P55 per kilogram cap on imported rice takes effect on Feb. 5

MANILA, Philippines — The price of imported rice sold in Metro Manila markets will be capped at P55 per kilogram starting Wednesday, February 5. 

The Department of Agriculture (DA) reminded retailers on Tuesday, February 4, that the maximum suggested retail price for imported rice will be lowered from P58 to P55 per kilogram as part of their efforts to bring down prices. 

Current prices of rice, whether imported or local, have reached beyond P60 per kilogram in Metro Manila. 

DA previously explained that the gradual decline in the price cap is meant to avoid destabilizing the industry. It aims to further lower it to P52 per kilogram by February 15 and P49 per kilogram by March. 

House lawmakers investigating the sudden spike in agricultural commodity prices, potential collusion among traders and retailers, and smuggling have criticized the move, arguing that the price cap remains too high.

However, the DA said it is also meant to give enough time for importers to transition to the lowered prices. 

Agriculture Secretary Francisco Tiu Laurel stated that the scheduled price cap was set after extensive consultations with stakeholders in the rice industry.

Aside from the price cap, which is being piloted in Metro Manila, the DA declared a food security emergency for rice on Monday, February 3.

RELATED: DA declares food security emergency to curb rising rice prices

This follows President Ferdinand Marcos Jr.’s order to lower tariffs on imported rice from 35% to 15%, which was unable to address the high prices. While the move aimed to boost market supply to meet demand, rice prices remained elevated.

The food security emergency, through the amended Agricultural Tariffication Law, allows the National Food Authority (NFA) to release rice buffer stocks to the market at really low prices.

On Tuesday, the NFA announced it would sell rice to local government units and government-owned and controlled corporations (GOCCs) at P33 per kilogram, and to consumers at P35 per kilogram.

The buffer stocks, stored in NFA warehouses, will be replenished through the purchase of rice from local farmers. It will release 300,000 metric tons of rice over a span of 10 months.

However,