Rice to Be Priced at P35 per Kilo Amid Food Security Emergency

Consumers will be able to purchase rice for P35 per kilo following the declaration of a food security emergency, although the National Food Authority (NFA) will incur losses of up to P2.25 billion, as it is selling the rice at a price lower than its procurement cost.

NFA Department Manager Roy Untiveros stated that the agency would release stocks of well-milled rice (up to three months old) to local government units (LGUs), government-owned and controlled corporations (GOCCs), and Kadiwa ng Pangulo (KNP) outlets at P33 per kilo. Compared to the NFA's 2024 purchasing price, this will result in a loss of P12 to P15 per kilogram.

The NFA plans to release up to 150,000 metric tons over the next six months, leading to an estimated loss of P2.25 billion. Letters have already been sent to LGUs to assess demand and determine monthly allocations, though responses are still pending.

This move follows Agriculture Secretary Francisco Tiu Laurel Jr.'s declaration of a food security emergency on rice, citing high prices despite lowered production costs and reduced tariffs on imported rice. Stocks will be sold through the Food Terminal Inc. (FTI) at P35 per kilo, aiming to reduce rice prices to pre-2023 spike levels.

Current rice prices in Metro Manila range from P41.24 to P59.14 per kilo, with Kadiwa prices at P38.00. Additionally, the Department of Agriculture (DA) announced a reduction in the maximum suggested retail price (MSRP) for imported rice from P58 to P55 per kilo, with plans to lower it further in the coming weeks.

This adjustment follows President Ferdinand Marcos Jr.'s Executive Order 62, which reduced rice tariffs to 15% until 2028.