The Department of Agriculture (DA) on Wednesday said the maximum suggested retail price (MSRP) for imported rice will ease to P49 per kilogram starting 1 March this year as reflection of the continued decline in world market prices. Agriculture Secretary Francisco Tiu Laurel Jr. said the price adjustment applies selectively in Metro Manila, key cities, and urban centers as prices in provincial areas are already lower than the MSRP.
The reduction is the latest in a series of adjustments. When the MSRP was first introduced in January at P58 per kilogram, it was meant to lower the retail price of imported rice in response to falling world market prices and reduced rice tariffs under Executive Order 62, which slashed the tariff from 35 percent to 15 percent last year. Since then, the MSRP has been lowered twice, currently at P52 per kilogram.
Before the MSRP, imported rice prices ranged from P62 to P64 per kilogram. With the new price drop, the DA said further cuts are possible but will review the data to assess whether more can be made. As of 21 February, the landed cost of 5 percent broken rice stands at $490 per metric ton.
While the price drop benefits consumers, some groups urge caution. Jayson Cainglet, executive director of the Samahang Industriya ng Agrikultura (Sinag), said the government should reconsider the reduced rice tariffs, arguing that higher tariffs help achieve a more sustainable price of P40 to P45 per kilogram. He also criticized Executive Order 62, calling for its repeal to support domestic rice farmers.
Farmers, in particular, already feel the impact of cheap imported rice. The Federation of Free Farmers (FFF) pointed to a significant dip in palay prices in San Jose, Occidental Mindoro, where newly harvested palay is now priced as low as P13 per kilogram. The FFF attributed this decline to the influx of imported rice and a sluggish response from the National Food Authority (NFA) to procure locally grown rice at the announced price of P23 per kilogram.
Raul Montemayor, FFF national manager, called on the DA to address these emerging issues with the same urgency as its efforts to lower rice prices. “It will be a disaster for the farmers if they do not get a reasonable price for their efforts,” he warned.
But Danilo Fausto, president of the Philippine Chamber of Agriculture and Food Inc., called for a balanced DA approach, emphasizing the importance of ensuring reasonable profit for farmers while keeping rice affordable for consumers.
As of February 20, the Philippines has imported 414,137 metric tons of rice, with the bulk of the shipments from Vietnam which accounted for 70.8 percent of the total. Rice prices in Metro Manila at present range from P36 to P62 per kilogram, depending on variety and grade.
The DA’s efforts to lower rice prices continue to spark debate over the delicate balance between supporting consumers and ensuring fair compensation for local farmers. The coming months will reveal how these price adjustments impact both sectors.
