DA slashes price of 'Rice-for-All' grain to P38/kilo

The Department of Agriculture (DA) is reducing further the price of the grain staple being sold at Kadiwa stores under its "Rice-for-All" initiative.

In a statement Thursday, Agriculture Secretary Francisco Tiu Laurel Jr. said the price of the 25% broken rice variety sold at Kadiwa stores will be reduced from the current P40 per kilo to P38 per kilo.

"This price reduction will take effect on Friday, just ahead of the implementation of the maximum suggested retail price (MSRP) of P58 per kilo for 5% broken imported rice," Tiu Laurel said.

The MSRP for imported rice is set to be enforced beginning Monday, January 20, initially targeting Metro Manila markets.

The measure will be reviewed monthly to reflect fluctuations in global market prices and tariff rates, with plans to extend the program to other key cities nationwide.

Should imported rice prices frequently exceed the MSRP, the DA intends to implement a stricter suggested retail price (SRP) framework, accompanied by fines and penalties for violations. 

Tiu Laurel said the MSRP framework includes a nominal profit margin of approximately P10 per kilo above the landed cost of imported rice, excluding specialty rice varieties such as malagkit (sticky rice), Japanese, and black rice.

"If world rice prices remain stable, we anticipate a reduction in the MSRP after the February review," he added.

The current rice tariff, reduced from 35% to 15% under President Ferdinand Marcos Jr.'s Executive Order (EO) 62 last July 2024 to mitigate rice costs, is also under evaluation, according to the DA.

This tariff policy mandates a review every four months, with the next assessment scheduled for March.  

The National Economic and Development Authority (NEDA) said last December that EO 62 did not lead to a reduction in rice prices as anticipated. Dominant market players, NEDA said, were pricing goods above competitive levels, making retail prices nearly equal to locally produced rice.

In addition to the "Rice-for-All program," a critical component of the Kadiwa ng Pangulo initiative, features other affordable rice options for consumers such as 5% broken grains priced at P45 per kilogram a 100% broken variety, popularly known as "Sulit Rice," available at P36 per kilo.

Furthermore, the "Rice-for-All program" is complemented by P29-rice to ensure even wider access to affordable rice varieties.

The DA said the affordable rice offerings are being expanded across public markets and Kadiwa centers to better serve Filipino consumers. — VDV, GMA Integrated News