Close  
  • share this
Food prices on downtrend

Rice production cost in PH higher than neighbors’

/ 12:18 AM October 06, 2016

rice

The Food and Agriculture Organization said prices of major food commodities were back on long-term downtrend following price spikes of 2008-2012.

ADVERTISEMENT

In the meantime, domestic prices of rice in the Philippines remained relatively high compared to prices in neighboring countries as the country moved toward a more open trade regime for the staple grain.

Industry figures show that the cost of producing palay in the Philippines was around P10-P12 per kilo while farmers in Vietnam grow them at P6.50 a kilo and in Thailand and India at about P9 a kilo.

FEATURED STORIES

The FAO called for targeted safety nets to encourage small-scale farmers to continue producing while ensuring that food remained affordable to consumers.

“Low food prices reduce the incomes of farmers, especially poor family farmers who produce staple food in the developing countries,” FAO director general Jose Graziano da Silva said in a statement.

“This cut in the flow of cash into rural communities also reduces the incentives for new investments in production, infrastructure and services,” Graziano da Silva said.

He said that globally, food prices were believed to be back to their long-term downward trend in real terms, as supply growth outpaces demand, following a prolonged period of volatility in food markets.

Graziano da Silva said open trade could contribute to global food security and better nutrition, although openness to trade could also bring risks.

He said the elimination of agricultural export subsidies that affect prices in global markets could be a way to improve trade and help small farmers in developing countries.

The FAO chief said strengthening targeted social protection programs such as food vouchers was key to make farming more rewarding to producers and still affordable for consumers.

ADVERTISEMENT

In the Agricultural Outlook report issued jointly with the Organization for Economic Co-operation and Development, the FAO noted that mainly because of climate change, it was highly probable that “some abrupt price surges may occur” over the next 10 years.

Read Next
LATEST STORIES
MOST READ
Don't miss out on the latest news and information.
View comments

Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.

TAGS: Business, cost, economy, News, PH, Philippines, production, rice
For feedback, complaints, or inquiries, contact us.
newsinfo

Luzon, Visayas to experience fair weather

February 23, 2019 09:42 AM

entertainment

Catriona Gray opens up on breakup with Clint Bondad

February 23, 2019 08:36 AM




© Copyright 1997-2019 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.