MANILA – The Department of Agriculture (DA) assured rice traders and retailers that the government’s P50 per kilo price ceiling on 5 percent broken imported rice would still provide reasonable earnings across the supply chain.

Agriculture Secretary Francisco P. Tiu Laurel Jr. made the assurance after inspecting rice prices at the Paco Public Market on May 19, saying the cap imposed under the directive of President Ferdinand Marcos Jr. was based on computed landed import costs ranging from P37 to P38 per kilo.

According to Tiu Laurel, the pricing structure takes into account expenses such as logistics, handling losses, and retailer markups while ensuring rice remains affordable for consumers.

“At a landed cost of around P37 to P38 per kilo, there is still a workable margin across the value chain,” Tiu Laurel said. “We are ensuring consumers get affordable rice while traders and retailers remain viable. The goal is balance, not disruption.”

The agriculture chief said the government does not intend to hurt businesses but instead seeks to stabilize prices amid tight global rice supply and rising concerns over food costs.

He added that the allowable markup from importers to retailers should only be around P10 per kilo.

“For the entire value chain—from importer to trader to retailer—the markup should only be around P10. If landed cost is P38, retail should be about P48. We set it at P50 to allow for hidden costs like logistics and possible spoilage. At P50, everyone in the chain should still earn,” he said.

Tiu Laurel also called on stakeholders to avoid excessive profit-taking during the implementation of the temporary price cap, which will remain in effect for 30 days.

“No one should be profiteering in the whole value chain, especially during this period. The price cap will run for 30 days, and we hope everyone cooperates because the country is struggling. We are not saying traders should not earn—just not excessively,” he added.

The DA said it would deploy field teams to markets nationwide to monitor compliance and assist retailers in sourcing imported rice at fair prices.

“The DA will be going around markets across the Philippines daily and weekly,” Tiu Laurel said. “Retailers can approach our teams directly. We are distributing pamphlets with implementation guidelines and contact details so concerns can be addressed quickly. We want smooth implementation.”

The agency said the intervention forms part of the Marcos administration’s food security program aimed at stabilizing rice prices while maintaining a functioning supply chain.