Agri chief says move to keep prices fair, fight profiteers

The Department of Agriculture set the maximum suggested retail price (MSRP) for imported rice at P58 per kilo, effective January 20, 2025.

“This MSRP aims to strike a delicate balance between business sustainability and the welfare of consumers and farmers. We must ensure the price of rice is fair and affordable even as we ensure that the rice industry remains profitable. We cannot allow the greed of a few to jeopardize the well-being of an entire nation,” Agriculture secretary Francisco Tiu Laurel said.

“If we don’t see P60 per kilo of rice after January 20, that’s already a significant achievement,” he added.

He said the decision followed extensive consultations with various stakeholders, including importers, retailers, industry representatives, government agencies, and law enforcement.

The MSRP will be implemented in Metro Manila and reviewed monthly to reflect changes in global rice prices. It may decrease if global prices continue to decline.

“Based on our analysis of data and profit margins provided by importers and retailers, imported 5 percent broken rice should not exceed P58 per kilo. Higher-grade rice should be priced accordingly,” Tiu Laurel said.

To bring down rice prices, the DA earlier directed the Food Terminals Inc. to sell rice through “Kadiwa ng Pangulo” centers and kiosks at subsidized prices at P45 per kilo for 5 percent broken; P40/k for 25 percent broken, and P36/k for 100 percent broken.

Kadiwa stores also offer P29/k rice for vulnerable sectors, including indigents, persons with disabilities, senior citizens, single parents, and indigenous peoples.

Orlando Manuntag, co-founder of the Philippine Rice Industry Stakeholders Movement, said his group supports the P58 per kilo maximum SRP for imported rice.

“World market prices have gone down. We have seen in many markets that prices are already down,” Manuntag said.

DA data showed rice import volume had reached a record of 4.7 million metric tons in 2024 as falling prices and lower tariff created a disincentive for smugglers. This allowed the market to accurately reflect the volume of rice imported into the country, Tiu Laurel said.

Earlier, the rice price issue came to the fore after NEDA Director Nieva Natural told a House panel that the President’s Executive Order 62, which lowered the tariff on imported rice from 35 percent to 15 percent, did not lead to a reduction in prices as expected.

Marikina City Rep. Stella Quimbo cited data showing that the landed cost of rice had decreased from P34.21 per kilogram in July to P33 in December given the reduced tariff, but this did not translate to lower retail prices.

Manuntag said this was because traders were importing high-cost varieties instead of affordable rice.

He said from January to December 2024, at least 74 percent of the 4.3 million metric tons (MT) of imported rice that arrived were premium varieties, primarily whole grain, which are significantly more expensive.

Only a small fraction consisted of well-milled or broken rice—varieties intended to lower prices for consumers, he said.

Manuntag called on the government to enforce regulations requiring a mandatory allocation of at least 10 percent of imports for well-milled and broken rice.