Pork, onion sellers ordered to explain MSRP non-compliance

THE Department of Agriculture (DA) said it will issue Notices to Explain to retailers who failed to comply with the department’s maximum suggested retail price (MSRP) for the commodities, Agriculture Assistant Secretary Genevieve V. Guevarra said on Tuesday.

During a price monitoring visit to Mega Q Mart in Quezon City, Ms. Guevarra said some retailers, particularly onion sellers, remain non-compliant with the MSRP, leading to the orders to justify their pricing.

According to DA price monitors, from Dec. 8 to 13, the average price of imported red onion in Metro Manila was P213.87 per kilo, well above the P150 per kilo MSRP set by the DA.

Prices of pork belly (liempo) and pork shoulder (kasim) also exceeded the MSRP, averaging P392.92 and P341.12 per kilo, higher than the prescribed P370 and P330 per kilo, respectively.

Ms. Guevarra said the DA is seeking to trace prices at every stage of the supply chain to determine whether higher retail prices are justified.

“Retailers say they have many expenses, so we want to know what these are to (determine) whether the current prices of basic commodities are reasonable,” she said.

She said the DA will consolidate data from non-compliant retailers and trace their sources, including distributors, particularly in cases where the department suspects profiteering, hoarding, or cartel behavior.

“We need to talk to all players in the value chain before we conclude whether this is a concerted or habitual effort,” Ms. Guevarra said.

Retailers issued notices will be given three days to respond, detailing their sources, landed costs, markups, and operating expenses.

While there is no penalty for failing to comply with the MSRP, Ms. Guevarra said non-compliance may be used as evidence of profiteering if excessive profits are established. 

The DA said it will conduct similar monitoring exercises and issue more Notices to Explain in other public markets, especially as demand is expected to rise ahead of the holidays.

“During the Christmas season, we usually see a surge in buying as families prepare for Noche Buena. That’s why we need to intensify monitoring and ensure consumers are protected,” she said. — Vonn Andrei E. Villamiel