The Department of Agriculture (DA) had earlier planned to reduce the MSRP for 5 percent broken imported rice from P45 to P43 per kilogram starting July 1. The rollback will now be delayed by “a month or two,” Laurel said, as the agency monitors growing uncertainty in global commodity markets.
“We’ll likely delay the rollout by a month or two to gain a clearer picture of where global prices are heading,” he told reporters.
Laurel pointed to the escalating Israel-Iran conflict following recent U.S. airstrikes on Iranian nuclear facilities, raising the risk of a broader regional crisis. He warned that a further spike in global oil prices could ripple across the agricultural sector.
Although oil isn’t used in fertilizer production, natural gas—often tied to oil prices—is essential in making ammonia, a critical component in nitrogen-based fertilizers. Increased fuel costs also threaten to drive up freight and transport prices.
Oil prices surged after Iran threatened to close the Strait of Hormuz, a vital shipping route for global crude supplies.
The DA will still push through with its plan to set an MSRP for imported pork in August, but pricing details remain under review.
“The market is extremely fluid. Any forecast I make now might not be accurate even an hour later,” Laurel said.
He also noted that while current fertilizer needs are covered by existing stocks, next year’s costs may rise. Fisherfolk and importers are already seeing higher input and logistics costs due to oil market instability. —Ed: Corrie S. Narisma
