Rice Importation Suspension Raises Price Worries in Northern Mindanao
CAGAYAN DE ORO CITY — Local leaders have expressed doubts that the national government’s 60-day suspension of rice importation, set to begin on September 1, will lead to lower rice prices in Northern Mindanao. The rice importation suspension has become a hot topic as community members brace for its impact on the market.
Engr. Franklin Dagcuta, president of the Cagayan de Oro City Rice and Corn Retailers Association and United Market Vendors Association, told officials that this government move may actually push rice prices even higher. He explained that the early announcement of the rice importation suspension prompted retailers to increase their prices despite purchasing rice at lower costs months ago.
Retailers React to Early Government Announcement
“The problem with government is that it announced (the rice import ban) way ahead. This gave retailers reason to mark up their inventory even if these were bought at a lower prices months before,” Dagcuta said in the vernacular. His comments highlight how advance notice can unintentionally influence market behavior, potentially hurting consumers.
Local sources also noted that for the rice importation suspension to succeed without causing price spikes, the government must ensure a sufficient buffer stock before halting imports. Without this, rice availability might tighten, further driving prices upward.
Imported Rice Dominates Local Market Supply
Dagcuta revealed that nearly 99% of the rice sold in Cagayan de Oro City is imported, with only a small fraction sourced from local farmers. The locally produced rice available in the market tends to be premium varieties, usually priced at a minimum of P58 per kilo, making it less accessible to average consumers.
As the rice importation suspension takes effect, harvests from nearby agricultural hubs such as Cotabato, Valencia, and General Santos City are expected to arrive in the city’s public markets starting September 1. These local supplies may help ease the impact but are unlikely to fully replace the imported rice volume.
Government Sets Price Guidelines Amid Suspension
The Department of Agriculture-10’s Agribusiness and Marketing Assistance Division (AMAD-10) has issued a suggested retail price (SRP) of P45 per kilo for rice. Retailers are encouraged to apply a markup of no more than P5 per kilo to meet this guideline.
Dagcuta explained that this SRP directive motivates retailers to seek lower-priced rice options in order to comply. However, he cautioned that the rice importation suspension could complicate efforts to maintain affordable prices, especially if supply tightens.
Looking Ahead: Impact on Consumers and Market Stability
Community members and local leaders remain concerned about how the rice importation suspension will affect everyday consumers in Northern Mindanao. Without proper supply management and monitoring, the risk of price hikes remains significant.
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