THE Department of Agriculture (DA) said it will lower the maximum suggested retail price (MSRP) for imported rice to P43 from P45 per kilogram starting July 16.
The P2 adjustment was initially scheduled for July 1 but had been postponed due to heightened volatility in global commodity markets as fighting broke out in the Middle East.
“Global conditions have stabilized enough to resume planned price interventions,” the DA said in a statement, citing the ceasefire between Israel and Iran.
“Global rice prices have since declined, alongside softening oil prices,” it said.
Oil prices have been falling since the start of July after two major hikes in June, the second taking place after the US intervened in the Israel-Iran bombing and missile exchanges.
The strength of peso was also considered in adjusting the MSRP, it said.
“We are also seeing positive projections for record harvests from key producers like India, Pakistan, and Thailand,” the DA said.
“These developments could improve global supply and help pull prices further down,” it added.
The MSRP applies specifically to the 5% broken-grain variety, the highest-grade and most commonly consumed type of imported rice.
The DA said the MSRP imposed earlier this year has contributed to a downward trend in domestic retail rice prices.
Rice inflation continued to decline, falling 12.8% in May from the 10.9% decline a month prior.
The DA said it is also finalizing plans to introduce MSRPs for imported pork in August and potentially for chicken by September.“These measures aim to moderate retail prices amid tight domestic meat supply caused by ongoing animal disease outbreaks.” — Kyle Aristophere T. Atienza