DA to Delay Lowering of Imported Rice Max SRP

The Department of Agriculture (DA) is holding off its plan to reduce by next month the maximum suggested retail price (MSRP) of imported premium rice by P2 per kilo, citing market volatilities due to the escalating conflict in the Middle East.

- By JASPER ARCALAS

"We'll likely delay the rollout by a month or two to gain a clearer picture of where global prices are heading," Agriculture Secretary Francisco Tiu Laurel Jr. said yesterday.

He earlier announced a cut in the MSRP on imported rice (five percent broken) to P43 per kilo from the present P45 per kilo beginning July 1.

The DA chief said he decided to defer the imported rice MSRP reduction because of heightened global geopolitical risks following the US airstrikes on three nuclear sites in Iran, a development that threatens to expand the Israel-Iran conflict further across the region.

The Middle East remains a major source of global oil supply, the DA noted. Any price movements in the global oil market would have an impact on agricultural planting inputs particularly fertilizer, according to the DA.

“Although crude oil is not directly used to manufacture fertilizer, natural gas – a key byproduct of oil refining – is essential for producing ammonia, a core ingredient in nitrogen-based fertilizers,” the DA said.

“Rising oil prices also mean higher transportation costs for fertilizers and other agricultural inputs,” it added.

Oil prices have surged in recent days, particularly after Iran threatened to close the Strait of Hormuz, a critical chokepoint for global crude shipments.

Tiu Laurel also said the DA still plans to introduce an MSRP for imported pork in August, although the final pricing would be determined closer to the rollout.

“The market is extremely fluid. Any forecast I make now might not be accurate even an hour later,” Tiu Laurel said.

He warned that surging oil prices could have a cascading effect across the agricultural sector.

“Fisherfolk are already feeling the pinch from higher fuel prices, while farmers could see increased fertilizer costs next year, although the current planting season is covered by existing DA-procured supply,” he said.