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.
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FEATURED STORIES BUSINESS Alfonso lone Filipino in Forbes '50 over 50' list BUSINESS Alfonso lone Filipino in Forbes ‘50 Over 50’ list BUSINESS Ipilan Nickel starts ore exportsThe 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.
Article continues after this advertisement“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.
Article continues after this advertisement“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.
Article continues after this advertisementThe 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.
Article continues after this advertisementLast 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.
chaos crew slotThe 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.
Food security emergencyAside 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 draft has been given and they’re finalizing or have finalized already, and I’m actually assuming that it is already going around for signature,” he told reporters.
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.
NFA stocksCurrently, the agency is in discussions with select local government units (LGUs) to flesh out the details of distributing and selling National Food Authority (NFA) stocks nationwide.
“We cannot give all municipalities or LGUs or cities,” he said. “The strategy for minimal freight friction cost is to allocate to whatever is closest to the stocks.”
The DA formed a technical working group to craft the implementing guidelines for Section 6 of the amended Rice Tariffication Law, which covers the declaration of a food security emergency on rice due to a supply shortage or extraordinary increase in rice prices.
According to the DA’s Special Order No. 139, the guidelines will set the parameters or formula for determining rice supply shortage or extraordinary increase in rice prices. It is targeted to be released by the end of the month.
The NFA has almost 300,000 metric tons of rice for disbursement.
Under the law, existing NFA buffer stocks may be sold to areas experiencing a rice supply shortage or an extraordinary increase in rice prices once the emergency is in effect.
“They can book already. Maybe the delivery (of NFA stocks) is maybe February 7 to 15,” he added.
Kadiwa riceMeanwhile, the DA aims to roll out cheaper rice from Kadiwa at supermarkets and convenience stores nationwide by Feb. 15 or, at the latest, March 1.
Tiu Laurel said the DA will hold meetings with the Food Terminal Inc. and major retail chains to iron out the mechanism for the sale of Kadiwa rice.
Mitsubishi Motors Philippines Corp. (MMPC) said that it, along with dealer partner SJ Legacy Motors Inc., inaugurated their new branch at the SM City San Jose Del Monte on Sept. 27.
This program will offer aging NFA stocks via the DA’s P29-per-kilo rice program, which sells quality rice to vulnerable sectors such as senior citizens, persons with disabilities, solo parents, and indigents.
Another component of this initiative is the sale of various rice grades, including the 5-percent-broken variety, 25-percent-broken variety, 100-percent-broken variety, and Sulit Rice. Broken rice refers to rice grains that are fragmented or broken during processing, such as milling.
“There’s a chance that it (pricing) might be a little bit more, but we’re trying to keep it at par,” Tiu Laurel said.
The DA had disclosed that it was seeking partnerships with major retail chains to offer discounted rice, with the agriculture chief stating that supermarkets, groceries, and convenience stores were receptive to the DA’s proposal.
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It had said the network of more than 3,200 retail outlets, including SM, Robinsons, 7-Eleven, Puregoldrich 888, and MerryMart, was crucial in stabilizing the retail prices of this Filipino staple.
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