The maximum suggested retail price (MSRP) of imported rice will drop to P49 per kilo in selected areas across the country beginning March 1, in line with the Marcos administration’s promise of substantially lowering the prices of basic goods.
On Wednesday, Agriculture Secretary Francisco P. Tiu Laurel Jr. clarified that the reduced rice MSRP will be enforced in Metro Manila and key urban centers but not nationwide.
“In many provincial areas, imported rice prices are already lower than the MSRP, so we will apply it more selectively,” he explained.
The Department of Agriculture (DA) introduced the MSRP policy on January 20 at P58 per kilo as a non-coercive measure to align retail prices with declining world market rates.
This followed President Marcos’ decision to cut rice tariffs from 35 percent to 15 percent last July.
The MSRP has since been lowered on a gradual basis to ease the transition for industry stakeholders.
Before its introduction, imported rice with 5 percent broken grains sold for P62 to P64 per kilo.
“We will review the numbers in the coming days to assess further reductions. As of now, there may be room to lower it, but we’ll have to see,” Tiu Laurel said.
In January, he projected that imported rice prices could dip below P50 per kilo if world market prices remained stable, with a maximum landed cost of $550 per metric ton (MT) for 5 percent broken rice.
As of February 21, the landed cost stood at $490/MT.
As this developed, the Federation of Free Farmers (FFF) called for the restoration of the 35 percent tariff on imported rice to encourage local traders to buy palay at better prices.
“With a 35 percent tariff, the landed cost of Vietnamese rice with 5 percent broken would increase to P33 per kilo. Adding P15 for other costs and trading margins, imported rice could still be sold at P48,” said FFF national manager Raul Montemayor.
The farmers’ group blamed the government’s policy of unlimited rice imports and the tariff reduction to 15 percent for the sharp decline in palay prices across the country.
It can be recalled that in January 2025, the landed cost of 5 percent broken rice, including freight, insurance, and the 15 percent tariff, averaged only P28 per kilo—significantly lower than current retail prices and the minimum suggested retail price (MSRP).