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Kadiwa stores' P42 per kilo of rice is unsustainable, says industry expert

MANILA, Philippines — The government’s sale of rice at P42 per kilogram in Kadiwa outlets for vulnerable populations is unsustainable, an agricultural association of farmers said.  

Raul Montemayor, national manager of the Federation of Free Farmers Cooperative (FFF), said on Friday, November 29, that even Kadiwa outlets face limited supplies, often resulting in stock shortages.

“In one day, we consume about 35,000 tons... Ilan lang naman ang aabutin ng kadiwa outlets na 'yan (Those Kadiwa outlets can only cover so much),” he said in an interview with Super Radyo 594.

The Department of Agriculture plans to sell rice at P42 per kilogram at Kadiwa stores under its Rice-for-All program, which will cater to senior citizens, solo parents, persons with disabilities and members of the Pantawid Pamilyang Pilipino Program.

How many Kadiwa stores? The government is expecting 179 Kadiwa stores to be established nationwide by the end of 2024. It seeks to reach 300 by April or June 2025. 

Agriculture Secretary Francisco Tiu Laurel Jr. said on Thursday, November 28, that he is coordinating with importers who promised to supply the rice at P42 per kilo. 

To incentivize importers, its main source of rice supply for the program, the government issued Executive Order 62 in July 2024, reducing rice tariffs from 35% to 15%. 

Despite this, Tiu Laurel said that retail prices remain high, adding that the wholesale price of imported rice is around P37 to P38 per kilogram.

Montemayor explained that farmgate prices of palay have been falling due to the influx of imported rice. He added that the wholesale price should only have a markup of P2 to P4 per kilogram when sold at retail in markets.

The cost of retail imported rice. The DA’s price monitoring showed that, from November 18 to 23, the price of imported commercial rice in Metro Manila markets ranged from P44.80 to P59.19 per kilogram, depending on quality.

Given these high prices, FFF suspects that retailers are “hitting the jackpot” by increasing rice prices by P10 to P20 per kilogram, while the government fails to address the issue.

RELATED: Is P42 per kilo of rice a fair price for farmers, consumers?

Montemayor said the DA’s

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