THE rice trade liberalization (RTL) law was able to hit its target of cutting the retail prices of the staple, but the distribution of free equipment to planters has yet to be implemented, government officials said on Wednesday.
In a news briefing to mark the first anniversary of the RTL law’s effectivity, National Economic and Development Authority (Neda) Assistant Secretary Mercedita A. Sombilla noted that the average retail price of rice is now at P36 per kilogram, the lowest in six years.
“The average retail price of regular milled rice has gone down to P36.33 per kg in January, which is P4.40 lower than the level seen last year,” Sombilla told reporters during an economic briefing held in Malacañang.
The Neda official said this was a “significant improvement” compared to the average retail price of P38 per kg seen in 2017 and 2018.
Sombilla said retail price could even go to as low as P34 per kg this year. “But you know, there are so many factors that will go into that, including how the world market will also evolve in the coming months and years.”
This projection, she said, will depend largely on whether Vietnam and Thailand–the country’s top rice suppliers–will suffer a crisis in the near future.
Retail prices fell despite the partial implementation of some provisions of the RTL law, particularly initiatives that should be bankrolled by the Rice Competitive Enhancement Fund (RCEF).
Agriculture Secretary William D. Dar said the government has yet to use the RCEF to distribute equipment to planters.
Currently, he said the Department of Agriculture (DA) has only validated the 944 farmers’ cooperatives that will benefit from the mechanization program.
Dar said the government is targeting start the implementation of the mechanization program this month.
He said mechanization is expected to cut rice production cost of rice by a much as P3 per kg.
Image credits: CESAR M. PERANTE