DA eyes launch of trial imported-local rice blend next month to temper prices

The Department of Agriculture (DA) is planning to launch the trial sale of blended imported and local rice in select retail outlets in the coming month, as part of efforts to temper the anticipated increase of the grain staple due to high farm input costs triggered by the Middle East crisis.

On Wednesday, Agriculture Secretary Francisco Tiu Laurel Jr. bared that, based on the DA’s computation, the price of rice could go up to as much as P62 per kilo as fertilizer prices have already surged from its pre-Middle East war level of P1,650 per 50-kilo bag to about P3,000.

During a Senate hearing, Tiu Laurel said they are studying a “rice blend” strategy by combining imported and locally produced rice as part of interventions to curb rising prices.

In a chance interview at the sidelines of Asian Development Bank’s investment forum on Thursday, DA spokesperson Assistant Secretary Arnel de Mesa echoed the Agriculture chief’s projection.

“The price of regular and well-milled rice is at P45 to P50 [per kilo]. Some go up to P53 to P55. The regular and well-milled rice, according to Sec, by September, the price of regular and well-milled rice could possibly go up to P62,” De Mesa said.

“Because, for example, after the harvest by September, and the price of our inputs is high, it means that the farm gate could possibly go up. If the farm gate goes up, now it's at P24 [per kilo]. It could be at P27 or at P30… If your farm gate is at P30, naturally, the price you buy from the market can go as high as P60 peso,” the DA official said.

De Mesa said the anticipated price increase could be mitigated as “there will be a lot of imported rice that's cheaper.”

“The suggestion is to have a blending. In the next harvest season, you will blend the cheap imported rice plus the expensive locally produced rice so that the resulting price will go down. For example, 60% of the cheap imported rice plus 40% of the expensive locally produced rice, if you combine them, then you can reduce the price of the rice,” the DA spokesperson said.

De Mesa said Tiu Laurel is targeting to launch the trial sale of the blended imported and local rice “next month.”

The Agriculture Department official said the price of imported rice is already at a 20-year low, describing it as “good news” for the local retail market.

“The price of rice did not increase in the international market… It is important that imports at cheaper prices enter the country now so we can ensure that the blending of imported and local rice will still be at favorable prices,” De Mesa said. —AOL, GMA News