Rice prices continue to rise
Wholesale and retail prices of rice in the market continued to go up since the start of the year following the tightness in the supply of the staple mainly from the government’s grains agency.
Since January this year, data from the Philippine Statistics Authority showed rice prices have gone up by an average of 4.5 percent, putting retail prices of well-milled rice and regular-milled rice at P43.80 and P40.03 a kilo, respectively, as of the last week of April this year.
These were 4.2 percent and 3.3 percent higher than prices in January and 7.13 percent and 5.75 percent higher than prices in the same period last year.
Even wholesale prices of well-milled and regular-milled rice have jumped to P41.16 and P37.60 a kilo, respectively. Compared to year ago levels, prices have gone up by 7.13 percent and 8.26 percent, respectively.
Aside from tight supply following the dwindling stocks of the National Food Authority (NFA), global oil prices have also been volatile since the early part of the year, adversely affecting prices of food commodities. In the Philippines, fuel cost accounts for 30 percent of a farmer’s total production cost, on top of transportation costs.
Elevated rice prices have contributed to the rise in the country’s inflation rate to its highest in more than five years. Another source of price pressure was the implementation since Jan. 1 this year of the Tax Reform for Acceleration and Inclusion (TRAIN) law, which raised or imposed new taxes on “sin” products, petroleum, vehicles and sugary drinks, among others.
Thus the calls from Senators Bam Aquino and JV Ejercito that the implementation of the TRAIN law be suspended to stop the rising inflation. Economists have warned, however, that doing so would do more harm than good to the economy.
The Bangko Sentral ng Pilipinas is also moving to stop inflationary pressure by raising interest rates, which help temper consumption.
According to the National Economic and Development Authority, rice comprises 10 percent of a Filipino’s total consumer index. An increase in its price can eventually lead to higher retail prices of other essential food items.
“Unlike other commodities where consumers may opt not to buy when prices are increasing, rice is considered as a staple food especially among poor households,” said Samahang Industriya ng Agrikultura chair Rosendo So.
“In making economic decisions, there should always be a social justice component, and so we are asking the government to support the farmers financially who are the most affected in this situation,” he added.
