Prices of local palay continued its upward trend as farmers took advantage of the demand for the staple.
Based on the Philippine Statistics Authority’s price monitoring report, the buying price for palay increased again by the last week of May, averaging P19.16 a kilo. Some provinces registered farm-gate prices as high as P25 a kilo.
The climb in farm-gate prices began when the government implemented a string of lockdowns to curb the spread of COVID-19, or the disease caused by the new coronavirus.
The lowest quotation was recorded in Negros Oriental and Davao at P13.38 a kilo while prevailing prices in most provinces hovered between P18 and P22 a kilo.
Palay prices dipped to its lowest of P10 a kilo in November last year following the sudden spike in the volume of imported rice.
But farmers are expected to enjoy favorable prices for the rest of the year, with the Department of Agriculture (DA) looking to ramp up production by intensifying distribution of inputs and machinery.
The extension of the enhanced community quarantine in Metro Manila and in other parts of the country is also expected to drive up demand especially with local government units, national agencies and numerous nonprofit organizations continuing relief operations.
The government has been easing lockdown restrictions over the past few weeks in order to open the recession-battered economy.
For this year, the overall supply of rice is projected to be augmented by imports to be brought in by the private sector. In its forecast, the US Department of Agriculture said that for this year, the Philippines would be the biggest importer of rice next to China.
Rice prices in the global market have surged to its highest in seven years as governments beefed up their respective stocks.
To lessen dependency on imports, the government said it would fast-track the implementation of rice programs that would bring down the staple’s production cost, noting that profitability is a huge incentive for farmers to plant palay. INQ