Mr. Chair. In other words, the basis of the MSRP is wrong. And it’s opening the possibility of abuse,” Garin said.
Garin concluded by holding government officials accountable for what she described as inaction on systemic issues in the rice market.
“Collusion among the traders, monopoly among the retailers in the market, and our government officials who are supposed to look into this not really doing their job. These are the problems we need to solve,” she declared.
The Quinta Comm is tasked with addressing the systemic challenges of soaring food prices, smuggling, price manipulation, and hunger—issues that have left millions of Filipinos struggling to access affordable and secure food.
Formed under House Resolution (HR) No. 254, introduced by Speaker Ferdinand Martin G. Romualdez, this supercommittee brings together five key committees to identify gaps in government programs and hold accountable those responsible for market abuses.
The joint panel is composed of the Committees on Ways and Means, Trade and Industry, Agriculture and Food, Social Services, and the Special Committee on Food Security.
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