DA to gradually lower rice price cap on imported rice, eyeing P49 per kilo by March

MANILA, Philippines — Imported rice may be capped at P49 per kilo by March “if global prices remain stable,” the Department of Agriculture announced on Friday, January 24. 

The current maximum suggested retail price for 5% broken imported rice stands at P58 per kilo, an effort to pull down local rice prices still exceeding P60 per kilo in Metro Manila markets. 

According to the DA's initial monitoring, most markets have complied with the rice price cap implemented on January 20. Only a few retailers are still selling rice above P58 per kilo, as they are offloading the remaining stocks purchased at higher prices.

Those exempted from the maximum suggested retail price include local brands, Japanese black rice, red rice, basmati and imported “malagkit” rice. 

The DA plans to gradually lower the rice price cap with scheduled adjustments. Agriculture Secretary Francisco Tiu Laurel told reporters on Friday that the next change will occur on February 5, bringing the price cap to P55 per kilo.

The next would be on February 15, setting the maximum suggested retail price at P52 per kilo, then lowering it further to P49 per kilo by March 1. 

Tiu Laurel said this is assuming global prices remain the same as today, which is “a maximum landed cost of USD530 (~P31,000) to USD550 (~P32,000) per metric ton for 5% broken rice.” 

The DA also explained that implementing a significant price reduction all at once could risk "destabilizing the rice industry," which is why the changes are being introduced in staggered intervals.

“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,” Tiu Laurel said. 

"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,” he added.

The House of Representatives has been investigating high rice prices and the alleged smuggling of agricultural commodities. Lawmakers have criticized the DA for setting the price cap at P58 per kilo, arguing that it remains too expensive.

In announcing this schedule, Tiu Laurel said it gives traders, retailers, wholesaler and importers ample time to adjust to lower prices by renegotiating with their rice suppliers.

The DA also plans to declare a food security emergency on rice next week as part of the government’s effort to lower the cost of rice in the market. 

Doing so would prompt the National Food Authority to release its buffer stocks of around 300,000 metric tons to the market, increasing supply.

This came after the National Price Coordinating Council, led by the Department of Trade and Industry, approved a resolution calling for a food security emergency on rice.