Retail Prices of Imported Rice Expected to Drop Below P50, Says DA
MANILA, Philippines – The Department of Agriculture (DA) announced on Monday, January 13, that the maximum suggested retail price (MSRP) for imported rice, especially the 25% broken variety, could fall below P50 per kilogram. This comes as global rice prices continue to decline,driven by significant price drops in key exporting countries like Vietnam,India,and Thailand.
“That’s a probability considering na very sharp nga ‘yung pag-decline from December 10 to January 10 nitong presyo ng bigas sa international market,” said DA spokesman Arnel de Mesa. (That’s a probability considering that ther is a very sharp decline from December 10 to January 10 in the price of rice in the international market.)
The DA is set to implement an MSRP of P58 for imported rice in Metro Manila starting January 20, aiming to stabilize and reduce prices. This computation was based on the prices of 5% broken rice from Vietnam, including landed costs. However, with the recent downward trend in international prices, the DA expects the MSRP to drop further.
global Price Declines Drive local Adjustments
recent data from the Vietnam Food Association reveals a sharp decline in rice prices. The cost of 5% broken Vietnamese rice fell from $510 to $434 per metric ton, while 25% broken rice dropped from $409 to $326 per metric ton. Similar trends were observed in India and Thailand.
- India: 5% broken rice decreased from $449 to $440 per metric ton, while 25% broken rice fell from $434 to $425.
- Thailand: 5% broken rice declined from $479 to $438 per metric ton.
“It could be lower kasi yung initial na computation sa P50, mataas na ‘yung presyo sa international market. Ito na bumababa, definitely, it will go down below P50 yung 25% broken,” De Mesa added. (It could be lower because the initial computation was based on previously higher prices in the international market. Now it has lowered,definitely,the price of 25% broken rice will go down below P50.)
Philippines’ Rice Imports Hit Record High
The Philippines imported a record 4.78 million metric tons of rice in 2024, according to the DA. This figure surpasses the earlier reported 4.68 million MT, highlighting the country’s reliance on imported rice to meet domestic demand.
As of Friday, July 10, imported rice prices in the Philippines ranged from P28 to P65 per kilogram, depending on the variety and quality.
Key Price Trends at a Glance
Below is a summary of recent price changes in the international rice market:
| Country | Rice Variety | Price (Dec 10) | Price (Jan 10) |
|————-|——————|——————–|——————–|
| Vietnam | 5% Broken | $510/MT | $434/MT |
| Vietnam | 25% Broken | $409/MT | $326/MT |
| India | 5% Broken | $449/MT | $440/MT |
| India | 25% Broken | $434/MT | $425/MT |
| Thailand | 5% Broken | $479/MT | $438/MT |
What This Means for Consumers
The DA’s move to adjust the MSRP reflects its commitment to ensuring affordable rice prices for Filipino consumers. With global prices on a downward trajectory, the department is optimistic that local retail prices will follow suit, providing much-needed relief to households.
For more updates on rice prices and agricultural policies, stay tuned to official announcements from the Philippine Rice Research Institute.
“The decline in international prices is a welcome growth,” De Mesa emphasized. “We are working to ensure that these reductions are passed on to consumers.”
As the DA continues to monitor global market trends, Filipino consumers can look forward to more affordable rice in the coming months.
– rappler.com
How Global Rice price Declines Are Shaping Local Markets in the Philippines
In this exclusive interview, senior Editor of world-today-news.com, Maria Santos, sits down with Dr. Carlos Rivera, an agricultural economist and expert on global rice markets, to discuss the recent announcement by the Department of Agriculture (DA) regarding the expected drop in retail prices of imported rice in the Philippines. With global rice prices declining sharply, especially in key exporting countries like Vietnam, India, and Thailand, Dr. Rivera provides insights into what this means for Filipino consumers and the broader agricultural landscape.
Understanding the Sharp Decline in Global Rice Prices
Maria Santos: Dr. Rivera, thank you for joining us today. The DA recently announced that the maximum suggested retail price (MSRP) for imported rice, particularly the 25% broken variety, could fall below P50 per kilogram. Can you explain what’s driving this sharp decline in global rice prices?
Dr. Carlos Rivera: Thank you, Maria. The decline in global rice prices is primarily driven by notable price drops in major exporting countries like Vietnam, India, and Thailand. As an example, data from the Vietnam Food Association shows that the price of 5% broken rice fell from $510 to $434 per metric ton, while 25% broken rice dropped from $409 to $326 per metric ton. Similar trends are observed in India and Thailand. This is largely due to increased production, favorable weather conditions, and reduced export restrictions in these countries.
Impact on Local Retail Prices in the Philippines
maria Santos: How do these global price declines translate to local retail prices in the Philippines? The DA mentioned implementing an MSRP of P58 for imported rice in Metro Manila starting January 20. Do you think this will hold, or could prices drop further?
Dr. Carlos Rivera: The DA’s initial MSRP of P58 is based on the prices of 5% broken rice from Vietnam,including landed costs. Tho, given the continued downward trend in international prices, it’s highly likely that the MSRP will drop further. Actually, DA spokesman Arnel de Mesa has already hinted that the price of 25% broken rice could fall below P50 per kilogram. This is a direct reflection of the global market trends and the Philippines’ reliance on imported rice to meet domestic demand.
Record High Rice Imports and Domestic Demand
Maria Santos: The Philippines imported a record 4.78 million metric tons of rice in 2024. What does this say about the country’s reliance on imported rice, and how does this impact local farmers?
Dr. Carlos Rivera: The record-high rice imports highlight the Philippines’ heavy reliance on imported rice to meet domestic demand. While this ensures a steady supply and helps stabilize prices, it also poses challenges for local farmers. Increased imports can lead to lower farmgate prices, which may discourage local production. It’s crucial for the government to strike a balance between ensuring affordable rice for consumers and supporting local farmers through subsidies,improved infrastructure,and access to modern farming technologies.
What This Means for Filipino Consumers
Maria Santos: For the average Filipino consumer, what does this decline in rice prices mean, especially for households that rely heavily on rice as a staple food?
Dr. Carlos Rivera: this is excellent news for filipino consumers, particularly for low-income households that spend a significant portion of thier income on rice. A drop in retail prices to below P50 per kilogram for 25% broken rice will provide much-needed relief and improve food affordability. Though, it’s crucial to note that while prices are declining, the government must ensure that these reductions are effectively passed on to consumers and not absorbed by middlemen or retailers.
Looking Ahead: Monitoring Global Trends
Maria Santos: what should consumers and stakeholders expect in the coming months? how will the DA and other agencies ensure that these price reductions are sustained?
Dr. Carlos Rivera: The DA and other relevant agencies will need to closely monitor global market trends and adjust policies accordingly.The recent price declines are a welcome development, but they are also subject to fluctuations based on global supply and demand, weather conditions, and geopolitical factors. The government must remain proactive in ensuring that these benefits are sustained and that local farmers are not adversely affected. clarity in pricing and effective implementation of the MSRP will be key to achieving this balance.
