Starting 16 July, the Department of Agriculture (DA) will lower the maximum suggested retail price (MSRP) of imported rice to P43 per kilo, trimming it from the current P45 in a bid to make the staple more accessible to consumers and help rein in inflation.
The adjustment will apply to 5 percent broken rice, the most commonly purchased type of imported rice in the local market. Agriculture Secretary Francisco Tiu Laurel Jr. said the price cut was initially scheduled for 1 July but was temporarily delayed due to global market uncertainty brought about by escalating tensions in the Middle East.
With global conditions showing signs of stabilization following a ceasefire between Israel and Iran, the department has deemed it timely to resume the rollout of the lower MSRP.
“Global rice prices have since declined, alongside softening oil prices,” Secretary Tiu Laurel said.
He also cited favorable harvest forecasts from major producers as a contributing factor to lower world market prices.
“We are also seeing positive projections for record harvests from key producers like India, Pakistan, and Thailand. These developments could improve global supply and help pull prices further down,” he added.
The new pricing policy aligns with Executive Order 62, which reduces rice tariffs from 35 percent to 15 percent starting 8 July. The tariff cut is designed to lower importation costs and support the government’s push to bring down retail prices of rice, a staple that holds significant weight in inflation calculations by the Philippine Statistics Authority.
According to the DA, the initial implementation of MSRPs earlier this year has already helped reduce domestic rice prices, contributing to broader efforts to stabilize food costs and improve affordability for Filipino households.
Tiu Laurel also emphasized the indirect impact of energy markets on agricultural inputs. While crude oil itself is not used in fertilizer manufacturing, natural gas, a byproduct of oil, is a critical raw material in producing ammonia, a base component of nitrogen-based fertilizers. Lower energy prices, therefore, indirectly support efforts to manage food production costs.
As part of a broader pricing policy, the DA is also preparing to set MSRPs for imported pork by August and potentially for chicken by September, in response to rising meat prices amid supply constraints linked to animal disease outbreaks.