The average farm-gate price of unhusked rice fell to P17.85 per kilogram in end-June, the lowest in two-and-a-half years, as rice imports surged past 1.3 million metric tons (MMT), data from the Philippine Statistics Authority (PSA) showed.
The average buying price of palay as of the fourth week of June declined by 16.51 percent, from last year’s P21.38 per kg, according to preliminary data from the PSA.
PSA data compiled by the BusinessMirror showed that the latest figure is the lowest since the third week of December 2016, when average quotations reached P17.84 per kg.
Figures from the PSA also indicated that the average farm-gate price of palay has fallen for the seventh consecutive week. The lowest was reported in Caraga at P15.05 per kg.
The average farm-gate price of palay usually picks up in June as the country prepares for the lean season, which starts in July, when rice harvest is usually minimal.
Higher imports
Rice farmers and other industry stakeholders attributed the drop in palay prices to higher rice imports this year following the implementation of the rice trade liberalization law.
PSA data obtained by the BusinessMirror showed that rice imports from January to April more than doubled to 1.317 MMT, from last year’s 468,949.86 metric tons.
The volume is comprised of rice imports brought into the country by the government and the private sector, according to the PSA.
The National Food Authority (NFA) allowed the out-quota importation of rice in the latter part of 2018 to pull down retail prices and temper inflation.
NFA data showed that as of March 5 at least 357,816.45 MT of rice arrived this year under the out-quota importation program.
The food agency monitored rice imports until March 5, when the rice trade liberalization law took effect and limited its role to buffer stocking.
NFA data showed the arrivals of rice it imported reached 532,775.285 MT, which it bought last year via the government-to-government scheme and open tender transactions.
The Bureau of Customs said it has collected P5.9 billion in tariffs from some 1.43 MMT of rice imported by traders following the implementation of Republic Act 11203 in March.
Retail prices
The average retail price of regular-milled rice (RMR) as of the fourth week of June fell to a 17-month low of P38.56 per kg, PSA data showed. The latest average quotation was 5.23 percent lower than last year’s P40.69 per kg and slightly lower than P38.68 per kg recorded last week.
This was the lowest retail price of RMR since the third week of January 2018, when the average quotation reached P38.45 per kg.
PSA data also showed that the average retail price of well-milled rice declined by 2.11 percent year-on-year to P43.10 per kg.
However, the average retail prices of RMR and WMR were still higher than the average quotations in the same period of 2015 to 2017.