The Department of Agriculture (DA) is eyeing a further reduction in the maximum suggested retail price (MSRP) of imported rice, targeting a P4 per kilogram cut by the end of March — provided global rice prices continue to fall and the Philippine peso remains strong.

This comes as the DA is evaluating a reduction in the MSRP to P45/kg down from the current P49/kg, following the MSRP debut at P58 per kilo in February, according to Agriculture Secretary Francisco Tiu Laurel Jr.

“If the current trend in world prices persists and the peso remains strong, we might lower the MSRP for imported rice to around P45 per kilo by 31 March,” Laurel said in a statement on Sunday.

The statement stemmed from the landed cost of imported rice which has declined significantly. Good quality Vietnamese rice (5-percent broken grains) has dropped to around US$490 per metric ton, over $200 cheaper than in November 2024 and approximately $80 lower than early January prices.

Laurel described the MSRP adjustments as a “non-coercive measure” aimed at aligning retail prices with the steady decline in world market prices and the tariff reduction on imported rice from 35 percent to 15 percent, which President Ferdinand Marcos Jr. approved in July 2024.

Meanwhile, retailers selling rice above the MSRP will need to justify their pricing to authorities. Laurel had previously stated that imported rice (with 25-percent broken grains) should not be priced higher than P50 per kilogram.

Despite the anticipated lower prices, Laurel reassured the public the changes would not affect the P30-billion annual budget for the Rice Competitiveness Enhancement Fund.