UNSCRUPULOUS retailers will now be penalized if they go beyond the set suggested retail prices (SRP) by the Department of Agriculture for various commodities starting today (Monday) as it seeks to curtail profiteering in the market.
In a statement, the DA said it will partner with the the Departments of Trade and Industry (DTI), the Interior and Local Government (DILG) and local government units (LGUs) in Metro Manila in implementing the SRP and imposing sanctions on erring retailers.
The SRP which covers nine food items will only be applicable to markets in Metro Manila. The DA has set the SRP for these products: Pork (pigue/kasim) at P190 per kilogram; Whole, dressed chicken at P130 per kg; Brown/raw sugar at P45 per kg; refined sugar at P50 per kg; Bangus (cage-cultured) at P162 per kg; Tilapia (pond-cultured) at P120 per kg; Imported galunggong at P130 per kg; Imported garlic at P70 per kg; locally produced garlic at P120 per kg; and imported red onions at P95 per kg.
“We will conduct regular monitoring of these agri-fishery commodities to protect consumers against hoarding and profiteering of unscrupulous traders and cartels, who manipulate for their advantage the supply, distribution, marketing and prices of basic agri-fishery goods,” the DA said.
The DA issued Administrative Circular 01 of 2020 on February 20, formalizing the implementation of the SRP on the concerned agricultural products. The AC takes effect on February 24 after it was published in two national newspapers last week.
In AC 01, the DA argued that it is the responsibility of the government “to provide effective and sufficient protection to consumers against hoarding, profiteering and cartels with respect to supply distribution, marketing and pricing of basic necessities and prime commodities.”
The DA added that the implementation of the SRP was borne out of the dialogue and consultations with concerned stakeholders.
Certain sectors of the agriculture sector, such as hog growers and poultry raisers, have been lamenting the disconnect between the farm-gate price and retail prices of commodities.
For example, both farm-gate prices of broiler and live hogs have gone down in months due to a confluence of events such as oversupply and dampened demand for pork, but retail prices have remained elevated.
Under Republic Act 7581 or the Price Act, the DA has the power to implement a suggested retail price anytime “for the information and guidance of producers, manufacturers, traders, dealers, sellers, retailers and consumers.”
The DA said that “in setting up the SRP for selected food items, we will ensure the availability of basic necessities and prime commodities at reasonable prices at all times, without denying legitimate businesses a fair return on their investments.”
Under the law, the DA has the power to investigate anyone that violates it and could impose sanction of no less than P1,000 nor more than P1 million on erring traders or retailers.