Rice stocks build up in January

MANILA, Philippines — The country’s rice inventory maintained its upward momentum in January amid an open market regime.

Latest data from the Philippine Statistics Authority (PSA) showed that total rice inventory increased by five percent to 2.68 million metric tons (MT) as of the end of last month.

However, the current inventory is 13.7 percent lower than the previous month’s 3.09 million MT.

The PSA did not specify the number of days that the stock inventory of Filipinos’ main staple would be sufficient.

But, based on the average daily consumption of Filipinos of 32,000 MT, the current inventory is sufficient for 84 days.

Households accounted for 44.8 percent or nearly half of the total inventory, while commercial warehouses held about 35.6 percent. Supplies from the National Food Authority depositories cornered 19.6 percent of the total.

On a monthly basis, rice stocks in households and commercial warehouses decreased by 26 percent and six percent, respectively. However, a 9.2 percent increase was noted in NFA depositories.

Meanwhile, prices of Filipinos’ main staple continued to be on the downward trend with consumers saving more but farmers earning less following the influx of imported rice.

Data showed consistent lower prices for nearly a year now after the Philippines opened its rice industry to more private sector imports.

According to the PSA,  the average wholesale price of well-milled rice is now at P37.35 per kilogram as of the third week of January.

This is 10 percent lower than the P41.56 per kilo level a year ago but 0.3 percent higher on a weekly basis.

Its average retail price also decreased by eight percent to P41.38 per kilo.

Meanwhile, the wholesale price of regular-milled rice fell 14 percent to P32.97 per kilo, while the average retail price was  P36.42 a kilo.

While consumers are benefitting from the opening up of the market, local farmers are suffering from declining farm gate prices of palay (unhusked rice).

The average farmgate price of palay is P15.89 per kilo, just 0.4 percent better on a weekly basis.