Suggested price cap on foreign rice cut anew
The Department of Agriculture (DA) lowered the maximum suggested retail price (MSRP) for imported rice to P43 per kilogram (kg) from P45 previously. This went into force on Wednesday, in response to declining global market prices.
The DA made the decision following the continued decline of rice prices among major suppliers—namely India, Pakistan, Thailand and Vietnam—between April and June.
The price cap on 5-percent broken imported rice applies to public and private wet markets within the National Capital Region, according to Administrative Circular No. 10 dated July 8.
The DA earlier decided to postpone the reduction of the MSRP this month, citing the indirect impact of the Israel-Iran conflict on the local farm sector.
The agency said that although crude oil is not directly used to manufacture fertilizer, its byproduct, natural gas, is essential for producing ammonia—a core ingredient in manufacturing nitrogen-based fertilizers.
Ultimately, the DA moved to lower the MSRP after the ceasefire between Israel and Iran last month stabilized global conditions.
Setting the MSRP is one of the strategies introduced by the DA last Jan. 20 to ease rising retail prices of the staple food.
This was initially set at P58 per kg, but the agency has since then slashed the price cap several times.
The DA adopted this noncoercive measure despite the government slashing the import duty on rice to 15 percent from 35 percent via Executive Order No. 62 promulgated last June.
Aside from the MSRP, the agency unveiled the subsidized rice program in the Visayas in May to fulfill President Marcos’ campaign promise of bringing down rice prices to P20 a kilo.
The DA has expanded the subsidized rice sale after its launch in La Union on Tuesday and Baguio City on Wednesday.
About 150 bags of rice were delivered to Baguio City, which benefited 750 individuals. They include beneficiaries of the Pantawid Pamilyang Pilipino Program, senior citizens, solo parents and persons with disabilities.
Another 100 bags of rice were sold to 500 residents of Naguilian town in La Union.
“More rollout sites are expected in the coming weeks, particularly in areas with high poverty incidence,” the DA said.
Under this initiative, the DA, through the Food Terminal Inc. (FTI), purchases rice from the National Food Authority (NFA), which the grains agency sources directly from local farmers.
The FTI purchases rice from the NFA at P33 per kilo, but sells the commodity to eligible beneficiaries—including vulnerable sectors, minimum wage earners and beneficiaries of food aid—at P20 per kg, resulting in a government subsidy of P13 per kg.
To date, the P20/kg rice initiative is implemented in 162 locations nationwide, primarily through Kadiwa stores.
As of Monday, imported regular milled rice ranged from P33 to P45 per kg in Metro Manila markets. This is lower than P38-P48 per kg on Jan. 20, based on the DA’s price monitoring.
Imported well-milled rice retailed between P38 and P45 per kg as opposed to P44-P50 per kg.
