Rice prices may go down to P34/kilo, says NEDA

MANILA, Philippines — The price of rice may go down to as low as P34 per kilo this year due to the implementation of the rice tariffication law, the National Economic and Development Authority said Wednesday.

NEDA Assistant Secretary Mercedita Sombilla said the price of the staple has decreased to P36 per kilo, lower than the government's target of P37 and the lowest in six years. The prevailing price of rice in December was P41.63 per kilo.

"It exceeded (the target) and we hope that it will still go a little bit lower so that more people will benefit (from the lower prices)," Sombilla said at a press briefing in Malacañang.

"It depends on how all of these things will work out. But we are hoping it will still go down to P34, P35,” she added.

The rice tariffication law lifted quantitative rice import restrictions and permitted private firms to import rice as part of the administration's efforts to ensure food security. But some groups said the law is disadvantageous to farmers because it forces them to sell their produce at lower prices.

Sombillo noted that several factors may influence rice prices, including a possible crisis in countries where the Philippines import rice like Thailand and Vietnam. She, however, clarified that she does not see such crisis happening in the near future.

Trade Secretary Ramon Lopez said the rice tariffication law has also caused the lowering of the price of well-milled rice from P49 per kilo to P40 per kilo. 

Agriculture Secretary William Dar claimed rice is no longer a factor in inflation or  the rate of increase in the prices of goods and services. 

"There are other factors now, no longer rice. So this is such a significant thing to highlight, that after one year (of the implementation of rice tariffication law), there is enough rice from two sources: local production and bringing what is necessary from the outside," Dar said.