DA Announces Further Price Reduction for Affordable Rice in the Philippines

The Department of Agriculture (DA) has introduced a new price reduction for rice under its “Rice-for-All” initiative. This move aims to provide Filipino consumers with more affordable access to staple grains just before a significant increase in the price of imported rice.

Details of Price Reduction

Agriculture Secretary Francisco Tiu Laurel Jr. announced that the price of 25% broken rice at Kadiwa stores will drop from P40 to P38 per kilo. This adjustment will be effective starting Friday, preceding the enforcement of the Maximum Suggested Retail Price (MSRP) of P58 per kilo for 5% broken imported rice, due to take effect on Monday, January 20 in Metro Manila.

Evaluation of Rice Prices

The MSRP for imported rice will be reviewed monthly to reflect changes in global market prices and tariffs, with plans to implement the scheme in other key cities nationwide. If imported rice prices consistently exceed the MSRP, stricter price controls and penalties will be imposed.

The current tariff on rice, reduced from 35% to 15% by President Ferdinand Marcos Jr. via Executive Order 62 in July 2023, is also under review. The next assessment is scheduled for March, aligning with the policy’s requirement for bi-annual evaluations.

Other Affordable Rice Options

The “Rice-for-All” program, a vital component of the Kadiwa ng Pangulo initiative, offers various affordable rice varieties:

• 5% broken grains at P45 per kilo
• 100% broken variety, known as “Sulit Rice,” at P36 per kilo
• P29 rice to ensure broader access to affordable options

These options are being made available across public markets and Kadiwa centers, aiming to better serve Filipino consumers.

Nominal Profit Margin Included

The MSRP framework includes a nominal profit margin of around P10 per kilo over the landed cost of imported rice, excluding specialty rice types such as malagkit, Japanese, and black rice.

Secretary Laurel expressed optimism about further price reductions after the February review, contingent upon stable global rice prices.

Expansion Plan

The DA plans to extend its affordable rice initiatives to more areas beyond Metro Manila, ensuring wider access to lower-cost rice options.

Conclusion

These policy adjustments and price reductions are part of the DA’s efforts to stabilize food costs and make staple ingredients more accessible to Filipinos. Consumers can look forward to these changes, which are designed to balance affordability and sustainability within the rice market.

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— VDV, GMA Integrated News