Rice prices seen remaining stable throughout Iran crisis

THE Department of Agriculture (DA) said prices of rice will remain stable in the following months, with the risks posed by the Iran crisis on farmers’ fuel and transport costs offset by inventory levels boosted by the ongoing harvest as well as imports.

At a briefing, Agriculture Assistant Secretary and Spokesman Arnel V. de Mesa said the rice harvest in March and April will keep supply ample until the lean months of August to September.

“Plus, the imports that came in during the first two months totaled almost 700 thousand metric tons (MT). We’re expecting, for March and April, an additional 300 thousand MT,” Mr. de Mesa said.

He said regular-milled rice prices will average about  P40 per kilogram, domestically grown well-milled rice P45, imported regular rice P48, and imported well-milled rice P52-P55.

“For now, there is no indication that we will hit (P60 per kilo for imported rice).”

Mr. de Mesa also said the DA does not foresee significant price movements at retail level because Philippine rice imports do not need to transit the waters affected by the fighting around Iran, unlike energy imports.

“For imported rice,  60-70% is from Vietnam. And then, the rest is also from Southeast Asia. Pakistan accounts for a small portion,” he said, noting that any disruption to Pakistan grain shipments can be filled by Vietnam.

Mr. de Mesa said the main areas of concern are indirect effects like the cost of fuel absorbed by farmers.

Separately, Agriculture Secretary Francisco P. Tiu Laurel, Jr. said oil prices will rise with extended fighting, affecting petroleum-based fertilizers, freight costs, and fuel.

To cushion the impact of rising fuel prices, the DA will release P100 million in fuel subsidies for farmers and fisherfolk, with an additional P50 million available if crude oil price benchmarks hit $80 per barrel.

The subsidy program, authorized by DA 2025 Memorandum Circulars 35 and 42, farmers are to receive P5,000 each while fisherfolk will get P3,000. The funds are expected to be distributed to 14,354 farmers and 14,947 fisherfolk.

To qualify, farmers must be in the Registry System for Basic Sectors in Agriculture (RSBSA) and own or rent machinery. Fisherfolk must be registered in RSBSA or the Fisheries Registration System, own boats not exceeding three gross tons, and use fishing gear compliant with fishery laws.

The subsidy will be distributed through Intervention Monitoring Cards issued by the Development Bank of the Philippines. The cards can only be used to purchase fuel at designated stations and cannot be withdrawn as cash or used for other purposes.

For areas far from fuel stations, the DA will issue vouchers worth P3,000 for fisherfolk and P5,000 for farmers.

Mr. de Mesa said registration of eligible beneficiaries has started, with the target to complete distribution by March to April, in time for the next cropping season starting in May to June.

Mr. de Mesa said the Philippines expects to remain food-secure, with stable prices for rice and other agricultural commodities. — Pierce Oel A. Montalvo