Even before Iran war: Rice prices hit historic high

CEBU CITY, PHILIPPINES — Rice prices in Cebu have already reached historic highs even before the Middle East conflict, and retailers warn that the ongoing war could push costs further upward.

Local rice retailer Erwin Gok-ong of the Cebu Market Vendors Multi-Purpose Cooperative (CEMVEDCO) said imported rice is subject to government price caps—set below ₱50 per kilo—while local rice has no such ceiling, leaving consumers exposed to further increases.

In an interview with The Freeman, Gok-ong said that Ivory rice is now sold at ₱62–₱65 per kilo, while Ganador commands ₱70–₱72 per kilo.

“Sugod gyud sa August 2025 unya nisaka’g mayo … ni-peak siya’g maayo pag December (2025) then January–February 2026,” he said, noting that Cebu’s rice prices hit record highs even before the Middle East war.

He added that imported rice is capped by government policy, but local rice is not. “Imported price control but more than ₱50 per kilo…local—no price cap,” he said.

Government records confirm this

In 2025, the Department of Agriculture imposed a ₱49 per kilo ceiling on imported rice, later adjusted to ₱43–₱45 depending on tariff changes and peso depreciation.

However, local rice was not covered by these caps, as the administration argued that higher local prices would benefit farmers.

This policy has drawn criticism from consumer groups, who say subsidies should support farmers rather than passing the burden to buyers, a matter also echoed by Gok-ong.

Middle East crisis impacts international market
Gok-ong warned that the Middle East crisis could worsen the situation. The Strait of Hormuz, a chokepoint for nearly 20 percent of global oil shipments, faces threats of disruption amid escalating tensions.

“Yes (price increase)…Kon musaka’g dayon og taman ang krudo…Kay ngano? Kon naa gu’y gubot sa kalibutan, kini gung mga dagko nga economy, mag stockpile dayon na silag pagkaon, buffer stock,” he said.

He recalled how Cebu felt the Ukraine war through shortages of potatoes used in fast-food French fries, as Ukraine had been a major supplier. “Kasagaran sa mga potato nga gigamit sa mga dagkong kumpanya, gikan man man sa Ukraine.”

China’s behavior in food markets adds pressure. “Parehas karon, basta naa’y gubot, ang China mangompra dayon og daghang pagkaon. Bisan exporter sila’g rice, mangumpra gihapo’g rice. Unya mangopra sila’g utanon,” Gok-ong said.

He described the global market as an auction where cash-rich buyers dictate costs. “Ang pagpamalit sa world market, mura auction…maahat gyud og pamahal tanan.”

For Cebu consumers, consequence painful

Aside from rice, Gok-ong anticipates price increases in cooking oil, sugar, flour, corn starch, chicken, pork, beef, fish, and mung beans—most of which are imported.

“Luoya lagi’s mga tawo, pero ang mga tawo…wa’ man pud nireklamo … pero ang mga nawng, guol kaayo, unya mangotkot sa ilang ulo…unsaon ta man, wa’ ma’y mahimo,” he said.

He also disclosed government agencies failing to convene the price monitoring council, including those from the local government units, noting that in past crises, retailers were consulted on price caps and supply measures. “Before, kon na’y price crisis, apil ko’g meeting…nay supply crisis, apil ko’g meeting…karon wala.”

There is some hope that the harvest season in Central Luzon, expected in mid-March, will ease rice prices temporarily.

Yet if oil costs continue to climb due to the Middle East war, Cebu will face sustained inflation across essential goods.

For now, rice prices in the city stand as the highest in history, a record set even before the war, and with global conflicts reshaping supply chains, consumers brace for more difficult months ahead.

Lapu-Lapu City, da eye rollout of P20 rice

The Lapu-Lapu City Government is coordinating with the Department of Agriculture (DA) for the possible rollout of subsidized rice priced at ?20 per kilo under the national government’s Kadiwa ng Pangulo initiative.

Lapu-Lapu City Mayor Ma. Cynthia “Cindi” King-Chan recently met with DA Engineering Program Manager Primel John Vergara and DA representative Benjie Bala to discuss the proposed implementation of the “Bigasan ng Bayan” program in the city.

Under the proposal, newly milled rice from the National Food Authority (NFA) will be sold at ?20 per kilo through designated Kadiwa ng Pangulo sites, which may include the Lapu-Lapu City Public Market.

The program will be implemented through a memorandum of agreement between the city government and the DA, with the department expected to subsidize the rice.

If finalized, the program could be rolled out as early as April, according to the DA officials.

The subsidized rice will prioritize vulnerable sectors such as senior citizens, solo parents, persons with disabilities (PWDs), and beneficiaries of the Pantawid Pamilyang Pilipino Program (4Ps). Farmers, fisherfolk, transport drivers, minimum wage earners, and public school personnel may also be included among the eligible buyers.

Qualified beneficiaries will be allowed to purchase up to 10 kilos of rice per transaction, with a monthly allocation of up to 30 kilos for priority sectors.

The Kadiwa sites are expected to operate daily. First-time buyers will need to present a valid identification card for registration and will be issued a QR code to facilitate faster transactions in future purchases.

The city government has expressed willingness to provide logistical and operational support for the program, including identifying possible distribution sites.

The mayor also proposed establishing one hub in Olango Island to make the subsidized rice accessible to residents in the island barangays.

Meanwhile, the DA is also looking to coordinate with the Department of Labor and Employment to tap beneficiaries of the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program to assist in repacking the rice.

| Written by Kristin De Dios, Caecent No-ot Magsumbol

The Freeman Digital

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