Grocery store chain operator MerryMart Grocery Centers Inc. has entered into an agreement with the Department of Agriculture (DA) to sell rice at affordable prices, as low as ₱29 per kilo, in its establishments.

DA Secretary Francisco Tiu Laurel signed the Memorandum of Understanding (MOU) for this partnership on Friday, Jan. 31, with MerryMart President Jacqueline Anna Marie Gomez.

Laurel said this marks the agency’s first-ever collaboration with a major grocery chain in the country since announcing plans to expand the availability of affordable rice options nationwide.

“We need more good corporate citizens like MerryMart who are ready to extend a helping hand to assist the government in looking after the welfare of Filipinos, especially those who need relief from unwarranted price pressures,” he said.

The partnership between the DA and MerryMart will focus on the Kadiwa ng Pangulo (KNP) program—which offers the ₱29 rice and the Rice-for-All (RFA) program.

Under the RFA, various rice grades will be made available including RFA5 or the five percent broken priced at ₱45-per-kilo; RFA 25 or the 25 percent broken at ₱38; and RFA 100 or the 100 percent broken at ₱36.

The P29 rice, meanwhile, will be sold exclusively for the country’s vulnerable sectors.

Food Terminal Inc. (FTI), a state-owned corporation, shall coordinate the supply and packaging of rice for MerryMart.

Laurel said this is at “no cost for the government or the Department of Agriculture”.

As part of the MOU, MerryMart is also set to launch the MerryRice promo for all consumers, with rice available at ₱29 per kilo. This will run from Feb. 1 to March 31, 2025.

According to the company, the rice supply for this promo will come from local farmers.

MerryMart stated that this initiative is a component of its corporate social responsibility for Filipino families, especially those struggling with inflation.

The DA, meanwhile, said this partnership aligns with the government’s food security agenda, especially in ensuring that basic necessities are accessible at reasonable prices.

Under the agreement, the agency and the company have committed to do joint promotional strategies and media campaigns, as well as provide technical support for the rollout of such programs.

In addition to rice, the DA is also keen on distributing additional agri-fishery products across MerryMart-identified stores. 

While the agreement has been signed, the agency clarified that the MOU “does not impose any legally binding obligations” between the two parties.

The agreement will remain valid until Dec. 31, 2028. This is subject to amendments or termination by either party with prior notice.

Earlier, the Agriculture Secretary met with representatives of supermarkets, groceries, and convenience stores to encourage their support in widening the distribution of cheaper rice.

Laurel noted that these stores are crucial in reaching millions of consumers on a daily basis.

The DA said it is considering over 3,200 retail outlets across the country, including SM, Robinsons, Puregold, and 7-Eleven.