Significant drop in rice prices to be felt in January: DA

By Stephanie Sevillano, Philippine News Agency

FILE: Various rice varieties at a retail store in San Andres, Manila on Monday (May 6, 2024). (PNA photo by Yancy Lim)

MANILA – With the reduced tariff on imported rice, a significant drop in its market price is expected in January, according to Department of Agriculture (DA) Secretary Francisco Tiu Laurel Jr. on Wednesday.

“Since demand for food usually spikes in December, we anticipate seeing a more substantial drop in rice prices by January,” he said in a statement.

Economic managers earlier projected around PHP5 to PHP7 per kilogram drop in rice retail prices due to tariff reduction from 35 percent to 15 percent under Executive Order No. 62.

Tiu Laurel said the public may observe the prices declining by October.

DA Assistant Secretary Arnel de Mesa, however, said they are already monitoring lower price levels as early as now.

“We can say na mababa na iyong presyo kasi may nakita na tayo na PHP42 sa limang pamilihan… coming iyan sa PHP50 noong mga nakalipas na buwan (that the price is dropping because we have seen some PHP42/kg in some markets… That’s coming from PHP50/kg level),” he said in a separate phone interview.

As of Tuesday, the prevailing price of imported regular-milled rice in Metro Manila is set at PHP42/kg and PHP45/kg to PHP55/kg for imported well-milled rice, according to DA-Bantay Presyo.

The local regular-milled rice ranges from PHP45/kg to PHP51/kg, while the local well-milled rice ranges from PHP46/kg to PHP55/kg.

Farmgate prices

Tiu Laurel assured to monitor the welfare of local farmers as the country approaches the wet harvest season.

“Given the wet season, some areas are seeing palay being bought at PHP16 to PHP 17 per kilo. We need to monitor this closely to ensure farmers are not shortchanged,” he said.

To date, the national average of fresh palay is at PHP19.42/kg, lower than last August’s PHP20.51/kg.

“Iyong (The) lowest is PHP16.5, the highest was PHP21 nitong (this) September… Nag-start na rin kasi ngayon iyong harvest season (the harvest season has also started),” De Mesa said.

Federation of Free Farmers Cooperatives national manager Raul Montemayor, meanwhile, urged the DA to recommend bringing the higher tariff back, especially during the peak harvest season in October to November.

“Pagdating ng anihan, kasi ang dami ngang supply dahil umaani ang mga magsasaka, iyon iyong time na dapat ibalik nila iyong taripa sa (When the harvest comes, because there’s a huge supply due to harvesting farmers, that’s the time they should revert to the old tariff of) 35 percent,” he said.

“Kung ang dami-dami na ngang ina-ani locally, sabayan mo pa ng local imports dahil binabaan mo iyong tariff, ang resulta niyan oversupply. Sobra-sobra ang supply sa merkado, babagsak ang presyo ng palay (If there’s so much local harvest, alongside rice imports at the lower tariff, it will result into an oversupply. That’s more than enough supply in the market, the farmgate price of palay will surely drop),” Montemayor added.

De Mesa, however, assured that the National Food Authority (NFA)’s higher buying price of palay is still in place in case traders take advantage of local farmers.

“So long as hindi magkaroon ng pagbabago, and I don’t think there will be changes at the moment doon sa (in the) buying strategy ng (of) NFA,” he said.

The NFA’s higher price ranges from PHP17/kg to PHP23/kg for fresh or wet palay; and PHP23/kg to PHP30/kg for clean and dry palay.

“Hindi pa naman nauubos iyong pondo nila… Remember, mayroon pa silang excess fund noong last year na pwedeng magamit pa hanggang (They have not yet utilized all their funds. Remember, they still have excess fund last year which can still be utilized until) this year,” he added.

De Mesa also said they are intensifying efforts to improve the capacity of NFA’s post-harvest facilities including warehouses, drying, and milling.

To date, the NFA has PHP5 billion worth of funds for its post-harvest facilities.

He also assured continuous partnerships to boost investments in Agri infrastructures which will prevent further post-harvest losses.