Metro Manila (CNN Philippines, January 11) – Agriculture Secretary Francisco Tiu Laurel, Jr. on Wednesday said that the agency was not keen on imposing a suggested retail price (SRP) on agricultural products, particularly rice.

“We’re not doing it. Prices of rice and other agricultural products in international markets like Thailand and other countries are volatile and fluctuating due to El Nino. Hence, we’re not suggesting to control prices at the moment,” Laurel said.

In an interview last week, Department of Agriculture (DA) spokesperson Arnel De Mesa said the agency was considering SRP on rice as the country grapples with a 14-year high inflation on the commodity at 19.6%, the highest since March 2009.

Rice retailers have assailed the proposed imposition of an SRP, especially as some have yet to recover from the price ceiling imposed on the commodity in September last year and lifted in October.

WATCH: Rice retailers oppose plan to impose SRP on rice

Laurel said the earlier proposals for the imposition of an SRP were just ideas based on remedies according to the Price Act, which allows the DA to stabilize commodity prices during emergencies.

“I’m well aware that setting retail prices, even if just suggested, for particular goods tend to be counterproductive, especially when there is ample supply,” he said.

“In most cases, farmers bear the brunt of a price limit because traders will only lower their purchase prices to keep their margins,” Laurel said. “Consumers also don’t benefit in such a situation. It could also fuel price speculation and supply hoarding that evolves into another problem altogether.”

Meanwhile, he said the agency was setting up a rice buffer stock amid the effects of an extended El Niño to keep prices stable before the next harvest season starts in March.