The maximum suggested retail price (MSRP) of imported rice may go down to P49 per kilo by March if global prices remain stable, the Department of Agriculture (DA) announced Friday.

In an interview with reporters following an inspection at Cartimar Market in Pasay City, Agriculture Secretary Francis Tiu Laurel said that by February 5, "the MSRP on imported rice will be brought down to P55."

"Then, by February 15, we will lower it further to P52. By March 1, hopefully, we will break P50 per kilo, with the MSRP at P49, as long as world prices remain as they are today, a maximum landed cost of $530 to $550 per metric ton for five percent broken rice," he said.

By announcing the planned MSRP reductions early, Laurel said the DA aims to give rice industry players including the traders, retailers, wholesalers, and importers, a window for an orderly transition.

"This would allow them to liquidate higher-priced stocks and renegotiate contracts with suppliers," he said.

The agriculture secretary also mentioned that once the rice labeling guidelines, which are being worked out with the Department of Trade and Industry (DTI), are finalized, “we will have MSRP per type of rice.”

The DA noted that Japanese black rice, red rice, basmati, imported malagkit and locally produced rice are exempted from the MSRP.

The implementation of MSRP set at P58 a kilo for imported rice initially started in Metro Manila on Monday (Jan. 20).

"When we declared the MSRP at P58, a lot of people criticized me as someone living on another planet. But the truth is we have a plan. You cannot just shock the market… a lot of people will go out of business, and many will resist our efforts, and that is what we are trying to avoid," said Laurel.

Laurel pointed out that based on the date from the Bureau of Customs, the imported rice currently being sold in the market was still purchased at around $700 per metric ton.

According to DA, the price of 5 percent broken rice from Asian exporters ranges from $413 to $472 per metric ton, with Vietnam offering the lowest price at $413 as of Wednesday.

The DA said Vietnam has quoted the 25 percent broken variety at a price of $387 per metric ton. These prices exclude freight and other costs, and tariff.

It noted that industry analysts are optimistic that rice prices will ease further with the onset of Vietnam’s harvest season and reduced pressure from countries like the Philippines and Indonesia, which contributed to high demand early last year due to concerns over El Nino's impact on rice production. Robina Asido/DMS