Retailers give green light to DA's plan for affordable rice in grocery stores

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The Philippine Retailers Association (PRA) is welcoming the plan of the Department of Agriculture (DA) to have groceries and convenience stores sell affordable rice, ranging from P29 to P45.

PRA President Roberto Claudio gave this affirmation on the sidelines of the 2025 CEO Awards in Bonifacio Global City (BGC) on Monday evening, Jan. 27.

“Walang problema ‘yun (That’s no problem). For so long as the source is also cheap, retailers will [welcome it],” Claudio told reporters.

If it is feasible, he said retailers will also consider bringing down the rice prices further.

DA Secretary Francisco Tiu Laurel earlier announced that the rollout of affordable rice in retail stores will launch by mid-February or, at the latest, March 1.

This initiative will include the P29-per-kilo rice, which will only be available for the country’s vulnerable sectors, as well as the agency’s Rice-for-All (RFA) program.

Various rice grades are offered under the RFA, 
including RFA5 or the 5 percent broken rice priced at P45-per-kilo; RFA 25 or the 25 percent broken at P38; and RFA 100 or the 100 percent broken at P36.

Claudio, Chairman of Toby’s Sports, noted that rice is not a high margin product for most retailers.

“The problem is the people who are coordinating and bringing it in. That’s where the price discrepancies are incurring,” he explained.

When asked about the sector’s concerns about the program, Claudio said they are mostly apprehensive about the logistics and distribution channels.

“For some agricultural products, there is deficiency in storage, there is deterioration in rice, deterioration of vegetable, so it reduces the revenue of the farmers,” the PRA President said.

“We need to improve our channel of distribution, especially storage and logistics,” he added.

Food Terminal Inc. (FTI), a state-owned corporation, has been tasked by the DA to handle the supply and packaging of rice distributed through participating retail stores.

Over 3,200 retail outlets across the country, including SM, Robinsons, Puregold, 7-Eleven, and MerryMart, are expected to sell the affordable rice.

Claudio, for his part, said the government may harness artificial intelligence (AI) to improve the distribution channels of agricultural products such as rice.

At the same time, he said AI can also help further improve retailing in the country.

“[With AI] we can give better information for consumers, they can inquire for better specifications of the products and then, the intelligence assessment whether a product is good or bad,” he said.

Claudio, however, stressed that AI utilization is still under “calculation” period for retail firms since it may trigger a reduced need for manpower, if left unchecked.

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