MANILA – The Department of Agriculture (DA) is targeting to reduce the price of imported rice to PH49 per kilo by March by gradually lowering the maximum suggested retail price (MSRP) in the coming weeks, provided global prices remain stable.
DA Secretary Francisco Tiu Laurel Jr. said the DA would initially set the MSRP for imported rice at PH58 per kilo to address soaring prices in Metro Manila, aligning with President Ferdinand R. Marcos Jr.’s decision to cut the rice import tariff from 35 percent to 15 percent in July 2023.
“By February 5, the MSRP on imported rice will be brought down to PHP55. Then, by February 15, we will lower it further to PHP52. By March 1, hopefully, we will break PHP50 per kilo, with the MSRP at PHP49, as long as world prices remain as they are today,” Laurel said in an interview during the market inspection in Pasay City on Friday.
Current world price, he said, is at a maximum landed cost of USD530 to USD550 per metric ton for 5 percent broken rice.
Laurel said the phased reduction allows for an orderly transition in the market and would prevent destabilizing the rice industry, ensuring businesses can adjust without significant disruption.
Some rice varieties, including Japanese black rice, red rice, basmati, and locally produced rice, are exempt from the MSRP adjustments, he said.
Laurel said as of Wednesday, the price of 5 percent broken rice from Asian exporters ranges from USD413 to USD472 per metric ton.
Vietnam offered the lowest price at USD413, while the 25 percent broken variety was quoted at USD387 per metric ton, Laurel said. These prices exclude freight and other costs, as well as tariffs.
Laurel noted the data from the Bureau of Customs citing that imported rice currently being sold in the market was still purchased at around USD700 per metric ton.
Industry experts predict further price declines as Vietnam enters its harvest season and demand pressures from countries like the Philippines and Indonesia subside.
Laurel said the DA’s gradual plan would allow traders, retailers, wholesalers, and importers to liquidate older, higher-priced stocks and renegotiate supplier contracts.
Meanwhile, Laurel also highlighted ongoing collaboration with the Department of Trade and Industry (DTI) on new rice labeling guidelines, which he said would introduce MSRP-specific labeling for different rice types, giving consumers clearer information once finalized. (PNA)