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The Department of Agriculture (DA) said the reduction in the tariff of imported rice and selling programs are “steps in the right direction” toward stabilizing the retail price of the staple. In July 2024, the DA noted that President Marcos reduced rice import tariffs to 15 percent from 35 percent while directing the agency to provide affordable rice through programs like KADIWA ng Pangulo and Rice-for-All.

To further support price stability, the DA set a new maximum suggested retail price (MSRP) for imported rice at P55 per kilo, down from P58 per kilo. Additionally, Agriculture Secretary Francisco P. Tiu Laurel Jr. declared a food security emergency, which will release National Food Authority (NFA) stocks to be sold at P35 per kilo through government entities.

Data from the PSA showed that well-milled rice averaged P54.63 per kilo in the second half of January, a slight decrease from P54.97 per kilo in December. In January 2024, the average price stood at P55.50 per kilo.

“Rice accounts for about 9 percent of the average consumer basket, a figure that rises to 18 percent for the country’s poorest households, making price stability crucial for food security,” Laurel said in a statement.

“The DA is now looking at prices of other food items, particularly pork, to arrest increases that could undermine inflation outlook and food security.”

According to the PSA, rice inflation in January was at minus 2.3 percent year-on-year and was at negative 0.9 percent compared to December, helping keep a lid on overall inflation rate steady at 2.9 percent for the month—the same pace in December.

“This is the lowest inflation rate for rice since June 2020, when we had a minus 2.8 percent,” said National Statistician Dennis Mapa as he announced inflation data for January last Wednesday. He added that current price trends suggest the deflation in rice prices will continue through July.

The deflation in rice prices in January was the first since the 0.1 percent decline in December 2021.

Figures from the PSA also indicated that food inflation at the national level rose to 4 percent in January 2025 from 3.5 percent in the previous month. In January 2024, food inflation was lower at 3.3 percent.

This accounted for 47.7 percent or 1.4 percentage points of the overall inflation in January 2025.

Source : businessmirror