Starting February 5, the maximum suggested retail price (MSRP) for imported rice will drop to P55 per kilogram (kg), Department of Agriculture (DA) Secretary Francisco P. Tiu Laurel announced Friday following an inspection at the Cartimar Market in Pasay City.
The price will be further reduced to P52 by February 15, and, if global prices remain stable, the government hopes to bring it down to P49/kg by March 1.
The gradual reduction is contingent on a maximum landed cost of $530 to $550 per metric ton for 5% broken rice. The DA had initially set the MSRP at P58/kg for imported rice in Metro Manila, where prices had remained elevated.
The price cut reflected the decline in global rice prices and the decision by President Ferdinand Marcos Jr. to reduce the tariff on imported rice from 35% to 15%, effective July 2024.
Exempt from the MSRP are Japanese black rice, red rice, basmati, imported malagkit, and locally produced rice.
While some stakeholders have called for a more immediate and substantial price cut, Tiu Laurel emphasized that the government’s strategy is designed to avoid destabilizing the rice industry.
“That’s why it has to be gradual. When we set the MSRP at P58, some critics accused me of being out of touch. But the reality is we have a plan. You can’t just shock the market—it would force many out of business and create resistance, which we’re trying to avoid,” he explained.
Tiu Laurel noted that the imported rice currently sold in the market was still purchased at around $700 per metric ton (MT), according to Bureau of Customs data.
As of Wednesday, the price of 5% broken rice from Asian exporters ranged from $413 to $472/MT, with Vietnam offering the lowest price at $413. Vietnam’s 25% broken rice is priced at $387/Mt, excluding freight, tariffs, and other costs.
Industry analysts are optimistic that rice prices will continue to ease as Vietnam’s harvest season begins and as demand pressures from countries like the Philippines and Indonesia, which contributed to high demand due to El Niño concerns, start to subside.
The early announcement of the planned MSRP reductions intends to give rice industry stakeholders—such as traders, retailers, wholesalers, and importers—a window for an orderly transition, the DA said. This will allow them to liquidate higher-priced stocks and renegotiate contracts with suppliers.
The DA chief also mentioned that once the rice labeling guidelines, currently being worked out with the Department of Trade and Industry (DTI), are finalized, the DA will implement an MSRP for each type of rice.