DA to finalize rice branding issues in January

Agriculture Secretary Francisco Tiu Laurel Jr. will lead a meeting on Jan. 3 that will finalize a plan to remove branding on rice after he said that retailers and traders are intentionally confusing consumers with premium rice imports to justify the high prices of the grains.

- By BELLA CARIASO

Agriculture Assistant Secretary and spokesman Arnel de Mesa said that Tiu Laurel wants to standardize the labeling of rice so that consumers will not be shortchanged by unscrupulous traders.

"We expect that this (new labeling) will be implemented as soon as possible. As a matter of fact, the secretary already called for a meeting to discuss the issue and immediately release guidelines on this," de Mesa said.

De Mesa said that Tiu Laurel personally uncovered during his inspection of various markets in Metro Manila the problem of the branding of imported rice.

"He discovered, during the inspection of a particular imported rice he is very familiar with, that the landed cost of the imported rice is only P40 per kilo but it is sold in the market for more than P60 per kilo. The profit margin is so big," he said.

He added that based on the consultation of the Department of Agriculture (DA) with traders and importers, they have already profited if at least P6 to P8 per kilo will be added to the landed cost of the imported staple.

"If it's (landed cost) P40 (per kilo), the retail price should only be P48, so one of the solutions is to remove the branding on premium and special rice," he explained.

He added that imported rice is classified through the degree of brokenness.

"It's five percent for premium. There are also 15 percent, 25 percent and 100 percent broken, but when sold in the market, it is not being treated as 100 percent broken and instead (it is being treated) by the brand. Traders usually label the rice as premium and special," de Mesa said.

The agriculture official added that in the past, the DA's focus was only regular and well-milled rice as ordinary consumers often buy them since the two are cheaper.

Tiu Laurel said locally-produced rice will be exempted from this rule to protect Filipino farmers and traders.