P49 maximum SRP on imported rice in March – DA

MANILA, Philippines — Filipinos can expect the maximum suggested retail price (SRP) of imported rice to go down in the coming weeks, with the target of P49 per kilo eyed by March, Agriculture Secretary Francisco Tiu Laurel Jr. said yesterday, citing the continued drop in world prices of imported grains.

“By Feb. 5, the maximum SRP on imported rice will be brought down to P55. Then, by Feb. 15, we will lower it further to P52. By March 1, hopefully, we will break P50 per kilo, with the maximum SRP at P49, as long as world prices remain as they are today – a maximum landed cost of $530 to $550 per metric ton for five percent broken rice,” Tiu Laurel said following an inspection at the Cartimar Market in Pasay City.

The maximum SRP of P58 per kilo took effect on Jan. 20 as rice prices remain elevated despite the implementation of Executive Order No. 62 which lowered the tariff on imported rice to 15 percent from the previous 35 percent. President Marcos signed EO 62 in June 2024 and it took effect in July.

Tiu Laurel said that Japanese black rice, red rice, basmati, imported glutinous and locally produced rice are exempted from the MSRP.

The agriculture secretary further noted that while some stakeholders have called for a more immediate and substantial reduction, the government wants to avoid destabilizing the rice industry.

“That is the main reason why it has to be a drawdown. When we declared the maximum SRP at P58, a lot of people criticised me as someone living on 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,” he explained.

Tiu Laurel said that by announcing the planned reductions of maximum SRP, the DA aims to give rice industry players – traders, retailers, wholesalers and importers – a window for an orderly transition.

He added that once the rice labeling guidelines are finalized by the DA and the Department of Trade and Industry (DTI), there would be a maximum SRP per type of rice.

Based on DA’s monitoring, the retail price of imported special rice was still sold as high as P61 per kilo; imported premium rice up to P58 per kilo; imported well milled rice as high as P52 per kilo and imported regular rice as much as P48 per kilo.

‘Not yet on sale’

Asked about the availability of NFA rice, Tiu Laurel said it will be sold nationwide as soon as a food security emergency is declared in the country.

He is still awaiting the approved resolution of the National Price Coordinating Council signed by a 10-member panel.

“Based on our projection, the guidelines (for the food security emergency) will be issued by the end of the month. It will take time for them to really look at it. The deliveries may start Feb. 7 to 15,” Tiu Laurel said.

He added that once a food security emergency is declared, the NFA can sell their stocks to the LGUs at P36 per kilo and the local executives can sell the rice at P38 per kilo.

“We cannot give (NFA rice) to all municipalities or LGUs. The technique is for us to entail minimal cost. LGUs where the stocks are located would be given the allocation. We need to flush out our stocks, about 300,000 tons,” Tiu Laurel declared.

The DA hopes to begin the availability of the affordable rice in supermarkets and convenience stores by Feb. 15. This will include the P29 per kilo rice for vulnerable sectors; the P38 and P45 per kilo for 25 percent and five percent broken rice under the Rice-for-All program and the P36 per kilo “sulit rice,” which can be bought in over 3,200 retail outlets of SM, Robinsons, 7-Eleven, Puregold and MerryMart.

High vegetable prices

Aside from rice, the government should address the persistently high prices of vegetables and other daily staples, Sen. Sherwin Gatchalian urged.

“The government must also provide ample support to farmers to boost production, lower costs and increase the supply of agricultural goods. We can meet the high price of goods for the sake of our consumers if our farmers have enough harvest and production,” he said.

During an inspection at the Pasay City public market yesterday, Tiu Laurel identified possible smuggled vegetables, with onion sticks, Chinese yam, large broccoli and peppers still wrapped in packaging with Chinese characters.

He noted that the questionable farm products lacked sanitary and phytosanitary import clearances (SPSICs), making them unverified and possibly unsafe for consumers.

“I don’t recall the Bureau of Plant Industry issuing SPSICs for these vegetables. This strongly indicates smuggling,” Tiu Laurel said.

He ordered the DTI and related agencies to investigate and, if necessary, pursue legal action against those responsible.

Meanwhile, the retail price of pork has also spiked within the last two weeks, with pork belly sold as high as P480 per kilo and pork shoulder up to P400 per kilo, the DA’s monitoring revealed. Tiu Laurel said he is studying the possibility of imposing a maximum SRP on pork.

“During our inspection, the farmgate price was only P220, P240 (per kilo) so there seems to be a similar problem just like rice. We are already computing the value chain like we did (with) rice to see how we can temper the price,” he noted.