The maximum suggested retail price (MSRP) for imported rice will be lowered from ₱49 per kilo to ₱45 beginning March 31, according to Agriculture Secretary Francisco Tiu Laurel.
In a statement, Laurel said the MSRP was reduced following the continued decline in global rice prices.
“At this level, the retail price of imported rice has now decreased by ₱19 per kilo compared to its price before we implemented the MSRP on Jan. 20,” he explained.
Before the price ceiling was imposed, rice prices were monitored to remain high despite a stronger peso and last year’s rice tariff cuts from 35 percent to 15 percent.
Imported rice, in particular, was sold within the range of ₱62 to ₱64 per kilo.
This prompted the DA to impose an initial limit of ₱58 per kilo in a bid to maintain rice’s affordability for consumers while upholding the profitability of the rice industry.
“The implementation of the MSRP followed consultations with industry stakeholders to ensure that price reductions would not destabilize the rice industry or compromise food security,” said Laurel.
The MSRP has seen a gradual reduction since its implementation. It dropped to ₱55 on Feb. 5, then fell further to ₱52 on Feb. 15, and finally declined to ₱49 on Feb. 26.
In September last year, India ended its year-long ban on the export of non-basmati rice, boosting global rice supply.
The Agriculture Secretary said this has since resulted in rice prices dropping to their lowest levels in over two years, with some varieties now priced below $380 per metric ton (MT).
Vietnam, the country’s main source of rice, also saw a recent decline in the price of five-percent broken rice to $490 per MT, which is $200 cheaper than in December.
The Philippine Statistics Authority (PSA) earlier recognized the MSRP for being an influential factor in reducing rice prices—pivotal in easing inflation last month.