The Department of Agriculture (DA) is proposing measures to improve transparency and regulation in the rice market, including stricter labeling requirements and a review of pricing mechanisms, amid concerns over price increases and potential market abuses.
The DA’s proposed reforms include mandatory labeling of rice sacks to provide detailed information about the product. Key details such as the brand, type, percentage of broken grains, origin, importer’s name and address, milling date and retail price will be required.
The proposed measure aims to address issues in the labeling system, where current practices lack transparency, with only prices displayed in many cases.
“Labeling should include the milling date and other important details. This will ensure that consumers know what they are purchasing and help us address the abuse in rice branding, especially with imported rice,” the DA said at the first quarterly meeting of the National Price Coordinating Council (NPCC) Tuesday at the Department of Trade and Industry (DTI) office.
The DA also announced it is working on an omnibus guideline for rice labeling and branding to enforce these standards.
The DA, in coordination with the NPCC, is exploring formula to determine the maximum suggested retail price (MSRP) for rice.
The formula incorporates various indicators such as production levels, farmgate prices, inflation, stock inventories, global market trends, weather outlooks, foreign exchange rates, and fuel prices.
The data will help set thresholds that determine whether the country faces a rice supply shortage or extraordinary price increases, potentially leading to the declaration of a food security emergency.
“We’re considering historical data and other critical factors over the past 3 to 5 years to ensure that we account for all possible scenarios before determining thresholds,” the DA said.
The DA also addressed concerns about profit margins in rice retailing.
Wholesalers currently sell rice with 5-percent broken grains at an average price of P45 to P50 per kilogram. Retailers add a markup of P10 to P12, raising retail prices significantly.
The DA is proposing stricter regulation of these margins to prevent excessive price hikes.