Agriculture Secretary Francisco P. Tiu Laurel Jr. announced on Friday that the Department of Agriculture will gradually lower the maximum suggested retail price for imported rice in the coming weeks, with the MSRP potentially sliding below P50 a kilo by March if global prices remain stable.
The DA initially set the MSRP, initially implemented in Metro Manila where rice prices remain elevated, at P58 a kilo for prices of imported rice to reflect the decline in world prices and the decision of President Ferdinand Marcos Jr. to slash tariff to 15 percent from 35 percent, effective July last year.
Japanese black rice, red rice, basmati, imported malagkit and locally produced rice are exempted from the MSRP.
“By February 5,” Secretary Tiu Laurel told reporters following an inspection at the Cartimar Market, Pasay City, “the MSRP on imported rice will be brought down to P55. Then, by February 15, we will lower it further to P52. By March 1, hopefully, we will break P50 per kilo, with the MSRP at P49, as long as world prices remain as they are today—a maximum landed cost of USD530 to USD550 per metric ton for 5 percent broken rice.”
While some stakeholders have called for a more immediate and substantial reduction, Tiu Laurel explained that the government aims to avoid destabilizing the rice industry.
“That is the main reason why it has to be a drawdown,” the DA chief said. “When we declared the MSRP at P58, a lot of people have criticized me as someone living in another planet. But the truth is we have a plan. You cannot just shock the market… a lot of people will go out of business, and many will resist our efforts, and that is what we are trying to avoid.”
Tiu Laurel pointed out that the imported rice currently being sold in the market was still purchased at around USD700 per metric ton, according to data from the Bureau of Customs.
As of Wednesday, 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. Vietnam has quoted the 25% broken variety at a price of USD387 per metric ton. These prices exclude freight and other costs, and tariff.
Industry analysts are optimistic that rice prices will ease further with the onset of Vietnam’s harvest season and reduced pressure from countries like the Philippines and Indonesia, which contributed to high demand early last year due to concerns over El Niño’s impact on rice production.
By announcing the planned MSRP reductions early, Tiu Laurel said the DA aims to give rice industry players—traders, retailers, wholesalers, and importers—a window for an orderly transition. This would allow them to liquidate higher-priced stocks and renegotiate contracts with suppliers.
The agriculture secretary also mentioned that once the rice labeling guidelines, which are being worked out with the Department of Trade and Industry (DTI), are finalized, “we will have MSRP per type of rice.”
Secretary Tiu Laurel expressed his gratitude to the DTI, the Philippine National Police, and local government units, especially Pasay City Mayor Imelda Calixto-Rubiano, for their assistance in monitoring rice prices. He also thanked netizens for their efforts in helping the DA track prices by submitting photos through the #DABantayPresyo initiative. ### (photo by Joseph Henry Elamparo, DA-AFID)
