The Philippine government has decided to maintain the current maximum suggested retail price (MSRP) for a key type of imported rice, as it finalizes plans to increase tariffs on rice imports in the coming year.
MSRP Holds Steady Amid Tariff Process
Agriculture Secretary Francisco P. Tiu Laurel Jr. announced that the MSRP for 5% broken imported rice will stay at 43 pesos per kilo for the time being. This decision comes as the government completes the necessary procedures to raise import duties.
The planned increase in rice import tariffs from 15 percent to 20 percent is scheduled to take effect on January 16, 2025, in compliance with regulatory requirements. Secretary Tiu Laurel emphasized that any potential adjustment to the MSRP will only be reviewed after the higher tariff is officially implemented.
"We have to complete the process before raising the tariff," Tiu Laurel stated, adding that formal policy action must precede any price adjustments to avoid market speculation.
Recovery from Low Palay Prices
This move is part of a broader government strategy to stabilize farmgate prices for palay (unmilled rice). The agricultural sector has faced significant pressure from heavy imports in recent years. In response, President Ferdinand Marcos Jr. ordered a four-month moratorium on rice imports starting in September to support local farmers during the peak wet-season harvest.
The impact of imports was stark last year, with rice imports reaching approximately 4.8 million metric tons. This influx dragged down palay prices to as low as 8 pesos per kilo in some areas before the import ban was imposed.
According to the Department of Agriculture, the import freeze has helped prices recover. Currently, wet palay is selling for around 17 pesos per kilo, while dry palay fetches about 23 pesos per kilo in several major producing regions.
Post-Ban Import Quotas and NFA Buying Prices
Once the temporary import ban expires on December 31, 2025, the government will permit an initial volume of 500,000 metric tons of rice to enter the country. From this total, about 50,000 metric tons will be allocated to Food Terminals Inc.
Looking ahead to the next harvest season around March, Tiu Laurel, who also chairs the National Food Authority Council, outlined the NFA's procurement plans. The agency intends to buy wet palay at 17 pesos per kilo and dry palay at 21 pesos per kilo.
The Agriculture Secretary expects private traders to offer farmers even higher prices, a prospect supported by the combination of the incoming higher tariff and stricter management of rice imports. For consumers, however, retail prices are set to remain unchanged in the immediate term.
"The January MSRP will stay at P43 because the duty is still 15 percent," Tiu Laurel confirmed, noting that announcements will be carefully timed to prevent unnecessary market speculation as customs and other agencies prepare for the tariff increase.
