DA’s MSRP slashes rice prices, eases inflation woes
Metro Manila, Philippines - The Department of Agriculture (DA) has successfully lowered rice prices through the implementation of a maximum suggested retail price (MSRP) on imported rice, bringing relief to consumers without destabilizing the rice industry.
Before the DA enforced the MSRP in early February, imported rice with 5% broken grains was sold for around P64 per kilo, despite global price declines, tariff reductions, and a stronger peso.
In a statement released on Sunday, the Philippine Statistics Authority recognized the MSRP as a key factor in curbing inflation, with March's inflation rate coming in lower than market and central bank expectations.
The MSRP initially debuted at P58 per kilo but was further reduced to P49 per kilo by March 1. Agriculture Secretary Francisco P. Tiu Laurel Jr. stated that another price cut could be expected by the end of March if global rice prices continue to drop, and the peso maintains its appreciation against the US dollar.
"If the current trend in world rice prices persists and the peso remains strong, we might lower the MSRP for imported rice to around P45 per kilo by March 31," he said in a statement.
The DA's price-control measure followed extensive consultations with industry stakeholders to ensure the rice sector remained stable while consumers benefited from lower costs.
The initiative also aligned with President Ferdinand Marcos Jr.'s decision to reduce rice tariffs from 35% to 15%, set to take effect in July 2024. The global rice market also received a boost after India lifted its year-long ban on the export of non-basmati rice in September 2023.
As a result, rice prices have fallen to their lowest levels in two years, with some varieties now trading below $400 per metric ton.
Laurel noted that the landed cost of high-quality Vietnamese rice (5% broken grains) has dropped to approximately $490 per metric ton, marking a significant decline of over $200 from November 2024 levels and $80 from early January 2025.
Meanwhile, the Philippine peso strengthened in early March after months of trading above P58 against the US dollar. Data from the Bangko Sentral ng Pilipinas showed that the peso, which hit a low of P59 in November 2024, has now recovered to P57.225 per US dollar as of March 11, 2025.
Laurel also explained in a statement that they assured the public that lower rice prices and tariffs would not affect the P30 billion annual budget allocated to the Rice Competitiveness Enhancement Fund (RCEF), which supports local farmers under the amended Rice Tariffication Law.
He emphasized that provisions have been made to sustain RCEF funding through the General Appropriations Act starting in 2026.
The expanded RCEF, backed by rice tariff collections from previous years, will continue for six more years through 2031, ensuring long-term support for local rice farmers and strengthening their competitiveness in the global market.
