The government is studying imposing a suggested retail price to prevent the increase of rice prices amid the expected impact of El Nino weather phenomenon.

"We are studying the imposition of the suggested retail price, based on the Price Act, in case the price of rice will spike," Assistant Secretary. Arnel de Mesa, Department of Agriculture spokesman, said in a radio interview on Saturday.

de Mesa said there will be consultations with stakeholders, consumer groups, producers, traders and millers to discuss the right suggested retail price.

"It depends on many factors, we need to look at the composition of the producers group, how the rice was produced until it become milled rice and then on the trader side, what are their expenses in the warehousing, billing, drying, and the expenses of retailers, then compare it and determine the price range," he said.

De Mesa stressed the need to import rice although he noted that the Department of Agriculture does not yet see the possible increase of rice price to P60 per kilo from the prevailing price of rice for regular and well milled rice of P52 per kilo.

"What is important is the arrival of imported rice, especially the importation from India," he said, noting that India provides the cheapest rice.

As the country's inflation rate slowed down to 3.9 percent in December 2023, the Philippine Statistics Authority (PSA) noted that rice inflation in the last month of previous year "is the highest since March 2009."

According to the National Economic Development (NEDA) the rice inflation rose to 19.6 percent in December 2023 from 15.8 percent in November 2023.

"It was also the most significant contributor to December 2023’s inflation with 1.7 percentage points (ppt), followed by food and beverages services and housing rentals with 0.5 ppt each," it stated. Robina Asido/DMS