Agri department sees signs of monopoly in rice milling industry – BusinessWorld Online
THE Department of Agriculture (DA) said capacity utilization data are pointing to possible monopolies in rice milling, and signaled measures to bring utilization down to healthier levels.
The measures include reorganizing the Philippine Center for Postharvest Development and Mechanization (PhilMech) to focus more on production-side equipment, leaving the DA the responsibility of producing rice processing systems, it said in a statement.
Agriculture Secretary Francisco P. Tiu Laurel, Jr. said some rice millers are operating at nearly 100% capacity, which he noted was an indicator of “monopolistic conditions.”
“Our target utilization rate is 80% to 85%,” he said, at which level millers can operate with appropriate efficiency.
He said once rice mill usage stabilizes within the target range, PhilMech will be refocused on production-side equipment like tractors and seeders.
PhilMech currently makes large-scale rice processing systems.
“This strategic shift would support the National Food Authority, which has seen its milling and drying capacity significantly diminished since the Rice Tariffication Law of 2019 scaled back its operational role,” he said.
“By focusing on smart utilization rather than unchecked expansion, the DA aims to balance market supply, stabilize rice prices, and protect farmer incomes,” it said.
The Rice Tariffication Law gave rise to the Rice Competitiveness Enhancement Fund, which is financed by rice import tariffs and funds equipment procurement to modernize the rice industry. — Kyle Aristophere T. Atienza
