Retailers Defy Rice Price Cap as DA Enforces Leniency Amid Supply Challenges
MANILA,Philippines — Many retailers have failed to comply with the maximum suggested retail price (SRP) of P55 per kilo for imported premium rice,according to the Department of Agriculture (DA). Despite the enforcement of the new SRP in Metro Manila markets on February 5, 2025, retail prices remain higher than the mandated cap.
Agriculture Assistant Secretary and spokesman Arnel de Mesa acknowledged the issue during a press briefing, stating that the DA will allow retailers to sell their old stocks procured at higher prices. “Retailers want to sell their old stocks procured at higher prices. We are OK with that, and once the new rice supply arrives, they are expected to promptly comply with the max SRP,” De Mesa said.The SRP reduction, from P58 to P55 per kilo, was implemented by Agriculture Secretary Francisco Tiu Laurel Jr. in response to the continued drop in global rice prices.Though, domestic rice prices have continued to rise despite a 20-percent tariff cut. De Mesa expressed optimism that the SRP could be further reduced to P49 per kilo by March.
to ensure compliance, the DA is coordinating with the Department of Trade and Industry (DTI). Simultaneously occurring, the retail price of imported rice in Metro Manila remains at about P60 per kilo, exceeding the SRP.
Rice Price Breakdown
Table of Contents
- Navigating the Rice price Crisis: Insights from an Expert on Government Interventions and Market Dynamics
| Rice Type | Retail Price Range (per kilo) |
|————————–|———————————–|
| Imported Special Rice | P52 – P60 |
| Imported Premium Rice | P50 - P58 |
| Imported Well-Milled Rice| P44 – P45 |
| Imported Regular-milled Rice | P38 – P46 |
In response to the rising rice prices, local government units (LGUs) will resell NFA rice stocks to constituents at P35 per kilo. This follows the declaration of a food security emergency. However, the Omnibus Election Code restricts LGUs from releasing public funds 45 days before elections unless authorized by the Commission on Elections (COMELEC).De Mesa assured that NFA rice stocks will be available in markets within the week or next week. To facilitate nationwide delivery,the Land Transportation Office (LTO) will provide cargo trucks,focusing on areas experiencing shortages or extraordinary price increases.
“Inter-agency collaboration is critically important in responding to the rice crisis,” said LTO chief Vigor Mendoza II.
The rice crisis is further exacerbated by climate-related challenges. the Philippine Rice Research Institute (PhilRice) emphasized the need to scale up climate risk mapping to help farmers combat extreme weather, which has caused billions in agricultural losses.
According to a 2023 Food and Agriculture Institution (FAO) report, climate change could reduce Philippine rice yields by 10 to 15 percent by 2040. Last year,six successive tropical cyclones devastated rice farms in Central Luzon,Cagayan Valley,and Bicol,with Aurora province alone reporting over P45 million in agricultural damage,including P9 million from rice farmers.
As the government works to stabilize rice prices and ensure supply, the focus remains on balancing market dynamics with the needs of both retailers and consumers.
As rice prices continue to rise in the Philippines, the government has implemented measures such as the maximum suggested retail price (SRP), the resale of NFA rice stocks, and inter-agency collaborations to address the crisis. In this interview, Senior Editor of world-today-news.com speaks with Dr. Maria Santos,an agricultural economist and climate resilience expert,to discuss the challenges,solutions,and future strategies to stabilize the rice market.
Understanding the Current Rice Price Situation
Dr.Maria Santos: retailers are finding it tough to adhere to the SRP of P55 per kilo as many of them still have old stocks purchased at higher prices. The Department of Agriculture (DA) has allowed them to sell these stocks to avoid significant losses, but this has led to a disconnect between the mandated SRP and the actual retail prices. For example, in Metro Manila, imported rice is still being sold at around P60 per kilo, which is above the cap. This situation highlights the challenge of balancing market realities with policy enforcement. The DA anticipates that once new, lower-priced rice supplies arrive, retailers will be able to comply with the SRP more effectively.
Government Measures to Stabilize Rice Prices
Senior Editor: What role are local government units (LGUs) playing in addressing the rice crisis?
Dr. Maria Santos: LGUs are critical in this effort by reselling NFA rice stocks at P35 per kilo to make affordable rice available to constituents. Tho, this initiative is complex by the Omnibus Election Code, which restricts the release of public funds 45 days before elections unless authorized by the Commission on Elections (COMELEC).despite this, the government has assured that NFA rice will be available in markets soon, with the Land transportation Office (LTO) providing cargo trucks to deliver rice to areas experiencing shortages or significant price hikes.
Climate Change and Its Impact on Rice Production
Senior Editor: How is climate change exacerbating the rice crisis, and what measures are being taken to address it?
Dr. Maria Santos: Climate change is a major factor in the rice crisis, with extreme weather events causing significant agricultural losses. As an example, six successive tropical cyclones last year devastated rice farms in Central Luzon, cagayan Valley, and Bicol, leading to billions in damages. The Philippine Rice Research Institute (PhilRice) is advocating for scaling up climate risk mapping to help farmers better prepare for such events. Additionally, a 2023 Food and Agriculture Institution (FAO) report predicts that climate change could reduce Philippine rice yields by 10 to 15 percent by 2040, underscoring the urgency of these efforts.
inter-Agency Collaboration and Future Strategies
Senior Editor: How critically important is inter-agency collaboration in addressing the rice crisis?
Dr. Maria Santos: Collaboration among government agencies is absolutely essential. For example,the DA is working closely with the Department of Trade and Industry (DTI) to ensure compliance with the SRP,while the LTO is facilitating the nationwide delivery of rice stocks. As LTO Chief Vigor Mendoza II emphasized, coordinated efforts are critical to responding effectively to the crisis. Additionally, long-term strategies must focus on improving supply chain efficiency, supporting farmers, and enhancing climate resilience to ensure enduring rice production.
Conclusion
the rice price crisis in the Philippines is a multifaceted issue driven by market dynamics, climate challenges, and policy constraints. Through measures like the SRP, NFA rice resale, and inter-agency collaboration, the government is working to stabilize prices and ensure supply. Though, as dr. Maria Santos highlights, addressing the root causes of the crisis, such as climate change and supply chain inefficiencies, will be critical in securing long-term food security for the nation.
