The Department of Agriculture (DA) described on Monday the retail price of P42 per kilogram of well-milled rice as a “happy balance” in ensuring affordability for consumers while supporting farmers’ livelihoods.
“While we aim to lower food costs, we remain committed to addressing the needs of our primary stakeholders—farmers and their families, who work tirelessly but have yet to fully benefit from their hard work,” said DA Secretary Francisco Tiu Laurel Jr.
Tiu Laurel said that aside from Vietnam, where production costs are lower, the Philippines offers more affordable well-milled rice compared to other rice-producing countries like Thailand and China.
Well-milled rice in the Philippines retails between P45 and P52 per kg. In Thailand, prices range from P51.95 to P132.75 per kg, while in China, the same quality rice is sold at P44.47 to P88.86 per kg., he said.
“A retail price of P42 per kilo strikes a balance between ensuring farmers earn a decent return for their efforts and providing consumers with access to affordable rice,” Tiu Laurel said.
The DA said rice traders in some production areas began adjusting palay buying prices in anticipation of further reductions in retail rice prices. Typically, the market price of rice is calculated by doubling the palay buying price.
Rice, the country’s staple food, accounts for a significant portion of household expenses. For every P100 spent by the average consumer, P10 goes to rice. Among the bottom 30 percent of income households—where many farmers and fisherfolk belong—this rises to P20 per P100.
Tiu Laurel said the DA monitors international rice prices and the peso exchange rate to balance local supply and pricing.
Global rice prices dropped from over $630 per ton in January to below $500 per ton in October. However, the peso’s sharp depreciation from 48 to 58 against the US dollar over the same period offset potential savings on imports.
