DA eyes suggested price cap for garlic
The Department of Agriculture is considering a price cap on garlic if high prices will persist. INQUIRER.net stock images
MANILA, Philippines – The Department of Agriculture (DA) might issue a suggested price cap on garlic if elevated retail prices persist.
Still, Agriculture Secretary Francisco Tiu Laurel Jr. said the DA will explore options to resolve this issue without setting a maximum suggested retail price (MSRP) for garlic.
“If industry players do not follow, we will really do it (coming out with an MSRP),” Tiu Laurel said in an interview on Monday.
READ: DTI intensifies price monitoring of rice, basic goods
Tiu Laurel said the agency will meet with concerned industry players to determine if their pricing is reasonable and if they are declaring the correct import costs. He believes that retail prices should range between P100 and P110 a kilogram (kg).
The DA will determine if the P30 profit from selling garlic is reasonable since the cost of importing this commodity is estimated at P80.
Tiu Laurel said it should be easy for the DA to regulate retail prices since 95 percent of garlic sold in public markets is imported.
So far, locally produced garlic retailed from a low of P400 per kg to a high of P500 as of March 27. This was unchanged from the same period a year ago, according to the DA’s price monitoring of Metro Manila markets.
Market vendors sell imported garlic at P130 to P200 per kg, up by as much as 11 percent from P110 to P180 per kg previously.
Issuing an MSRP is among the measures adopted by the DA to tame higher prices of pork and rice in public markets.
Tiu Laurel said this will be the last time that the DA will adjust the imported rice MSRP so as to not affect the local industry, particularly palay farmers.
“I think it is prudent that we stop at P45 MSRP for the next two months until the harvest season is over then we’ll see after that,” he said.
“Traders are afraid to purchase [locally produced palay]at the right price because they believe it will lower the price,” he told reporters.
Effective on Monday, the DA slashed the MSRP of imported rice to P45 per kg from P49 earlier as global rice prices have declined.
This was the fourth reduction since the agency introduced the MSRP for imported rice on Jan. 20. This was initially set at P58 per kg in a move to arrest rising retail prices despite reduced import duties.
In the case of pork, the DA announced an MSRP of P350 per kg for pork shoulder (kasim) and pigue and P380 per kg for pork belly (liempo), as well as P300 per kg for sabit ulo (or the price at which traders sell pork to retailers) effective on March 10. INQ
