The average farm-gate price of unmilled rice as of the second week of July rose to an all time-high of P21.60 per kilogram (kg), data from the Philippine Statistics Authority (PSA) showed.
The latest figure is higher than the previous record of P21.35 per kg posted in the last week of July until the first week of August 2014, according to PSA data compiled by the BusinessMirror.
The farm-gate price of unmilled rice during the period was 11.17 percent higher than the P19.43 kg recorded a year ago. It was also 0.47 percent higher than the P21.50 per kg recorded at the start of the country’s lean season, when rice production is minimal.
During the reference period of July 11 to 17, the PSA observed the highest palay quotation in South Cotabato province at P25.08 per kg. The lowest farm-gate price of palay was seen in Compostela Valley at P18 per kg, according to PSA data.
PSA data also showed that the average wholesale price of well-milled rice has breached the P42-per-kg level as it rose by 7.81 percent to P42.09 per kg.
“At the retail trade, the average price of well-milled rice at P44.81 per kg picked up by 0.27 percent from previous week’s level. Relative to the price in the same period of the previous year, it went up by 7.05 percent,” the PSA said in its weekly price monitoring report.
The wholesale and retail prices of regular-milled rice also sustained increments during the period.
“The average wholesale price of regular milled rice of P38.80 per kg this week recorded an increment of 0.28 percent from P38.69 per kg in the previous week,” the PSA said. “Relative to a year ago level of P35.32 per kg, it likewise moved up by 9.85 percent.”
The average retail price of regular-milled rice grew 8.91 percent year-on-year to P41.21 per kg. It was also 0.34 percent higher than its previous week’s average quotation of P41.07 per kg.
Rice imports
The arrival of rice imported by the National Food Authority (NFA) was expected to ease the increase in rice prices. However, bad weather delayed the delivery of rice imports to NFA’s warehouses and prevented the agency from immediately distributing rice to local markets.
“It is possible that [the price of rice continues to increase due to delay in our import arrival]. If you are only infusing a little volume in the market, definitely it will affect the price,” NFA Spokesman Rex Estoperez told the BusinessMirror.
Estoperez said around 53,000 metric tons (MT) of rice imported by the NFA via the government-to-government (G2G) procurement scheme are yet to be unloaded in Luzon ports.
“Almost all the 250,000 MT via G2G importation are already here in the country. It’s just that unloading is affected by the bad weather,” he said.
Rice industry and farm groups attributed the spike in retail price of rice to the depletion of the NFA’s stockpile.
“First of all, the increase in rice prices was due to the refusal of members of the NFA council to allow the NFA management to undertake timely rice imports,” they said in a five-page position paper.
“When the NFA ran out of subsidized rice stocks, the demand for commercial stocks increased and triggered the escalation in rice prices,” they added.
The position paper was signed by representatives of Federation of Free Farmers, Centro Saka, Alyansa Agrikultura, Rice Watch Action Network, Paragos-Pilipinas, National Union of Rural Based Organization, Pambansang Katipunan ng Kababaihan sa Kanayunan, Ka Tribu Ug and Lasang Foundation and Cacao/Coffee Alliance.