DA Targets PHP49 per Kilo for Imported Rice by March, Announces Gradual Price Reductions
The Department of Agriculture (DA) is taking decisive steps to lower the cost of imported rice, aiming to bring the maximum suggested retail price (MSRP) down to PHP49 per kilo by March 2025. This phased approach, announced by DA Secretary Francisco Tiu Laurel Jr., is designed to stabilize the market and provide relief to consumers grappling with soaring rice prices in Metro Manila.
During a market inspection in Pasay City on January 24, 2025, laurel outlined the DA’s plan to gradually reduce the MSRP for imported rice. “By Febuary 5, the MSRP on imported rice will be brought down to PHP55. then,by February 15,we will lower it further to PHP52. by March 1,hopefully,we will break PHP50 per kilo,with the MSRP at PHP49,as long as world prices remain as they are today,” Laurel said.
This strategy aligns with President Ferdinand R.Marcos Jr.’s decision to slash the rice import tariff from 35 percent to 15 percent in July 2023, a move aimed at easing the financial burden on Filipino households. The current global price for 5 percent broken rice stands at a maximum landed cost of USD530 to USD550 per metric ton,according to Laurel.
Phased Reductions to Ensure Market Stability
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The DA’s phased approach is intended to prevent market destabilization, allowing businesses to adjust without significant disruption.Laurel emphasized that the gradual reduction would enable traders, retailers, wholesalers, and importers to liquidate older, higher-priced stocks and renegotiate supplier contracts.
“The phased reduction allows for an orderly transition in the market and would prevent destabilizing the rice industry,” Laurel explained.
exemptions and Global Price Trends
Not all rice varieties will be subject to the MSRP adjustments. Japanese black rice,red rice,basmati,and locally produced rice are exempt from the new pricing guidelines.
Laurel also highlighted the current pricing trends among Asian exporters. As of January 2025, the price of 5 percent broken rice from these exporters ranges from USD413 to USD472 per metric ton. Vietnam, the Philippines’ top rice supplier, offers the lowest price at USD413 per metric ton, while the 25 percent broken variety is quoted at USD387.These prices exclude freight, other costs, and tariffs.
Despite these favorable trends, Laurel noted that imported rice currently being sold in the market was purchased at around USD700 per metric ton, according to data from the Bureau of Customs.
Collaboration with DTI for Consumer Transparency
In addition to price adjustments, the DA is working closely with the Department of Trade and Industry (DTI) to introduce new rice labeling guidelines. These guidelines will feature MSRP-specific labeling for different rice types, providing consumers with clearer details about their purchases.
“The new labeling guidelines will give consumers clearer information once finalized,” Laurel said.
Key Takeaways at a Glance
To summarize the DA’s plan and its implications, here’s a breakdown of the key points:
| Key Details | Information |
|————————————-|———————————————————————————|
| Target MSRP by March 2025 | PHP49 per kilo for imported rice |
| Phased Reductions | PHP58 (initial) → PHP55 (Feb. 5) → PHP52 (Feb. 15) → PHP49 (March 1) |
| Global Price Trends | USD530-550 per metric ton for 5% broken rice |
| Top Supplier (Vietnam) | USD413 per metric ton for 5% broken rice |
| Exempt Rice Varieties | Japanese black rice,red rice,basmati,locally produced rice |
| New Labeling Guidelines | MSRP-specific labeling in collaboration with DTI |
Looking Ahead
Industry experts predict further price declines as Vietnam enters its harvest season and demand pressures from countries like the Philippines and Indonesia subside. The DA’s gradual approach ensures that the market remains stable while providing much-needed relief to consumers.
As the DA and DTI finalize the new labeling guidelines, Filipino consumers can look forward to greater transparency and affordability in the rice market.For now, the focus remains on achieving the PHP49 per kilo target by March, a milestone that could significantly ease the cost of living for millions of Filipinos.
Interview with DA Secretary Francisco Tiu Laurel Jr. on Rice Price Reduction Strategy
Editor: Secretary laurel, thank you for joining us today. The Department of Agriculture (DA) has announced a phased approach to reduce the maximum suggested retail price (MSRP) of rice to PHP49 per kilo by March 2025. Can you explain the rationale behind this strategy?
Secretary Laurel: Thank you for having me. The phased reduction is designed to stabilize the market and provide relief to consumers, especially in Metro Manila, where rice prices have been soaring. By gradually lowering the MSRP, we allow businesses to adjust without causing significant disruptions.This approach also enables traders, retailers, and importers to liquidate older, higher-priced stocks and renegotiate supplier contracts, ensuring a smoother transition.
Editor: How will the phased reductions work, and what are the specific targets?
Secretary Laurel: We’ve outlined a clear timeline for the reductions. Starting from the current MSRP of PHP58 per kilo, we aim to bring it down to PHP55 by February 5, PHP52 by February 15, and finally PHP49 by March 1, 2025. These targets are contingent on global rice prices remaining stable. Our goal is to break the PHP50 barrier by March, which would substantially ease the financial burden on Filipino households.
Editor: What role dose the reduction in rice import tariffs play in this strategy?
Secretary laurel: The reduction in rice import tariffs from 35% to 15%, implemented by President Ferdinand R. Marcos Jr. in July 2023, is a critical component of this strategy. Lower tariffs help reduce the landed cost of imported rice, making it more affordable for consumers.currently, the global price for 5% broken rice stands at a maximum landed cost of USD530 to USD550 per metric ton. This reduction allows us to pass on the savings to consumers.
editor: Are there any rice varieties that will be exempt from these MSRP adjustments?
Secretary Laurel: Yes, certain rice varieties are exempt from the new pricing guidelines. These include Japanese black rice, red rice, basmati, and locally produced rice. These varieties are ofen niche products with different market dynamics, so they are not subject to the same pricing regulations as imported rice.
Editor: Can you provide some insights into the current global price trends for rice?
Secretary Laurel: As of January 2025, the price of 5% broken rice from asian exporters ranges from USD413 to USD472 per metric ton. Vietnam, our top rice supplier, offers the lowest price at USD413 per metric ton for 5% broken rice, while the 25% broken variety is quoted at USD387.These prices exclude freight, other costs, and tariffs. However, it’s vital to note that some of the imported rice currently being sold in the market was purchased at around USD700 per metric ton, according to data from the Bureau of Customs.
Editor: how is the DA collaborating with the Department of Trade and Industry (DTI) to ensure consumer openness?
Secretary Laurel: We are working closely with the DTI to introduce new rice labeling guidelines. These guidelines will feature MSRP-specific labeling for different rice types, providing consumers with clearer information about their purchases. The goal is to enhance transparency and help consumers make more informed decisions when buying rice.
Editor: What are the key takeaways from the DA’s plan, and what can consumers expect in the coming months?
Secretary Laurel: The key takeaways are the phased reductions in the MSRP, the exemption of certain rice varieties, and the collaboration with the DTI for better labeling.Consumers can expect more affordable rice prices, with the target of PHP49 per kilo by March 2025. Additionally, the new labeling guidelines will provide greater transparency, ensuring that consumers have all the information they need to make informed choices.
Editor: Looking ahead, what are your predictions for the rice market in the Philippines?
Secretary Laurel: Industry experts predict further price declines as Vietnam enters its harvest season and demand pressures from countries like the philippines and Indonesia subside. Our gradual approach ensures that the market remains stable while providing much-needed relief to consumers. As we finalize the new labeling guidelines with the DTI, Filipino consumers can look forward to greater transparency and affordability in the rice market.
Conclusion
The DA’s phased approach to reducing the MSRP of rice aims to stabilize the market and provide relief to consumers. With a clear timeline for price reductions, exemptions for certain rice varieties, and enhanced labeling guidelines, the DA is working to ensure that rice remains affordable and accessible for all Filipinos. The collaboration with the DTI and the reduction in import tariffs are key components of this strategy,which is expected to bring significant benefits to consumers by March 2025.