THE Department of Agriculture (DA) said it is targeting to lower the maximum suggested retail price (MSRP) for imported rice to P49 a kilo by March, provided favorable pricing conditions persist, according to its top official.
During a market inspection at Cartimar Market, a private market in Pasay City, Agriculture Secretary Francisco Tiu Laurel Jr. said the MSRP will be slashed to P55 per kilogram “by February 1.”
“Then, by February 15, we will lower it further to P52. By March 1, hopefully, we will break P50 per kilo, with the MSRP at P49, as long as world prices remain as they are today — a maximum landed cost of $530 to $550 per metric ton for 5 percent broken rice,” he said on Friday, January 24.
The landed cost refers to the cost of shipping a specific product.
Tiu Laurel clarified that the government has no intention of destabilizing the rice industry, despite some stakeholders calling for a more immediate and substantial reduction.
“That is the main reason why it has to be a drawdown,” the DA chief said. “When we declared the MSRP at P58, a lot of people have criticized me as someone living in another planet,” he said.
“But the truth is we have a plan. You cannot just shock the market… a lot of people will go out of business, and many will resist our efforts, and that is what we are trying to avoid,” he added.
The agriculture chief expressed hope that by announcing the planned MSRP reductions early, industry players — traders, retailers, wholesalers, and importers — will have ample time to liquidate higher-priced stocks and renegotiate contracts with suppliers.The DA implemented the MSRP on Jan. 20 to address elevated retail prices of the staple Filipino food even if the government has already lowered the tariff rate and global prices are declining.
Last June, President Ferdinand Marcos Jr. signed Executive Order No. 62 which slashed the import duty on imported rice to 15 percent from 35 percent until 2028 to help stabilize prices of various commodities.
The MSRP excludes Japanese black rice, red rice, basmati, imported malagkit, and locally produced rice.
The DA previously implied it might introduce additional measures, such as price controls and ceilings, which could impose fines of up to P1 million on violators if the MSRP fails to bring down retail rice prices.
Aside from imposing an MSRP, the DA is keen on declaring a food security emergency on rice to get to the bottom of high retail prices.
Tiu Laurel said the DA has yet to receive the official copy of the National Price Coordinating Council (NPCC) resolution recommending the emergency declaration. However, a draft copy is being circulated to council members for their input.
The DA will review the official copy of the NPCC resolution for a few days before proceeding with the declaration, which could happen as early as February. (Jordeene B. Lagare © Philippine Daily Inquirer)
