THE suggested retail price (SRP) on farm products, particularly rice, will not be imposed, Agriculture Secretary Francisco Tiu Laurel, Jr. assured.

Laurel said they will not suggest price control at the moment since the prices of rice and other agricultural products in international markets are volatile and fluctuating due to El Nino.

The secretary explained the earlier proposals for an SRP was just an idea based on available remedies according to the Republic Act 7581 or the Price Act.

The Price Act Law empowers the DA to stabilize prices of farm products and inputs, including rice, fish, meat, poultry and even fertilizers, in times of emergencies.

But that provision requires implementing rules and regulations to be first put in place before the DA could exercise that power.

“I’m well aware that setting retail prices, even if just suggested, for particular goods tend to be counterproductive, especially when there is ample supply,” he said.

International prices of rice are fluctuating as countries try to increase their rice reserves through importation on concerns of potential drop in harvest due to an expected aggressive El Niño episode.

Laurel disclosed the agency is working double time to ensure ample supply of agricultural products, particularly rice, in the face of a potential prolonged dry spell due to El Niño, and taking steps to mitigate the weather phenomenon’s impact on local production.

Reports from the National Irrigation Administration’s Upper Pampanga Integrated Irrigation System, which provides water to farms in Nueva Ecija, Bulacan and Pampanga, showed sufficient water supply that could sustain strong rice output.

“We’re building up a buffer, largely through importation, to ensure we have ample supply of rice as we await the next harvest starting March.

This should help keep prices stable without government intervention,” he said.

Laurel pointed out that the crafting of the Price Act Implementing Rules and Regulations (IRR) by the newly-created Technical Working Group (TWG) is a clear warning to those who may want to exploit the situation that the DA is empowered by law to go after them.

AUTHOR PROFILE

Cory Martinez