Agriculture dep’t puts off suggested price cap on rice amid oil woes
Rice is sold at P20 per kilo on the Cebu Capitol grounds as part of the Department of Agriculture (DA) affordable rice program. —(DA CENTRAL VISAYAS/Facebook)
MANILA, Philippines — The Department of Agriculture (DA) is delaying the reduction of the maximum suggested retail price (MSRP) for imported rice next month. This is in light of the escalating tensions in the Middle East.
“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 on Monday.
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Tiu Laurel said that rising oil prices due to the heightened Israel-Iran conflict could have a cascading effect across the agricultural sector.
Although crude oil is not directly used to manufacture fertilizer, the DA said natural gas—a key byproduct of refining crude oil —is essential for producing ammonia. This is a core ingredient in nitrogen-based fertilizers.
The agency added that “rising oil prices also mean higher transportation costs for fertilizers and other agricultural inputs.”
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On the other hand, Tiu Laurel said the DA is still pushing through with setting a price ceiling for imported pork in August. But the final MSRP will be determined closer to the rollout.
“The market is extremely fluid. Any forecast I make now might not be accurate even an hour later,” he added.
/rwd
