The Department of Agriculture (DA) is expanding its Kadiwa Rice-for-All program to major public markets in a bid to provide consumers with more affordable rice options and address the persistent high retail prices. Agriculture Secretary Francisco Tiu Laurel Jr. said the move is in response to the growing gap between the reduction of import tariffs and still-elevated rice prices at the retail level.
Despite the reduction of rice import tariffs from 35 percent to 15 percent in July, retail prices have remained unusually high, with wholesale imported rice priced at just P37 to P38 per kilogram. “There’s no reason for continued high retail prices,” Tiu Laurel said, noting that international rice prices are also falling.
To expedite the impact of tariff cuts, the DA has been working closely with importers and retailers to bring down prices, but progress has been slow. As a result, the agency is taking a more hands-on approach by negotiating with importers to supply Kadiwa rice at a price of P42 per kilogram, which is expected to help lower market prices while ensuring fair competition.
“We’ve hesitated to enter the market to protect the livelihood of rice vendors, but since prices haven’t dropped significantly, we are now stepping in,” Tiu Laurel explained. The broader rollout of Kadiwa rice will be carried out in coordination with multiple government agencies, including the DILG, DTI, DOLE, DSWD, and units under the Office of the President.
While the rice tariff reduction has not yet fully stabilized prices, Tiu Laurel acknowledged its positive impact, especially in boosting the country’s rice inventory and stabilizing the market in light of challenges like the ongoing El Niño and recent typhoons. However, local rice production struggles to keep pace with demand, exacerbating supply challenges.
The Kadiwa initiative has garnered support from agricultural groups, including the Samahang Industriya ng Agrikultura (Sinag). Executive director Jayson Cainglet praised the DA’s efforts but called for the repeal of the tariff reduction, arguing that it has not translated into lower prices for consumers. He also criticized the continued profits of importers, who have benefited from the reduced tariffs without passing savings onto consumers.
As of the latest DA market monitoring, local well-milled rice is priced between P42 to P53 per kilogram, while imported rice ranges from P45 to P63 per kg, depending on the variety. Despite these high costs, the government remains committed to reducing prices and ensuring that the rice market remains stable amidst supply challenges.
