THE Department of Agriculture (DA) warned on Wednesday that the retail price of regular milled rice could surge to as high as ₱62 per kilo by September if current trends continue, attributing the sharp increase primarily to the skyrocketing cost of fertilizers caused by the ongoing conflict in the Middle East.
Agriculture Secretary Francisco Tiu Laurel Jr. disclosed that prices of fertilizer have nearly doubled, jumping from approximately ₱1,650 to around ₱3,000 per bag. This significant increase in production costs is expected to heavily impact the next harvest season, driving market prices upward compared to the current range of ₱50 per kilo and the pre-conflict level of ₱42 per kilo.
During the hearing of the Senate Committee on PROTECT, Tiu Laurel explained that the projected price hike is based on existing computations, assuming that farmers continue to rely on traditional farming methods and expensive inputs.
“If we do traditional practices… and farmers do not adopt the alternative fertilizers suggested by the DA, it can be ₱62 per kilo based on yesterday’s computation,” he said. The Secretary emphasized that the volatility in global markets, triggered by tensions in the Middle East, has disrupted supply chains and made production significantly more expensive, directly affecting the cost of the country’s staple food.
To mitigate the impact on consumers, the DA is actively exploring various strategies, including the implementation of a “rice blending” program that mixes locally produced grain with cheaper imported rice.
Tiu Laurel revealed that authorities are looking at ratios such as 70-30 or 60-40, prioritizing local produce while taking advantage of the lower landed cost of imported rice, which currently stands at ₱33 to ₱34 per kilo. “If we blend them, the average price will go down slightly,” he noted, explaining that combining the more expensive local rice with affordable imports could help stabilize market prices without completely disregarding the domestic industry.
Furthermore, the department is also studying the feasibility of a “corn blend” option, mixing rice with white corn to offer a more affordable alternative to the public.
With white corn priced at only ₱17 to ₱18 per kilo compared to palay at ₱25, Tiu Laurel argued that a 50-50 combination could substantially reduce costs for consumers. He assured the public that the quality remains acceptable, stating, “Actually, you couldn’t really tell the difference eh.” These measures are being considered as the DA aims to balance the need to ensure farmers earn a fair profit—projected at ₱22 for wet palay and ₱27 for dry palay—while protecting families from the burden of soaring food prices.
