The Department of Agriculture (DA) announced on Thursday that it is planning to conduct trial sales of blended local and imported rice in May to prevent potential spikes in retail rice prices. This initiative comes as the DA projects that without government intervention, the price of well-milled and premium rice could reach PHP60 to PHP62 per kilogram by September.
Current Rice Prices in Metro Manila
According to the DA's Bantay Presyo (Price Watch), as of Wednesday, premium imported rice in Metro Manila is selling at PHP55 to PHP63 per kilo. Imported well-milled rice is priced at PHP48 per kilo, while imported regular-milled rice ranges from PHP42 to PHP43 per kilo. In comparison, local premium rice is selling at PHP52 to PHP60 per kilo, and local well-milled and regular-milled rice are both at PHP50 per kilo.
Factors Behind the Anticipated Price Surge
The expected increase in rice prices is attributed to the combined effects of rising fuel and fertilizer costs, as well as the approaching El Niño phenomenon in the Philippines. These factors are likely to impact local rice production and supply.
Details of the Blended Rice Trial
Agriculture Secretary Francisco Tiu Laurel Jr. stated that the blended rice will initially be available in select retail outlets in Metro Manila. “Next month, there will be trials in retail outlets,” he told the Philippine News Agency.
DA spokesperson Assistant Secretary Arnel de Mesa explained that the initiative aims to stabilize prices by leveraging the lower cost of imported rice. “You will blend the cheaper imported rice with the expensive locally-produced rice so the resulting price will be lower,” he said. The suggested blend is 60 percent imported and 40 percent local rice, or alternatively, a 70:30 imported-to-local ratio.
Exploring Other Blends
In addition to the blend of local and imported rice, the DA is also considering the sale of blended rice and corn grits. The selling price for both blended rice products has yet to be determined, according to the DA.
