Negosyante News

January 16, 2025 9:02 pm

DA Cuts Price of ‘Rice-for-All’ Grain to ₱38 per Kilo

The Department of Agriculture (DA) has announced a further reduction in the price of its 25% broken rice variety under the Rice-for-All initiative, lowering it from ₱40 to ₱38 per kilo. The price cut, set to take effect Friday, aims to provide more affordable rice options for Filipino consumers.

Price Reduction Ahead of MSRP Implementation

Agriculture Secretary Francisco Tiu Laurel Jr. said the price adjustment coincides with the upcoming implementation of the maximum suggested retail price (MSRP) of ₱58 per kilo for 5% broken imported rice, which begins Monday, January 20, across Metro Manila markets.

The MSRP will be reviewed monthly to account for global market price fluctuations and tariff rates, with plans to expand its coverage to other major cities nationwide.

Stricter Measures for Imported Rice Prices

The DA has warned that if imported rice prices frequently exceed the MSRP, stricter suggested retail price (SRP) policies will be implemented. Violators could face fines and penalties.

The MSRP framework currently allows for a nominal profit margin of approximately ₱10 per kilo above the landed cost of imported rice, excluding specialty varieties such as sticky rice, Japanese rice, and black rice.

Affordable Rice Options through Kadiwa

In addition to the ₱38 rice, the Rice-for-All program includes other affordable varieties, such as:

  • 5% broken grains: ₱45 per kilo
  • 100% broken grains (“Sulit Rice”): ₱36 per kilo
  • ₱29-rice: Available to ensure even greater accessibility for consumers

These affordable options are part of the Kadiwa ng Pangulo initiative, which aims to bring cost-effective food staples closer to the public.

Tariff and Market Oversight

The rice tariff, reduced from 35% to 15% under President Ferdinand Marcos Jr.’s Executive Order (EO) 62 in July 2024, is under ongoing evaluation. While intended to lower rice costs, the National Economic and Development Authority (NEDA) observed last December that market players had been pricing imported rice above competitive levels, limiting its impact.

The tariff policy will be reviewed every four months, with the next assessment scheduled for March 2025.

Looking Ahead

The DA expects further price reductions in the MSRP after the February review, provided global rice prices remain stable. The government continues to expand the Rice-for-All initiative to include more public markets and Kadiwa centers, ensuring wider access to affordable rice for Filipino households.

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