DA: Rice prices could fall below P50/kilo in August

RICE prices could markedly fall next month as imports levied lower tariffs have started to arrive, the Department of Agriculture (DA) said.

Agriculture Assistant Secretary Arnel de Mesa said on Friday that around 35,500 metric tons (MT) of the grain had already been shipped to the Philippines under the 15-percent tariff established via Executive Order 62.

The rice tariff cut, from an already lowered 35 percent, is part of a new comprehensive tariff program approved by the National Economic and Development Authority Board last month “to ensure access and affordability… while balancing the interests of consumers and local producers.”

“Imported rice priced at P51 to P53 per kilo could drop to below P50 due to the significant tariff reduction,” de Mesa said.

He also claimed that prevailing prices had already decreased since July 11 and would “go down further.”

“There is a big difference when I looked at the rate and computation [of the possible drop]… it’s quite a significant reduction, to the P40s level definitely,” de Mesa said.

The DA official earlier said that retail prices of rice could go down by almost P7 a kilo in the next few months following the government’s approval of lower import tariffs.

The Department of Agriculture (DA) starts selling rice for P29 per kilo at the Kadiwa center at the Bureau of Plant Industry on July 12, 2024 under the government’s Program 29. Each beneficiary is allowed to buy 10 kilos of rice per month. Buyers only need to bring their ID and reusable containers or bags to put the purchased rice. PHOTO BY RENE H. DILAN

The Department of Agriculture (DA) starts selling rice for P29 per kilo at the Kadiwa center at the Bureau of Plant Industry on July 12, 2024 under the government’s Program 29. Each beneficiary is allowed to buy 10 kilos of rice per month. Buyers only need to bring their ID and reusable containers or bags to put the purchased rice. PHOTO BY RENE H. DILAN

The Department of Agriculture (DA) starts selling rice for P29 per kilo at the Kadiwa center at the Bureau of Plant Industry on July 12, 2024 under the government’s Program 29. Each beneficiary is allowed to buy 10 kilos of rice per month. Buyers only need to bring their ID and reusable containers or bags to put the purchased rice. PHOTO BY RENE H. DILAN

The Department of Agriculture (DA) starts selling rice for P29 per kilo at the Kadiwa center at the Bureau of Plant Industry on July 12, 2024 under the government’s Program 29. Each beneficiary is allowed to buy 10 kilos of rice per month. Buyers only need to bring their ID and reusable containers or bags to put the purchased rice. PHOTO BY RENE H. DILAN

The Department of Agriculture (DA) starts selling rice for P29 per kilo at the Kadiwa center at the Bureau of Plant Industry on July 12, 2024 under the government’s Program 29. Each beneficiary is allowed to buy 10 kilos of rice per month. Buyers only need to bring their ID and reusable containers or bags to put the purchased rice. PHOTO BY RENE H. DILAN

Price monitoring by the department showed that the prevailing prices of imported well-milled rice as of July 19 range between P51 and P55 per kilo, while regular milled rice is priced at P47 to P49 per kilo.

De Mesa explained that the gradual decline in the upper price limit also indicates that old stocks were being unloaded and new stocks were entering the market.

However, he acknowledged that around 35,000 MT that had arrived were “relatively small” and not substantial enough to impact rice prices immediately.

From January to May this year, average monthly imports were around 400,000 MT. Amid discussions surrounding a tariff cut, these fell to 181,530 MT in June.

De Mesa said that the DA was expecting an increase in rice imports with EO 62 having been issued and now in effect. As of July 11, year-to-date imports were already at 2.73 million MT, up by around 16 percent from 2.02 million MT a year earlier.