Rice price cap stays at P43/kilo

Rice price cap stays at P43/kilo | Daily Tribune

The maximum suggested retail price for 5-percent broken, imported rice will remain at P43 per kilo, providing consumers with short-term price stability as the government finalizes a higher rice import tariff.

Agriculture Secretary Francisco P. Tiu Laurel Jr. said Sunday the MSRP will not change until the planned increase in rice import duties to 20 percent from 15 percent takes effect on 16 January, in line with regulatory and procedural requirements.

“We have to complete the process before raising the tariff,” Tiu Laurel said, stressing that price adjustments should follow, not precede, official policy action.

For now, shoppers will continue to see the same rice prices at markets and retail outlets. “The January MSRP will stay at P43 because the duty is still 15 percent,” Tiu Laurel said, noting that the temporary price hold is meant to avoid confusion in the market while the tariff adjustment is being finalized.

The decision comes as the government balances consumer prices with efforts to support local farmers. Also, it contrasts with President Ferdinand Marcos Jr.’s campaign promise to make P20 per kilo rice widely available.

Before the import freeze, rice imports reached about 4.8 million metric tons, pushing palay prices down to as low as P8 per kilo in some areas.

Since the ban took effect, palay prices have recovered to around P17 per kilo for wet palay and about P23 per kilo for dry palay in several producing regions.

As the import ban expires on 31 December, the government will allow an initial 500,000 metric tons of rice into the country, with about 50,000 metric tons allocated to Food Terminals Inc.

The Department of Agriculture and industry stakeholders have also agreed on tighter import management, especially during the summer harvest.

Tiu Laurel, who chairs the National Food Authority Council, said the NFA plans to buy wet palay at P17 per kilo and dry palay at P21 per kilo during the March harvest, with private traders expected to offer higher prices.