Palay farmgate prices down 5.5%

MANILA, Philippines — The farmgate prices of palay or unhusked rice continued to drop in the third quarter,  falling 5.5 percent from year ago levels.

Data from the Philippine Statistics Authority (PSA) showed that the seasonally adjusted farmgate price of  palay declined  to P16.38 per kilo from July to September versus P17.33 per kilo in the same period last year.

The third quarter figure was also 2.6 percent lower than the second quarter’s P16.82 per kilo.

The PSA also reported that the wholesale price of rice decreased by 1.7 percent to P37.41 per kilo.  The figure represents  a 0.4 percent decline from the P37.57 per kilo wholesale price in the previous quarter.

Meanwhile, the seasonally adjusted retail price of rice also slid by  0.5 percent to P42.36 per kilo.

Palay production increased by 4.3 percent to 5.2 million metric tons (MT) from 4.99 million MT in the previous quarter.

This also represents a 5.2 percent jump from the 4.95 million MT produced  in the same quarter last year.

In September, Agriculture Secretary William Dar urged local government units of top rice-producing provinces to buy palay from farmers amid declining  prices in the main cropping season as various agriculture groups raised concern over the falling prices of palay.

Federation of Free Farmers (FFF) board chairman Leonardo Montemayor earlier attributed the decline  to the lack of mechanical dryers during the rainy season and the absence of price support from the National Food Authority (NFA).

He also cited continuing rice importation as another cause of the decline in palay prices.
In a bid to address falling palay prices, Montemayor suggested the provision of drying equipment as well as the amendment of Rice Tariffication Law (RTL) to restore the NFA’s price support program.