2 weeks ago
5
The maximum suggested retail price (MSRP) for imported rice, currently set at ₱52 per kilo, will be lowered to ₱49 beginning next month, according to Agriculture Secretary Francisco Tiu Laurel.
The new price cap to take effect on March 1 marks the first time the MSRP will go below the ₱50 mark since it was introduced last month.
In a statement, Laurel has clarified that the MSRP seen in public and private markets will still not be implemented across the country.
The Department of Agriculture (DA) will instead opt to impose the price cap “selectively,” particularly in Metro Manila and other “key cities and urban centers.”
“In many provincial areas, we’ve seen prices of imported rice prices already lower than the MSRP. So we will apply it more selectively,” said Laurel.
Launched on Jan. 20 with an initial limit of ₱58 per kilo, the DA initiated the MSRP to ensure that rice remains affordable for consumers while maintaining the profitability of the rice industry.
Rice prices in the country were monitored to remain high despite the decline in world market prices and the rice tariff cuts from 35 to 15 percent last year.
The MSRP was gradually reduced to ease the transition for the rice industry. It slid to ₱55 on Feb. 5 and went down further to ₱52 on Feb. 15.
Before the price cap, imported rice that was five percent broken was sold between ₱62 and ₱64 per kilo.
Despite calls for a more immediate and substantial reduction, the DA chief has insisted on a slow rollout to avoid destabilizing the industry.
Laurel noted that a gradual transition would allow retailers to “liquidate higher-priced stocks and renegotiate contracts with suppliers.”
He earlier projected that imported rice could fall below ₱50 per kilo, provided that world market prices remain stable and a maximum landed cost of $550 per metric ton (MT) for five percent broken rice.
Last week, the landed cost of five percent broken rice was quoted at $490 per MT.
“We will review the numbers in the coming days to determine if there's room to lower the MSRP further,” said Laurel.
“As of now, there could be scope for additional reductions, but we’ll have to see,” he added.
