AGRICULTURE Secretary Francisco Tiu Laurel Jr. on Monday said he expects a new rice import system to be implemented by July.
Earlier that day, the Department of Agriculture said Laurel had ordered the creation of a technical working group that would set guidelines on rice imports entering domestic markets, in order to stabilize prices without compromising local harvests.
One of the mechanisms the DA is considering is tying import allocations to purchasing palay (unmilled rice) from local farmers — similar to the Sugar Regulatory Administration (SRA) system of buying sugar and molasses.
“[A trader must] buy palay to get import allocation; that’s the general idea,“ Tiu Laurel said, adding that a pending bill, the Rice Industry and Consumer Empowerment Act, includes a provision on investing in the local rice industry to be an accredited importer.
“Initially, it seemed like nobody wants to be controlled,“ Tiu Laurel noted, saying that, as a former businessman, he understands the sentiments of stakeholders.
However, the Agri chief explained that the government just wants to protect farmers’ welfare vis-à-vis competition from rice imports.
Tiu Laurel also said he is anticipating the passage in June or July of the Rice Industry and Consumer Empowerment (RICE) Act, or House Bill No. 1 in the 20th Congress, classified as a priority by President Ferdinand Marcos Jr.
The bill seeks to return regulatory and market-intervention powers to the National Food Authority ( A) to ensure adequate supply and stable prices for rice, as well as a flexible floor price for palay even when market prices fluctuate.
Vietnam DT8 selling at higher prices
Meanwhile, Tiu said the DA has not set a new maximum suggested retail price (MSRP) for imported rice — amid reports that Vietnam’s DT8 rice and other imported varieties are selling at higher costs.
Vietnam DT8 is popular in China, Africa, and the Philippines.
According to the DA’s price-monitoring unit Bantay Presyo, premium imported rice cost P50 to P62 per kilogram in Metro Manila as of Feb. 9.
In January 2025, the initial MSRP for imported rice was P58/kg and went down to P43/kg six months later.
Tiu Laurel said Vietnam DT8 should cost only P46 to P48/kg, but attributed the higher prices to delayed arrivals and unloading at the ports due to the holidays.
He noted that the bulk of imports for January arrived only in its last week, while those for February have yet to arrive.
“What’s important now is that [the MSRP] is below P50/kg. The target is P48/kg, but there are cheaper variants at P46/kg,“ Tiu Laurel said, adding that the DA had asked rice importers to keep the price of 25-percent broken rice at P43/kg.
Determining a price range for imported rice depends on variant and origin, he noted, explaining that those from Myanmar, Vietnam and Cambodia have different prices.
The MSRP for imported rice may also depend on currency exchange rates in the following months, and how prices will play out in the international market.
“As of now, harvest seasons [in other countries] are just starting, so there’s a good chance that [prices] would go lower, [and] as long as the peso does not weaken,“ Tiu Laurel said, noting that rice tariffs won’t be an issue as long as the country has a quantitative restriction.
Annual rice imports demand is about 3.6 million metric tons (MT) based on the country’s current population, Tiu Laurel said, but added that the upper limit would be 3.8 million MT, including 200,000 MT for buffer stocks in case of disasters and other emergencies.
The A currently has 425,951 MT of rice stocks, equivalent to over 11 days of national consumption, said Administrator Larry Lacson.
