Manila: The supply and prices of retail rice are expected to remain stable despite proposals to impose a tariff hike on imported rice and a halt to rice imports, the Department of Agriculture (DA) said Tuesday. This announcement came after the DA requested a gradual reversion of tariffs on imported rice to 25 percent from the current 15 percent, as well as a proposed temporary ban on rice imports for 45 to 60 days starting next month.
According to Philippines News Agency, the DA spokesperson Assistant Secretary Arnel de Mesa emphasized in an interview that the country's current rice volume, along with the upcoming harvest, will prevent significant price impacts. As of July 1, the nation's rice stock inventory reached a four-year high at 2.815 million metric tons (MT), comprising over 1.3 million MT in commercial stock, 1 million in household stock, and 447,575 MT with the National Food Authority (NFA), citing data from the Philippine Statistics Authority (PSA).
Retail prices of rice in Metro Manila remain steady. Premium imported rice ranges between PHP42 to PHP48/kg, imported well-milled rice between PHP38/kg and PHP50/kg, and imported regular milled rice from PHP30/kg to PHP45/kg. Prices for local rice similarly show stability, with premium local rice between PHP42/kg and PHP60/kg, local well-milled rice from PHP37/kg to PHP52/kg, and local regular-milled rice from PHP30/kg to PHP45/kg.
Arnel de Mesa also pointed out that a global abundance of rice is driving down prices in the international market. As of June, Indian 5 percent broken rice was priced at USD379 per MT, down from USD425.4 in January, according to the Food and Agriculture Organization of the United Nations. Meanwhile, Vietnamese rice was at USD382.5 per MT, and Thailand's 25 percent broken rice was at USD407.5/MT.
De Mesa assured that the current rice inventory, along with the impending local palay harvest, will meet the country's daily requirement of 35,000 MT.
On the topic of rice deflation, de Mesa highlighted that Filipinos are benefiting from various government interventions, resulting in continuous rice deflation. As reported, rice inflation eased to 15.9 percent in July, down from 14.3 percent in June, according to PSA data.
De Mesa praised the effectiveness of the government interventions under the leadership of President Marcos and the DA, headed by Secretary Francisco Tiu Laurel Jr. These efforts have led to falling rice prices for 13 consecutive months.
A notable initiative is the "Benteng Bigas Meron (BBM) Na," which offers PHP20/kg of "aging but good quality stocks" of NFA rice to vulnerable sectors and minimum wage earners, available at 757 Kadiwa ng Pangulo centers, pop-up stores, and accredited sites. Since its inception in May, this initiative has benefited nearly a million Filipinos, including senior citizens, persons with disabilities, and low-income households.
In addition, other measures include the implementation of Executive Order 62, reducing tariffs on imported rice to 15 percent from 35 percent, and adjusting the maximum suggested retail price (MSRP) for 5 percent broken imported rice. As of July 16, the MSRP for such rice is PHP43/kg, down from PHP58/kg in January.
