DA pilots rice blending to cut costs

The government is preparing to introduce a blended rice product in Metro Manila next month as it moves to cushion consumers from a potential surge in prices later this year.

The Department of Agriculture (DA) said on Thursday, 20 April that the department will begin trial sales of rice mixed from local and imported supply in select retail outlets in May, following projections that retail prices for well-milled and premium rice could climb to as high as P60 to P62 per kilo by September without intervention.

The planned rollout comes as food inflation risks persist, driven by rising fuel and fertilizer costs and the expected impact of El Niño on domestic production.

Agriculture Secretary Francisco Tiu Laurel Jr. confirmed the pilot run, saying, “Next month, there will be trials in retail outlets.”

The blended rice strategy aims to bring down average prices by combining lower-cost imports with higher-priced local produce. Assistant Secretary Arnel de Mesa explained the approach: “You will blend the cheaper imported rice with the expensive locally-produced rice so the resulting price will be lower.”

Initial proposals suggest a mix of 60 percent imported and 40 percent local rice, with an alternative 70:30 ratio also under consideration. Final pricing for the product has yet to be set.

Current market data show imported premium rice in Metro Manila selling between P55 and P63 per kilo, while local premium rice ranges from P52 to P60. Well-milled and regular varieties are priced lower but remain sensitive to input cost pressures.

Aside from rice blending, the DA is also studying a separate mix combining rice and corn grits as part of a broader effort to expand affordable food options.

Officials said the initiative is designed as a short-term measure to stabilize prices while longer-term interventions in production and supply chains continue to be developed.