Retail prices of rice in the local market declined modestly in January, the first time in nearly four years the staple commodity’s prices went down.
The Philippine Statistics Authority (PSA) traced the decline to softening global prices and a reduction in domestic rice tariffs to 15 percent from the previous 35 percent in July last year following Executive Order No. 62 issued by President Marcos.
On Wednesday, National Statistician Claire Dennis Mapa reported that rice posted a year-on-year deflation of -2.3 percent in January 2025 from the 0.8 increase seen in December 2024.
“This is the lowest inflation rate for rice since June 2020, when we had a minus 2.8 percent,” he noted.
The deflation in rice prices last month was also the first since the 0.1 percent decline in December 2021.
Mapa, also an Economic Planning Undersecretary, added that current price trends suggest the deflation in rice prices will continue through July.
It was further reported that regular-milled rice softened to P48.25 per kilo from P48.81 per kilo in December 2024 and P49.65 per kilo in January 2024.
The PSA’s head pointed out that regular milled rice saw a month-on-month deflation -1.1 percent and year-on-year contraction of 2.8 percent.
For his part, Agriculture Secretary Francisco Tiu Laurel Jr. said the deflation of rice prices in January reflects the effectiveness of the Marcos administration’s measures to stabilize the country’s staple food prices.
“This is welcome news. It clearly shows that the efforts of President Bongbong Marcos, particularly the sharp tariff reduction last year, are steps in the right direction,” Sec. Tiu Laurel said.
Deflation is a decrease in the general price level of goods and services, often due to an increase in supply.
Meanwhile, Senator Risa Hontiveros raised doubts about the Department of Agriculture’s (DA) declaration of a “food security emergency” for rice, saying it offers little hope for Filipinos struggling with high prices and supply issues.
“The public seems to have little to expect from the DA’s declaration of a “food security emergency” regarding rice,” she said in a statement.
“If the government does not implement the necessary reforms, President Marcos’ promise of affordable rice may once again remain unfulfilled by 2025,” Hontiveros added.
The National Food Authority (NFA) plans to add 30,000 metric tons of rice to the market each month, but the Senator argued that this is a small amount compared to the one million metric tons consumed monthly by Filipinos.
As this developed, the Land Transportation Office (LTO) announced its readiness to provide aid for the supply delivery chain.
LTO chief Vigor Mendoza II ordered all regional directors and heads of law enforcement units to provide help on cargo trucks delivering rice supply across the country.
This assistance aims to ensure the unhampered and smooth national government intervention through the delivery of rice supply to various areas, particularly in cities and municipalities to be identified as having shortage or extraordinary increase in rice prices.
“Under the guidance of our Transportation Secretary Jaime Bautista, we will make available some of our personnel to escorts cargo trucks that would be tapped to deliver rice from the point of origin to point of destination,” Mendoza said in a statement.
