MANILA — The Department of Agriculture is considering imposing a price ceiling on imported rice as rising global tensions drive up shipping and production costs, raising concerns over possible profiteering in the local market.

Agriculture Secretary Francisco Tiu Laurel Jr. said the agency is evaluating a proposed cap of around P50 per kilo for imported rice to help stabilize retail prices while protecting farmgate prices of palay.

“We are studying the imposition of a price cap on imported rice, possibly P50 per kilo,” Tiu Laurel said.

He added that the department is currently assessing the legality of implementing such a measure and, if allowed, will endorse it to Ferdinand Marcos Jr. as part of a broader response to the impact of rising oil prices.

A similar price ceiling on locally produced rice is not being considered at this time, as the DA warned that early intervention could negatively affect farmers who are currently benefiting from improved palay prices during the ongoing harvest.

“We may impose a price cap on local rice after the harvest to avoid profiteering,” he said.

The agency’s move comes as geopolitical developments continue to influence global commodity markets, particularly with tensions involving Iran, the United States, and Israel affecting oil supply routes such as the Strait of Hormuz. Higher oil prices have led to increased costs for fertilizer, fuel, and freight.

According to the DA, freight costs have already doubled, pushing the landed cost of the commonly imported DT8 rice variety to nearly $500 per metric ton.

Despite these rising expenses, Tiu Laurel noted that some retail prices have reached P60 to P65 per kilo, which he described as “bordering on profiteering.”

To help ease prices, the DA has instructed state-run firms Food Terminal Inc. and Planters Products Inc. to sell rice at lower rates of P45 and P48 per kilo. Distribution has started in Metro Manila and may be expanded to other areas, including Southern Luzon and Cebu.