Department of Agriculture Lowers Maximum Suggested Retail Price for Broken Rice in Metro Manila

MANILA – The Department of Agriculture (DA) has made a significant adjustment to stabilize rice prices by lowering the maximum suggested retail price (MSRP) for 5 percent broken rice in Metro Manila. The new MSRP is set at PHP52 per kilogram, a reduction from PHP55.

Reasons Behind the Price Reduction

This change, effective from February 15, was prompted by the declining trend of global rice prices from major exporters such as India, Thailand, and Vietnam. According to data from the Food and Agriculture Organization of the United Nations, the prices of rice from these countries have seen a drop.

Specifically, the price of 5 percent broken rice from India is now approximately USD425.4 per metric ton (MT). Similarly, Vietnam’s rice sells at USD416 per MT, while 25 percent broken Thailand rice is priced at USD458.7 per MT.

DA’s Strategy and Compliance Expectations

In an exclusive interview, DA spokesperson Assistant Secretary Arnel de Mesa explained that the gradual decrease in MSRP gives retailers the flexibility to sell older stocks purchased at higher prices and negotiate terms with traders and importers.

“It was not abrupt,” de Mesa emphasized. “Retailers can already lower their prices, but it’s not forced. We want to consider the entire process smoothly.”

The DA anticipates full compliance with the new MSRP within two weeks.

MSRP History and Future Outlook

The MSRP for 5 percent broken rice was initially set at PHP58 on January 20 and reduced to PHP55 on February 5. Both adjustments were met with positive public response and compliance from local markets.

The DA is aiming to reduce the MSRP further to PHP49 per kilogram by March. This strategic move reflects the department’s continuous efforts to stabilize and lower rice prices, making it more affordable for consumers.

Current Rice Price Situation in Metro Manila

As of February 15, the prices of imported premium rice range from PHP48/kg to PHP58/kg, while local premium rice is priced between PHP46/kg and PHP61/kg in Metro Manila. Imported regular-milled to well-milled rice is priced from PHP38/kg to PHP46/kg, and local counterparts range from PHP35/kg to PHP54/kg.

Rice Inflation and DA’s Emergency Measures

Rice inflation peaked at 8 percent in August 2023 and rose to 17 percent in September 2023. The trend has continued with inflation rates exceeding 20 percent across several months in 2024.

To address these issues, the DA has declared a food security emergency for rice and ensured the accessibility of Rice-for-All options in Kadiwa ng Pangulo centers, kiosks in selected public markets, and railway stations in Metro Manila.

Conclusion

The Department of Agriculture’s continuous efforts to monitor and adjust rice prices reflect a commitment to addressing the financial burden on households and contributing to national food security. Consumers can expect further reductions in MSRP, making staple food products like rice more affordable.

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