Philippines : DA eyes new price cap on imported rice
Philippine agriculture authorities plan a new maximum suggested retail price on imported rice to curb rising prices amid peso weakness and higher global costs. The cap will cover five-percent broken rice, complement import controls, and limit 2026 rice imports to about 3.8 million tonnes to stabilise markets and protect consumers.
The Department of Agriculture (DA) is studying the imposition of a new maximum suggested retail price (MSRP) on imported rice to prevent a surge in prices amid higher costs in the foreign market and a weaker Philippine peso.
Agriculture Secretary Francisco Tiu Laurel said the agency is now determining the MSRP for rice imports, following the expiration of the ₱43-per-kilo limit during last year’s import ban on the commodity.
“We will announce a new MSRP soon, after evaluation,” he said on the sidelines of the induction ceremony of 2026 Economic Journalists Association of the Philippines (EJAP) officers on Monday night, Feb. 9.
The MSRP, which was introduced in January last year, specifically applies to five-percent broken rice, the country’s most commonly consumed variety of imported rice.
Tiu Laurel indicated that the new MSRP will also cover the same variety following the country’s resumption of rice importation on Jan. 1.
The price cap aims to ensure that retail prices do not exceed ₱50 per kilo amid reports that rice prices in certain areas are already hitting the ₱60 mark.
Rice prices have been on an upswing in recent weeks, largely due to delays in the arrival of imported rice and port unloading, which Tiu Laurel said should normalize soon.
To keep prices stable, the MSRP is expected to consider the type of imported rice and its country of origin in determining the most appropriate price limit.
Tiu Laurel said exporting countries are just starting their harvest season, so prices should remain relatively stable unless the Philippine peso continues to weaken.
In a report last week, the United States Department of Agriculture (USDA) said rice prices in the Philippines could increase if the local currency underperforms, as this would result in higher costs for local importers.
“Moving forward, we don’t know yet where the exchange rate will go. We don’t know where the price of rice in the foreign market will go,” Tiu Laurel noted.
Once implemented, the new MSRP is expected to complement the DA’s efforts to impose a quantitative restriction under the country’s rice importation policy.
Earlier, the DA ordered the formation of a technical working group to strengthen oversight of rice importation, including the implementation of a province-specific import scheme and linking importation to local purchases.
These new policies are expected to be in place in the second half of the year, coinciding with the anticipated passage of the proposed Rice Industry and Consumer Empowerment (RICE) Act.
Tiu Laurel said the DA is planning to limit rice shipments this year to around 3.8 million metric tons (MT), of which 200,000 MT will be allotted for the government’s buffer stock.
“In 2024, we reached 4.8 million [MT]. That’s why the rice sector is in a mess, particularly palay prices, which are declining due to over-importation because it’s under-regulated,” he said.
Planned rice imports for the year are slightly lower than last year’s shipments, which reached 3.8 million MT.
Based on data from the Bureau of Plant Industry (BPI), the country’s rice imports last month rose 34 percent to 375,983 MT from 279,940 MT in January last year.
The bulk, or 96 percent, of the shipments last month was regular milled rice, with the remainder covering special rice.
Vietnam was the country’s top supplier for the month, shipping a total of 379,191 MT, or nearly 93 percent of the total.
BPI data showed that it approved 453 sanitary and phytosanitary import clearances (SPSICs) last month, of which 54 percent, or 245, were used.
The SPSICs were allotted for the importation of 484,060 MT of milled rice, but only 78 percent arrived in the country.
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Source : Manila Bulletin
