Palay prices still declining, says statistics agency

THE SLIDE in the farmgate prices of palay persists, with a kilo fetching P18.63 as of the third week of January, according to the Philippine Statistics Authority (PSA).

PSA monitoring showed  that the average price of paddy rice had fallen by P3.24 a kilo since peaking at P21.87 in June for the non-fancy varieties.

The price for rice in the husk is still above the National Food Authority’s (NFA) procurement budget per kilo. NFA now relies almost exclusively on importation of milled rice to maintain its inventory at required level.

Mandated to ensure stable supply and price of the staple grain, NFA buys palay at a basic rate of only P17. Including fees for delivery and drying, the NFA’s effective buying rate is P17.70 a kilo.

According to the Food and Agriculture Organization, the Philippines is expected to again import 1.8 million tons of milled rice this year amid projections that growth in domestic production will be insignificant if not nil.

This would mean the Philippines—in particular the NFA—will have to depend again on large volumes of imports in order to meet consumer demand as well as maintain stockpiles, the FAO added.

As of Dec. 1, the nation’s stock of milled rice swelled for the third consecutive month, gaining two days to be enough for 87 days of consumption.

The supply grew to 3.03 million tons from 2.95 million tons in the previous month amid the harvest season for the year’s main crop.

Latest data from the PSA show that the NFA’s inventory climbed to 490,000 tons, 96 percent of which is imported.

The NFA’s stock was good for 14 days of consumption, one day short of the agency’s mandate of keeping at least 15-days’ supply.