The Department of Agriculture (DA) in the Philippines is setting its sights on lowering the price of imported rice to P49 per kilogram by March. This initiative involves a step-by-step reduction of the maximum suggested retail price (MSRP) over the coming weeks, contingent on stable global rice prices.
DA Secretary Francisco Tiu Laurel Jr. announced that the initial MSRP for imported rice would be set at P58 per kilo, a move aimed at tackling the high prices seen in Metro Manila. This decision follows President Ferdinand R. Marcos Jr.’s earlier action to reduce the rice import tariff from 35% to 15% in July 2023.
Laurel outlined a detailed schedule for the price reductions: by February 5, the MSRP will drop to P55 per kilo, and by February 15, it will further decrease to P52 per kilo. The ultimate goal is to reach P49 per kilo by March 1, provided that international rice prices do not fluctuate significantly.
He noted that the current global price for 5 percent broken rice stands at a maximum landed cost of USD530 to USD550 per metric ton. The phased approach to price reduction is designed to ensure a smooth transition in the market, avoiding any disruption to the rice industry and allowing businesses to adapt without major issues.
Certain rice varieties, such as Japanese black rice, red rice, basmati, and locally produced rice, will not be subject to these MSRP adjustments. Laurel also mentioned that as of the latest data, the price of 5 percent broken rice from Asian exporters ranges from USD413 to USD472 per metric ton, with Vietnam offering the lowest price at USD413.
The DA’s strategy also takes into account the upcoming harvest season in Vietnam and reduced demand from countries like the Philippines and Indonesia, which are expected to contribute to further price declines. This plan will enable traders, retailers, wholesalers, and importers to clear out older, more expensive stocks and renegotiate their supplier contracts.
In addition to the price adjustments, Laurel highlighted the ongoing collaboration with the Department of Trade and Industry (DTI) to develop new rice labeling guidelines. These guidelines will include MSRP-specific labels for different rice types, providing consumers with clearer information once implemented.