DA eyes selling P42/kilo Kadiwa rice at major public markets

The Department of Agriculture (DA) is looking at rolling out its Kadiwa Rice-for-All program, where it sells rice at P42 per kilo, at major public markets in a bid to address the still elevated retail rice prices.

In a statement on Thursday, the Agriculture Secretary Francisco Tiu Laurel Jr. said the DA is now in talks with importers who committed to supply Kadiwa rice at P42 per kilo.

Tiu Laurel said the move is seen to help bring down the retail price of rice while maintaining healthy market competition.

The Agriculture chief explained that selling P42 per kilo of rice in major public markets was arrived at after the DA saw a discrepancy between reduced tariffs on imported rice and the “unusually high” prices at the retail level.

“Even with the tariff reduction, retail prices remain unusually high,” he said.

“I have actual price bulletins of wholesale imported rice, and it’s really only at P37 to P38 per kilo. With lower tariffs and declining international prices, there's no reason for the continued high retail prices,” he added.

Tiu Laurel said that since the implementation of Executive Order No. 62 in July, which reduced rice tariffs from 35% to 15%, the DA has been actively engaging with importers and retailers to encourage price reductions.

However, he said that the “progress has been slow,” prompting DA to take a more direct approach.

“We’ve tried to avoid selling rice in major public markets to protect the livelihood of rice vendors,” the Agriculture chief said.

“But since they haven’t significantly lowered prices for well-milled and regular-milled rice, we are now forced to step in and offer Kadiwa rice. This will allow us to supply consumers directly and compete with retailers,” he said.

The DA chief said the wider Rice-for-All rollout will be undertaken by agency in coordination with the Department of Interior and Local Government, Department of Trade and Industry, Department of Labor and Employment, Department of Social Welfare and Development, and units of the Office of the President to support the KADIWA ng Pangulo program.

An agreement signed in July 2023 by the various agencies had determined their roles in supporting local government units to establish and operate Kadiwa ng Pangulo centers.

Nevertheless, Tiu Laurel cited the positive impact of EO 62.

“If the tariff had not been reduced, rice prices would surely be higher. Prices tend to increase quickly but decrease slowly—if at all. Nevertheless, we will continue our efforts to push prices down,” he said.

The DA chief said the Agriculture Department’s plan came amid increased demand for rice due to disaster relief operations and reduced palay production caused by El Niño and recent typhoons.

While local rice production struggles to meet the country’s growing consumption, the tariff reduction has boosted the national rice inventory, providing much-needed market stability, according to the Agriculture chief.

“Ensuring affordable rice for Filipino families remains one of our top priorities,” Tiu Laurel said.

“We are committed to seeing these efforts through for the benefit of Filipino consumers,” he added.
—Ted Cordero/RF, GMA Integrated News