Palay farm gate prices up by more than 2% in August

—INQUIRER FILE PHOTO

The average farm-gate price of palay (unhusked rice) inched up by 2.3 percent in August this year to P17.62 a kilogram from P17.23 per kg a year ago, but declined by 1.3 percent from P17.85 a kg last month, latest figures from the Philippine Statistics Authority (PSA) showed.

These farm-gate prices translate to a selling price of P38-P50 a kilo for milled local rice as of Tuesday, same as last year, based on the Department of Agriculture’s price monitoring.Among the regions, Western Visayas recorded the biggest price hike of 13.6 percent, followed by Bicol Region with a jump of 9.9 percent.

Eastern Visayas, on the other hand, recorded the biggest price drop of 13.4 percent year-on-year in August. Central Luzon, a rice-producing region, came next with a minimal drop of 0.3 percent.

All other regions posted year-on-year price hikes.

Raul Montemayor, national manager of Federation of Free Farmers, said palay prices usually increase from July to September because of low harvest volumes and depleted stocks.

Imported rice is supposed to cover any supply shortfall and significantly bring down prices, but they have not because, according to Montemayor, imports have become costlier following the depreciation of the peso against the US dollar and the slight uptick in global prices.

The increase in the average farm-gate price, however, is “very small” relative to the P3 to P5 per kg surge in the cost of producing palay due to rising input costs, particularly fertilizer and fuel. INQ