The Department of Agriculture (DA) said on Friday it would gradually slash the maximum suggested retail price (MSRP) for imported rice in the coming weeks as it targets an MSRP of P49 per kilo by March.
“By February 5, the MSRP on imported rice will be brought down to P55. Then, by February 15, we will lower it further to P52,” said Agriculture Secretary Tiu Laurel.
“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 USD530 to USD550 per metric ton for 5 percent broken rice.”
The DA earlier set the MSRP for imported rice in Metro Manila at P58 per kilo starting January 20 to reflect the decline in the world prices. This is also in line with the decision of President Ferdinand Marcos Jr to cut the tariff to 15% from 35% since July last year.
Japanese black rice, red rice, basmati, imported malagkit, and locally produced rice are exempted from the MSRP implementation.
Citing the Bureau of Customs, Tiu Laurel noted that imported rice currently being sold was purchased at around US $700 per metric ton.
The price of 5% broken rice from Asian exporters ranges between US $ 413 to $472 per metric ton, with Vietnam offering it for only US $413. These prices are exclusive of freight, other costs, and tariff, the DA said.
“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,” said Tiu Laurel.
Tiu Laurel also said that once the DA and the Department of Trade and Industry finalizes the rice labelling guidelines, an MSRP per type of rice will soon be implemented.
The DA is still awaiting the resolution of the National Price Coordinating Council (NPCC), which earlier urged the department to declare a food security emergency for rice.
The NPCC earlier said the food emergency declaration would allow the National Food Authority to release the buffer stock of rice to stabilize prices.—LDF, GMA Integrated News
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