DA wants to gradually lower MSRP of imported rice to P49 by March

Francsico Tiu Laurel Jr.
—DA FB PAGE PHOTO

MANILA, Philippines — The Department of Agriculture (DA) wants to gradually lower the maximum suggested retail price (MSRP) for imported rice in the coming weeks, eyeing to slide it down to P49 per kilo by March.

According to DA chief Francisco Tiu Laurel Jr., the agency initially set the MSRP at P58 a kilo for prices of imported rice to reflect the decline in world prices.

“By February 5, the MSRP on imported rice will be brought down to P55. Then, by February 15, we will lower it further to P52. By March 1, hopefully, we will break P50 per kilo, with the MSRP at P49, as long as world prices remain as they are today—a maximum landed cost of USD530 to USD550 per metric ton for 5 percent broken rice,” said Tiu Laurel.

Despite calls for an “immediate and substantial reduction,” Tiu Laurel emphasized that the government wants to avoid “destabilizing” the rice industry.

“When we declared the MSRP at P58, a lot of people have criticized me as someone living in another planet. But the truth is we have a plan. You cannot just shock the market… a lot of people will go out of business, and many will resist our efforts, and that is what we are trying to avoid,” he explained.

One of the priorities of the DA is to give rice industry players — this includes traders, retailers, wholesalers, and importers — a window for an orderly transition.

“This would allow them to liquidate higher-priced stocks and renegotiate contracts with suppliers,” said Tiu Laurel.

He added that MSRP per rice type will also be issued once the rice labeling guidelines, which the DA is currently working out with the Department of Trade and Industry, are finalized.