The Department of Agriculture (DA) will implement a maximum suggested retail price (MSRP) of ₱58 per kilo for imported rice beginning January 20, Agriculture Secretary Francisco Tiu Laurel Jr. announced Friday, Jan. 10.
“This MSRP aims to strike a delicate balance between business sustainability and the welfare of consumers and farmers. We must ensure the price of rice is fair and affordable even as we make sure that the rice industry remains profitable. We cannot allow the greed of a few to jeopardize the well-being of an entire nation,” said Laurel.
According to DA, the new MSRP will be imposed initially in Metro Manila and reviewed monthly to reflect market conditions, including global price movements.
“We think that if the current direction of global prices holds, the MSRP will be lower after the review,” the DA chief added.
However, Laurel noted that no specific sanctions have been established yet for rice retailers who fail to comply with the ₱58 MSRP.
“Wala pang sanction. Per the meeting yesterday, maximum suggested tayo. Ang sinasbi namin sa publiko, ito lang ang dapat na maximum na presyo niyan (There are no sanctions yet. Per the meeting yesterday, we are only implementing a maximum suggested price. What we are telling the public is that this should be the maximum price),” he said in an interview with reporters.
The DA chief said that if the situation worsens, the Department of Trade and Industry (DTI) and the agriculture department would be forced to recommend to President Marcos Jr. the imposition of price ceilings.
“Kung talagang hindi sila susunod, kung may stituation na talagang mapipilitan ang DTI at DA na control with sanctions, we will have to recommend to the President price ceilings. Ang Presidente ang mag-de-declare ng price ceilings (If they will refuse to comply, and if the situation demands that the DTI and DA enforce control with sanctions, we will have to recommend price ceilings to the President. It is the President who will decide on and declare the price ceilings),” he stated.
Meanwhile, Trade and Industry Secretary Cristina Roque expressed her agency’s full support for the DA’s pricing strategy, saying the DTI will assist in monitoring and enforcing the new rice prices.
“The DTI fully supports the DA in all its initiatives. We will help in the monitoring and enforcement of prices set by the DA,” Roque said.
Efforts to stabilize prices
The imposition of an MSRP follows weeks of consultations with rice millers, traders, importers, retailers, and government bodies, including the DTI, Department of the Interior and Local Government, Department of Finance, and the Philippine National Police. These discussions were aimed at addressing persistently high rice prices, despite tariff cuts implemented by President Marcos Jr. and declining global prices.
In 2024, the country’s rice import volume hit a record 4.7 million metric tons, with the lower tariff disincentivizing smuggling and allowing markets to reflect actual imports.
Laurel said the ₱58 per kilo ceiling is based on data and profit margins provided by rice importers and retailers.
“Imported five percent broken rice should not exceed ₱58 per kilo. For rice with a higher percentage of broken grains, the price should be much lower,” he explained.
Farmer's group: MSRP for imported rice should be ₱45/kilo
The Samahang Industriya ng Agrikultura (SINAG) criticized the DA’s plan to set the maximum suggested retail price for imported rice at ₱58 per kilo, asserting that it should only be pegged at ₱45 per kilo.
According to SINAG, prior to the implementation of Executive Order (EO) 62, importers and the National Economic and Development Authority (NEDA) projected a ₱7-10 per kilo reduction in rice prices due to the 15 percent tariff on imported rice.
“We’ve said all along na 'yung matitipid ng importers sa tariff reduction ay hindi naman maipapasa sa consumers kaay’t hindi sagot ang tariff reduction (We’ve said all along that the savings from the tariff reduction will not be passed on to consumers, so a tariff cut is not the solution),” SINAG said in a statement.
The farmers’ group cited last month’s marathon hearings of the House Committee on Agriculture and Food, which, they said, confirmed their position that imported rice should retail at ₱42-45 per kilo, based on a landed cost of ₱35-38 per kilo.
“Ang ipinangako ng importers ay ₱42-45/kilo if EO 62 was implemented, which Congress vetted to be the real price ng imported rice. Bakit hindi doon i-peg (₱45) ang max SRP? If at ₱58 ang MSRP, panalong panalo ang importers at importer-traders. Extended ang Christmas season para sa mga importers (Importers promised Congress that with EO 62, imported rice would be priced at ₱42-45 per kilo. Why not peg the MSRP at ₱45? If the MSRP is set at ₱58, importers and importer-traders will benefit greatly—it’s like the Christmas season is extended for them),” SINAG argued.
The group also reiterated its call for the strict enforcement of the MSRP, including punitive measures. They suggested using the Anti-Agricultural Economic Sabotage Act (RA 12022) as the legal basis to impose non-bailable charges against anyone found to be profiting excessively from rice and other basic food items.