The maximum suggested retail price (MSRP) for imported rice, currently set at P58-per-kilo, will gradually decrease with a potential to go as low as P49 in March if global prices remain stable, according to Agriculture Secretary Francisco Tiu Laurel.

The DA implemented the MSRP on Monday, Jan. 20, to ensure that rice remains affordable for consumers while also supporting the profitability of the rice industry.

Rice prices in the country were monitored to remain high despite the recent drop in world prices and the tariff cut ordered by President Ferdinand “Bongbong” Marcos Jr last year.

Starting Feb. 5, Laurel said the MSRP on imported rice will be brought down to P55. By Feb. 15, this will be lowered to P52.

“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 $530 to $550 per metric ton for 5 percent broken rice,” he said in an interview on Friday.

The DA chief explained that announcing these plans early will give industry players a window for an “orderly transition”.

“This would allow them to liquidate higher-priced stocks and renegotiate contracts with suppliers,” he said.

Laurel said the Department of Trade and Industry (DTI) is currently finalizing the guidelines for rice labeling. Once this is released to the public, the DA shall implement the MSRP for each type of rice.

Japanese black rice, red rice, basmati, imported malagkit (glutinous rice), and locally produced rice are exempted from the MSRP.

The agriculture secretary said stakeholders in the rice industry have been calling for a more immediate and substantial reduction. However, he insisted on having a slow rollout of the MSRP to avoid destabilizing the industry.

"When we declared the MSRP at P58, a lot of people have criticized me as someone living in another planet. But the truth is we have a plan,” said Laurel

“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,” he stressed.

According to Laurel, imported rice currently being sold in public markets was purchased at around $700 per metric ton.

Citing data from the Bureau of Customs (BOC), he pointed out that the price of 5 percent broken rice from Asian exporters ranges from $413 to $472 per metric ton (MT).

Vietnam, in particular, is offering the lowest price at $413. The Southeast Asian country has quoted the 25 percent broken variety at a price of $387 per MT.

The DA has been closely monitoring public markets, particularly in Metro Manila, to examine their compliance with the MSRP. 

It warned that the price cap would be strictly enforced, with potential violations, once the official guidelines are released in February.