Lower MSRP on imported premium rice possible after two months, DA chief says

Metro Manila, Philippines - Agriculture Secretary Francisco Tiu Laurel Jr. floated the possibility of further lowering the price cap on imported premium rice after two months or after the harvest season.

The Department of Agriculture (DA) implemented on Monday, March 31, P45 per kilogram as the maximum suggested retail price (MSRP) on imported premium rice in Metro Manila markets.

In a chance interview, Laurel said he initially planned to bring down further the price ceiling to P42 but palay prices dropped during the harvest season.

“I think it is prudent na [that] we will stop at MSRP 45 for the next two months hanggang matapos ‘yung harvest season then makita ang sitwasyon [until the end of the harvest season and look at the situation],” Laurel said.

“Para naman ‘yung mga traders na bumibili at mga rice mills na bumibili sa mga farmers ng palay ay hindi mag-speculate o matakot, at bumili sila ng palay naman sa presyong hindi malulugi ang ating farmers at kumita ang ating farmers ng konti,” he added.

[Translation: So that traders and rice mills could buy palay from farmers so that they won’t speculate or get afraid, and at a price that farmers will somehow have profits.]

The MSRP was implemented in January, initially at P58/kg, as costs have soared to over P60/kg. The policy was introduced after President Ferdinand Marcos Jr.’s order for a tariff cut on imported rice to 15% from 35% in June last year did not have significant results.

Laurel said there is a “general direction” from the government to recommend a “slight increase” in rice tariffs, after last week’s review with Socioeconomic Planning Arsenio Balisacan and industry players.

“Ang plano namin, kami ni Secretary Balisacan, we’ll seek a meeting with the president so that we can share our thoughts with him on this matter. But malamang papunta na roon ang direction, pero gradually lang,” he said of possibly increasing the duties.

[Translation: Secretary Balisacan and I are planning to seek a meeting with the president so that we can share our thoughts with him on this matter. But the direction is probably to increase but only gradually.]

The next review on the imposed tariff on imported rice will be in June.