Rice to be sold at P35/kilo under food security emergency

Consumers will be able to buy rice at P35 per kilo following the declaration of the food emergency on rice, but this will entail losses of up to P2.25 billion for the National Food Authority (NFA) as it will be selling at a price lower than what it had procured the supplies.

According to NFA Department Manager Roy Untiveros, the agency will be releasing its stocks—well-milled rice of up to three months old—to local government units (LGUs), government-owned and -controlled corporations (GOCCs), and Kadiwa ng Pangulo (KNP) sites at P33 per kilo.

Compared with the NFA's actual buying price in 2024, the NFA estimates losses per kilogram of P12 to P15. With the agency set to release up to 150,000 metric tons within six months, this will translate to total losses of P2.25 billion.

Untiveros said the NFA has already sent letters to LGUs to establish the demand, which will be the basis of the monthly allocation in areas, but has yet to receive a response.

This comes as Agriculture Secretary Francisco Tiu Laurel Jr. on Monday, February 3, declared a food security emergency on rice based on the recommendations from the National Price Coordinating Council (NPCC), citing high prices even after the cost of production was lowered, and lower tariffs on imported rice.

The stocks will be released through the Food Terminal Inc. (FTI), and will then be sold to the public at a price of P35 per kilo, among the cheapest available, as the government seeks to lower prices of rice to levels seen prior to the spike recorded in June and July 2023.

"Ito po ay suggested to be sold to the public by the LGUs at P35 (per kilogram). Hopefully ito po ay magkaroon ng epekto sa pagbaba ng presyo ng bigas sa ngayon," Untiveros said in a briefing in Quezon City.

(This is suggested to be sold to the public by the LGUs at P35. Hopefully, this will have an effect on bringing down the current prices of rice.)

Latest data available from the DA's price monitoring show that prices in Metro Manila markets ranged from P41.24 to P59.14 per kilo as of February 1, while Kadiwa prices were at P38.00 per kilo.

This compares to the P36.00 to P60.00 per kilogram range recorded on May 31, 2023, prior to the increase recorded in June and July 2023.

Lower MSRP for imported rice

Meanwhile, the DA announced a downward adjustment in the maximum suggested retail price (MSRP) for imported rice, as the agency seeks to reduce this even further moving forward.

Agriculture Assistant Secretary Arnel de Mesa said the MSRP will be P55 per kilo effective Wednesday, February 5, from the current P58 per kilo.

While the MSRP only caters to Metro Manila, De Mesa said, its coverage will be expanded nationwide starting February 15.

"After this reduction, we plan to lower it further to P52 a kilo by mid-February and then at P49 per kilo two weeks after. This should reflect the lower global prices of rice and the reduced tariff," Tiu Laurel said in a separate statement.

This developed as President Ferdinand “Bongbong” Marcos Jr., under Executive Order 62, last year lowered tariff rates for rice to 15% until 2028 from 35% previously. — VDV, GMA Integrated News