THE government will keep the maximum suggested retail price (MSRP) for five percent broken imported rice at 43 pesos per kilo for now, as it completes procedures to raise import tariffs, Agriculture Secretary Francisco P. Tiu Laurel Jr. said.
In a statement, Tiu Laurel said the planned increase in rice import duties to 20 percent from 15 percent is set to take effect on Jan. 16, 2025 to comply with regulatory requirements. Any change in the MSRP will be considered only after the higher tariff is implemented.
“We have to complete the process before raising the tariff,” he said, adding that price adjustments should follow formal policy action.
The decision comes as the government seeks to stabilize farmgate palay prices after years of pressure from heavy imports. President Ferdinand Marcos Jr. ordered a four-month moratorium on rice imports starting in September to support prices during the peak wet-season harvest.
Rice imports reached about 4.8 million metric tons last year, dragging palay prices to as low as P8 per kilo in some areas before the ban. Since the freeze took effect, prices have recovered to around P17 per kilo for wet palay and about P23 for dry palay in several producing regions, according to the Department of Agriculture.
Once the import ban expires on Dec. 31, 2025, the government will allow an initial 500,000 metric tons of rice into the country, including about 50,000 metric tons allocated to Food Terminals Inc.
Tiu Laurel, who also chairs the National Food Authority Council, said the NFA plans to buy wet palay at P17 per kilo and dry palay at P21 during the harvest starting around March. He expects private traders to offer higher prices, supported by the higher tariff and tighter import management.
For now, retail prices will remain unchanged.
“The January MSRP will stay at P43 because the duty is still 15 percent,” Tiu Laurel said, adding that announcements will be timed to avoid market speculation as customs and other agencies prepare for the tariff increase. / KOC