P49 per kilo price cap for imported rice takes effect March 1
MANILA, Philippines — Imported rice in Metro Manila markets will be subject to a price cap of P49 per kilogram starting Saturday, March 1.
This marks the fourth phase of the Department of Agriculture’s (DA) pilot initiative, which involves lowering the maximum suggested retail price (MSRP) for 5% broken imported rice every two weeks, beginning January 20.
The DA aims to reduce the high cost of rice in Metro Manila, affecting both imported and locally produced rice.
By imposing a price cap on imported rice, the government hopes to encourage retailers to lower prices on local rice as well, fostering competition between the two.
Despite these efforts, the DA’s price monitoring as of Wednesday, February 26, found that some retailers continue to sell special imported rice at prices as high as P62 per kilogram in markets. The prevailing price, however, is P58 per kilogram.
Locally produced rice is slightly more expensive, with special-grade varieties still reaching up to P60 per kilogram, and in some cases, as high as P63 per kilogram.
For imported premium rice — defined as rice with no more than 5% broken kernels — the prevailing price has generally remained within the current ceiling of P52 per kilogram.
However, the DA noted that some retailers continue to charge as much as P58 per kilogram for premium imported rice.
Similarly, premium-grade local rice prices still hit P61 per kilogram, though most markets sell it for around P55 per kilogram.
The P49 per kilogram price cap is based on the DA’s estimate that, if global market prices remain stable, imported rice could fall below P50 per kilogram, assuming a maximum landed cost of USD 550 (~P31,900) per metric ton.
As of February 21, imported rice with 5% broken kernels was quoted at USD 490 (~P28,400) per metric ton.
Will the price cap be lowered?
Agriculture Secretary Francisco Tiu Laurel Jr. said in a statement on Wednesday that there are no plans to implement the gradual reduction of the SRP nationwide.
The DA will instead adopt a more "surgical" approach, focusing on Metro Manila and specific urban centers where rice prices remain high.
"In many provincial areas, we’ve seen prices of imported rice already lower than the MSRP. So we will apply it more selectively," he added.
The DA plans to evaluate the effectiveness of the price cap by analyzing price trends in the coming weeks, including after the P49 per kilogram price cap takes effect. Depending on the results, the DA may consider further lowering the price cap.
"We will review the numbers in the coming days to determine if there’s room to lower the MSRP further. As of now, there could be scope for additional reductions, but we’ll have to see," Tiu Laurel said.
Prior to the price cap implementation, rice in Metro Manila was mostly sold at P62 to P64 per kilogram.
Latest prices. Here are the latest rice prices in Metro Manila markets based on the DA’s monitoring as of Wednesday:
Imported commercial rice
- Special: P55 to P62 per kilogram
- Premium: P49 to P58 per kilogram
- Well-milled: P43 to P46 per kilogram
- Regular milled: P36 to P46 per kilogram
Local commercial rice
- Special: P55 to P63 per kilogram
- Premium: P45 to P61 per kilogram
- Well-milled: P42 to P52 per kilogram
- Regular milled: P38 to P45 per kilogram
- Latest
