DA expects rice prices to drop PHP4-PHP7/kg in Jan 2025

The Department of Agriculture expects rice prices to drop by up to PHP 7 per kilogram in January 2025 due to the government's decision to cut import tariffs, but current market conditions suggest a slower decline.

Agriculture Secretary Francisco Tiu Laurel Jr. acknowledged that excess stocks purchased under higher tariffs have delayed price reductions, with full impact expected only by October 15 or January next year.

Laurel estimated that while prices could drop by PHP 4 to PHP 7 per kilogram, current retail prices around PHP 50 to PHP 52 per kilogram may fall to PHP 48 or PHP 45 by January.

The Federation of Free Farmers (FFF) noted that despite the tariff reduction from 35% to 15%, rice retail prices have hardly moved, with some traders reportedly pocketing around PHP5 billion in savings since Executive Order No. 62 was implemented.

Finance Secretary Ralph Recto previously stated it typically takes a few months for tariff reductions to fully impact prices, suggesting that consumers might see more affordable rice prices by Christmas.