The decision to set a maximum suggested retail price (MSRP) of P58 per kilo for imported rice is alarmingly high and has drawn immediate scrutiny from lawmakers and experts. Former Agriculture Secretary and Federation of Free Farmers Chairman Leonardo Montemayor stated in an interview with Radyo Pilipino that the MSRP should be closer to P51.
This stark difference raises serious concerns about the integrity of pricing in the rice industry. Recent data shows that the actual landed cost of imported rice ranges between P35 and P39 per kilo. Even after accounting for logistics, packaging, and reasonable mark-ups, it is difficult to justify a maximum price of P58. Many argue that retail prices should not exceed P49 per kilo.
Congressmen have also expressed disbelief at the proposed P58 MSRP. Rep. Joey Salceda remarked, “Diyos ko ang taas nun (My God that’s so high),” reflecting the frustration of Filipino families struggling to afford basic sustenance.
Montemayor suggests imposing a maximum suggested profit margin instead of a maximum retail price. This approach targets importers and wholesalers who are reportedly pocketing an estimated P13.5 billion in windfall profits. Allowing a few major players to control rice imports while benefiting from reduced tariffs and high retail prices prioritizes profits over people.
The government needs a wake-up call. Structural reforms are necessary to ensure lower prices and protect consumers from exploitation. A transparent pricing framework that prioritizes consumers and farmers is essential. The Committee on Food Security must act decisively to hold those responsible for setting these prices accountable. A P58 per kilo cap on rice is impractical and a betrayal of Filipino families. Sensible pricing that reflects market realities is crucial for a sustainable and equitable system.