Palay output grows in Q4

MANILA, Philippines — Production of the seasonally adjusted palay (unhusked rice) increased by 4.2 percent in the fourth quarter amid improvement in area planted and harvested.

This is also 6.1 percent higher than the 4.58 million MT output the previous quarter.

The better production was attributed to increased area planted and harvested in Cagayan Valley and Western Visayas due to sufficient water supply.

PSA said there was also more usage of high yielding variety seeds coupled with good weather conditions during the cropping period in most regions.

The gross value of palay output, however, decreased by 21.3 percent to P111 billion due to lower farmgate prices.

The seasonally adjusted farmgate price of  palay declined by 24 percent to P16.27 per kilogram in the fourth quarter.

 This is also two percent lower than the previous quarter’s P16.55 per kilo.

The wholesale price of rice was P38.04 per kilo, down 7.4 percent year on year.

Similarly, retail price went down 11.2 percent to P41.85 per kilo.

The Rice Tariffication Law has contributed to the decline in retail prices of rice for consumers to enjoy.

However, it also resulted in farmers’ losses as farmgate prices plummeted to record levels due to the deluge of cheap imports.