By Dean Aubrey Caratiquet
On Thursday (Nov. 28), Department of Agriculture (D.A.) Secretary Francisco Tiu Laurel Jr. announced the impending roll out of KADIWA Rice-for-All program in all major public markets to provide affordable options for consumers and curb persistently high retail prices of rice.
“Even with the tariff reduction, retail prices remain unusually high,” he said. “I have actual price bulletins of wholesale imported rice, and it’s really only at P37 to P38 per kilo. With lower tariffs and declining international prices, there’s no reason for the continued high retail prices.” Tiu Laurel explains.
“We’ve tried to avoid selling rice in major public markets to protect the livelihood of rice vendors,” the Secretary noted. “But since they haven’t significantly lowered prices for well-milled and regular-milled rice, we are now forced to step in and offer KADIWA rice. This will allow us to supply consumers directly and compete with retailers,” he added.
Since the implementation of Executive Order No. 62 in July, which reduced rice tariffs from 35% to 15%, the D.A. has been actively engaging with importers and retailers to encourage price reductions. However, progress has been slow, prompting D.A. to take a more direct approach.
The D.A. is in talks with importers who committed to supply KADIWA rice at P42 per kilo, ensuring affordable options for Filipino families. This strategy is expected to help bring down the retail price of rice while maintaining healthy market competition.
The wider Rice-for-All rollout will be undertaken by the D.A. in coordination with the Department of Interior and Local Government, the Department of Trade and Industry, the Department of Labor and Employment, the Department of Social Welfare and Development, and units of the Office of the President to support the KADIWA ng Pangulo program. An agreement signed in July 2023 by the various agencies had determined their roles in supporting local government units to establish and operate KADIWA ng Pangulo centers.
Despite the challenges, the Agriculture chief cited the positive impact of EO 62. “If the tariff had not been reduced, rice prices would surely be higher. Prices tend to increase quickly but decrease slowly—if at all. Nevertheless, we will continue our efforts to push prices down.”
The D.A.’s efforts come amid increased demand for rice due to disaster relief operations and reduced palay production caused by El Niño and recent typhoons. While local rice production struggles to meet the country’s growing consumption, the tariff reduction has boosted the national rice inventory, providing much-needed market stability.
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