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.
According to Agriculture Secretary Francisco Tiu Laurel Jr., the DA is evaluating a potential reduction in MSRP to P45 per kilogram, down from the current P49 per kilogram, following the initiative’s debut at P58 per kilogram in February.
“If the current trend in world rice prices persists and the peso remains strong, we might lower the MSRP for imported rice to around P45 per kilo by 31 March,” Tiu Laurel said in a statement on Sunday.
The decision comes as landed costs of rice imports have significantly declined. The price of good-quality Vietnamese rice (5 percent broken grains) has dropped to around US $490 per metric ton, which is over US $200 cheaper than in November 2024 and approximately US $80 less than early January prices.
The DA 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 “Bongbong” Marcos Jr. approved in July 2024.
Meanwhile, retailers selling rice above the MSRP will be required to justify their pricing to authorities. Tiu Laurel previously stated that imported rice (25 percent broken grains) should not exceed P50 per kilogram.
Despite the anticipated lower prices, Tiu Laurel reassured the public that these changes will not affect the P30 billion annual budget for the Rice Competitiveness Enhancement Fund (RCEF). This fund, established under the amended Rice Tariffication Law (RTL), supports Filipino rice farmers.