The maximum suggested retail price (MSRP) for imported rice will be lowered to P49 per kilo starting March 1 marking the first time since the MSRP was introduced six weeks ago that it will slip below the P50 mark.
However, Agriculture Secretary Francisco Tiu Laurel Jr. clarified that the MSRP will not be implemented nationwide.
Instead, the Department of Agriculture (DA) will take a more “surgical” approach, imposing the MSRP selectively in Metro Manila, key cities, and other urban centers.
“In many provincial areas, we’ve seen prices of imported rice already lower than the MSRP.”
“In many provincial areas, we’ve seen prices of imported rice already lower than the MSRP. So, we will apply it more selectively,” Tiu Laurel explained.
The DA first introduced the MSRP on January 20, setting an initial price of P58 per kilo.
This was a non-coercive measure aimed at steering retail prices of imported rice to reflect the steady decline in world market prices and the decision of President Ferdinand Marcos Jr. to slash rice tariffs from 35 percent to 15 percent, effective last July. The MSRP was gradually reduced to ease the transition for the rice industry.
Before the introduction of the MSRP, imported rice that is 5 percent broken was sold between P62 and P64 per kilo.
“There could be scope for additional reductions, but we’ll have to see.”
“We will review the numbers in the coming days to determine if there’s room to lower the MSRP further. As of now, there could be scope for additional reductions, but we’ll have to see,” Agriculture chief said.
In January, the agriculture head had projected that the price of imported rice could fall below P50 per kilo, provided world market prices remain stable, with a maximum landed cost of $550 per metric ton for 5% broken rice. The landed cost of 5% broken rice was quoted at $490 per metric ton last Feb. 21.
