Gov’t eyes below P50/kg MSRP on imported premium rice by March
Metro Manila, Philippines - A trader-calculated price range for imported premium rice may go below P50 per kilogram by March, the Department of Agriculture (DA) said on Friday, Jan. 24, in what is seen as a signal for a significantly lower maximum suggested retail price (MSRP).
Agriculture Secretary Francisco Tiu Laurel Jr. said the early announcement is a “window for an orderly transition” to allow rice traders to “liquidate higher-priced stocks and renegotiate contracts with suppliers.”
The DA has set an MSRP for imported premium rice, a grain with 5% brokenness, at P58 per kilogram beginning Jan. 20.
In a statement, Laurel said the government would gradually lower the price ceiling to P55 by Feb. 5, P52 by Feb. 15, and possibly P49 by March.
This, however, assumes constant global prices of the staple. Laurel said the current maximum landed cost for 5% broken rice is at $530 to $550 per metric ton.
Citing customs data, the DA said imported rice fetches around $700 per metric ton.
“As of Wednesday, the price of 5% broken rice from Asian exporters ranges from $413 to $472 per metric ton, with Vietnam offering the lowest price at $413,” the DA said. “Vietnam has quoted the 25% broken variety at a price of USD387 per metric ton. These prices exclude freight and other costs, and tariff.”
Recognizing calls for an MSRP substantially lower than P58, Laurel defended the gradual reduction, saying, “You cannot just shock the market.”
He said the DA is finalizing with the Department of Trade and Industry the revised labeling guidelines on rice before expanding the coverage of the MSRP “per type of rice.”
The MSRP on imported premium rice was the next step after last year’s tariff cut did not have a significant impact on retail prices.
Delayed rice emergency
Meanwhile, Laurel told a Malacañang briefing that he has yet to receive the signed resolution of the National Price Coordinating Council urging him to declare a food security emergency.
He said the National Food Authority (NFA) has a plan that could be announced next week on the release of rice buffer stock — the bottomline of the food security emergency declaration.
The law limits the NFA from selling buffer stocks only through government entities, and except under a food security emergency declaration.
Laurel said letters of intent have been issued to local government units, government-owned and -controlled corporations, the military, and police to determine the volume of rice to be rolled out.
