In a move to alleviate the financial burden on consumers, the Department of Agriculture (DA) in the Philippines has announced a reduction in the maximum suggested retail price (MSRP) for 5 percent broken rice in Metro Manila, dropping it from PHP55 to PHP52 per kilogram. This adjustment, effective from February 15, follows a global trend of declining rice prices, particularly noted in major rice-exporting countries like India, Thailand, and Vietnam. As of January, the price for 5 percent broken rice from India stood at USD425.4 per metric ton, Vietnam at USD416 per metric ton, and Thailand’s 25 percent broken rice at USD458.7 per metric ton, according to the Food and Agriculture Organization of the United Nations.
Assistant Secretary Arnel de Mesa, the DA spokesperson, explained that this gradual reduction in MSRP allows retailers to manage their existing stock, purchased at higher prices, and to renegotiate terms with traders and importers. He emphasized that the approach was not abrupt, allowing for a smoother transition in pricing. The DA expects full compliance with the new PHP52 per kilogram MSRP within the next two weeks.
The MSRP for 5 percent broken rice had previously been set at PHP58 on January 20 and was reduced to PHP55 on February 5, with positive feedback and adherence from local markets. The DA has set a target to further decrease the MSRP to PHP49 per kilogram by March.
Current market prices in Metro Manila, as reported by the DA’s price watch, show imported premium rice ranging from PHP48 to PHP58 per kilogram, and local premium rice from PHP46 to PHP61 per kilogram. Prices for imported regular-milled to well-milled rice range from PHP38 to PHP46 per kilogram, while local varieties are priced between PHP35 and PHP54 per kilogram.
The imposition of the MSRP was a response to high retail rice prices, despite reduced tariffs on imported rice from 35 percent to 15 percent, falling global prices, and stable domestic rice stock. The Philippine Statistics Authority reported that rice inflation had been above the government’s 4 percent target from July 2023 to November 2024, peaking at over 20 percent in several months of 2024.
In addition to adjusting the MSRP, the DA has declared a food security emergency for rice and is working to ensure the availability of affordable rice options through Kadiwa ng Pangulo centers and kiosks located in public markets and railway stations across Metro Manila.