Philippines: Rice price drop in October unlikely

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The P7 per kilo drop in rice prices in October is not possible amid the spike in the prices of imported rice from Vietnam where the bulk of the staple is sourced, according to farmers' groups.

Samahang Industriya ng Agrikultura chairman Rosendo So noted that Vietnam has already increased the buying price of rice by $40, from $580 to $620 per metric ton (MT).

In 2023, the country imported at least 2.99 million MT from Vietnam or 83 percent of the total rice imports of 3.6 million MT.

From January to August this year, the country already imported 2.09 million MT from Vietnam or 77 percent of the total rice imports of 2.7 million MT.

Agriculture Secretary Francisco Tiu Laurel Jr. has said that the effects of Executive Order 62 on lowering tariff on imported rice can only be felt starting October as the retail price of local rice remains cheaper compared to those of imported grains, more than a month after the EO took effect on July 7.

So said that cheaper rice are only available in Kadiwa stores with the subsidy being provided by the government.

He added that it is only the farmers of Vietnam who benefit from EO 62 as they increased their buying price immediately after the implementation of the 15 percent tariff on imported grains.

'If you go to the markets, the cheaper rice disappears. You cannot buy regular milled rice in the market. The Philippine Statistics Authority failed to report this and if consumers cannot buy regular milled rice, they are forced to buy the well-milled rice at higher price. This means that the retail price of rice increased,' So noted.