The average farm-gate price of unmilled rice rose for the third consecutive week in mid-August and reached a new all-time high of P22.28 per kilogram (kg), according to data from the Philippine Statistics Authority (PSA).
In its report, the PSA disclosed the latest average quotation of palay in the second week of August was 13.5 percent higher than last year’s P19.63 per kg. The figure was also 0.63 percent higher than the previous week’s average farm-gate price of P22.14 per kg.
During the reference period from August 8 to 14, the PSA recorded the highest farm-gate price of palay in Central Visayas at P24.28 per kg. The government’s statistical agency observed the lowest
quotation of P19.88 per kg in the Caraga region.
At the same time, wholesale and retail prices of both well-milled and regular-milled rice sustained increments in the second week of August.
The average wholesale prices of well-milled rice was estimated at P43.71 per kg, which was 11.36 percent higher than the P39.25 per kg recorded in the same period last year. The figure was also slightly higher than the previous week’s average price of P43.44 per kg.
The retail price of well-milled rice expanded by 9.17 percent to P46.06 per kg, from last year’s average quotation of P45.94 per kg. It was also slightly higher than the previous week’s average price of P45.94 per kg.
The average retail price of well-milled rice recorded in the second week of August was the first time that it breached the P46-per-kg level.
Data from the PSA also showed that the average wholesale price of regular-milled rice in mid-August rose by 13.93 percent to P40.32 per kg, from last year’s P35.39 per kg. The wholesale price a week ago averaged P40.16 per kg.
At the retail level, the price of regular milled rice averaged P42.65 per kg. The figure was 12.27 percent and 0.73 percent higher than the average prices recorded in the previous week and a year ago, respectively.
Farmers said the increase in the average farm-gate price of unmilled rice is due to the continuous hike in their production cost. Traders were also buying palay at higher prices due to the low rice stockpile of the National Food Authority (NFA), according to industry sources.
Traders are aggressively buying palay at a higher price to beef up their stocks, effectively edging out the NFA in the market. The inability of the food agency to buy rice from farmers was a major factor in its failure to beef up its stockpile in recent months.
Image credits: PhilRice