By TED CORDERO, GMA Integrated News

The cost of the Philippines’ main staple, rice, continued its deceleration streak for the second straight month in February 2025 amid the continuous effects of declining global prices, reduction in rice import tariffs last year as well the impact of the declaration of food emergency security to tame the grain’s retail prices.

At a press conference on Wednesday, Deputy National Statistician and PSA Assistant Secretary Divina Gracia del Prado reported a year-on-year contraction in rice inflation of -4.9% last month, a steeper decline compared to the -2.3% deflation seen in January 2025.

February’s rice deflation of -4.9% was also the lowest for the grain staple since April 2020’s -5.7% print.

The trend of easing inflation for rice seen since August 2024 was consistent with the PSA’s expectation that it will begin easing towards the second half of 2024 due to base effects, particularly when it began its uptrend in August 2023, as well as the impact of lower rice import tariff which took effect early July.

Executive Order No. 62, issued by President Ferdinand Marcos Jr. in June 2024, reduced the tariff rate for imported rice to 15% from 35%.

To illustrate the contraction in rice inflation seen last month, Del Prado bared the month-on-month and year-on-year national average prices of regular, well-milled, and special rice varieties during the period.

In particular, the following are the average prices of rice at the national level in February 2025:

Regular milled – P47.23 per kilo from P48.25 per kilo in January 2025 and P50.44 per kilo in February 2024
Well-milled – P53.46 per kilo from P54.14 per kilo in January 2025 and P55.93 per kilo in February 2024
Special – P62.65 per kilo from P63.13 per kilo in January 2025 and P64.42 per kilo in February 2024

Del Prado said the PSA has also observed that the declaration of a food security emergency on rice has been impacting prices.

The declaration allowed the National Food Authority (NFA) to sell its buffer stocks to the public at P35 per kilo to tame the retail prices of the grain.

“It may further slow down or maintain negative inflation if the DA goes on with its plan to further reduce the MSRP (maximum suggested retail price) of [imported] rice,” del Prado said.

Beginning March 1, the DA slashed further the MSRP of imported rice to P49 per kilo.

The DA first introduced the MSRP on January 20, setting an initial price of P58 per kilo.

The imposition of an MSRP on imported rice is described by the DA as a “non-coercive” measure aimed at steering retail prices of imported rice to reflect the steady decline in world market prices and the decision of President Ferdinand Marcos Jr. to slash rice tariffs from 35% to 15%.

The DA has since gradually reduced the MSRP to ease the transition for the rice industry.

Before the introduction of the MSRP, imported rice was sold between P62 and P64 per kilo, according to the DA.

The plan to expand the Kadiwa ng Pangulo Rice-for-All program to malls and supermarkets would also contribute to the anticipated further contraction in rice inflation throughout the year, Del Prado said.

Published Date: March 5, 2025