Rice prices may drop to P45 per kilo by March 31 if global prices continue to decline and the peso remains strong, Agriculture secretary Francisco P. Tiu Laurel Jr. announced Sunday.
“If the current trend in world rice prices persists and the peso maintains its strength, we may lower the MSRP for imported rice to around P45 per kilo by March 31,” he said.
This follows the government’s recent move to cut the maximum suggested retail price (MSRP) for imported rice from P58 per kilo to P49 as of March 1.
Implemented in early February, the Department of Agriculture’s (DA) MSRP policy has significantly lowered rice prices without disrupting the market.
Before its enforcement, imported rice with 5 percent broken grains was retailing at around P64 per kilo despite falling global prices, reduced tariffs, and a stronger peso.
The Philippine Statistics Authority (PSA) identified the MSRP as a key factor in easing inflation, with March figures coming in lower than expected.
The initiative is congruent with President Ferdinand Marcos Jr.’s decision to cut rice tariffs from 35 percent to 15 percent starting in July 2024, following consultations with industry stakeholders.
Aiding the downward trend in prices, India lifted its year-long ban on non-basmati rice exports in September 2024, boosting global supply.
As a result, rice prices have hit a two-year low, with some varieties now below $400 per metric ton.
Vietnamese high-quality rice (5 percent broken grains) now costs around $490 per metric ton—over $200 cheaper than in November 2024 and about $80 lower than early January prices.
Meanwhile, the Philippine peso strengthened in March after hovering above P58 per US dollar since November. It briefly touched P59 in November but appreciated to P57.225 per dollar as of March 11, per Bangko Sentral ng Pilipinas data.
Tiu Laurel assured that reduced tariffs and lower rice prices would not affect the P30 billion annual budget for the Rice Competitiveness Enhancement Fund (RCEF), which supports local farmers under the amended Rice Tariffication Law (RTL).
The government has also secured RCEF’s continuity through the General Appropriations Act starting in 2026, ensuring its expansion until 2031 to enhance the competitiveness of Filipino rice farmers.