Rice prices rise due to bad weather, costlier inputs

MANILA  -Rice prices around the country continued to creep higher as of early July, data from the Philippine Statistics Authority (PSA) showed, while other food commodities surveyed during the period have become slightly cheaper.

Based on the PSA’s latest price situation report, the retail price of well-milled rice averaged P45.56 per kilogram during the first phase of July (between July 1 and July 5). This represents an uptrend for two consecutive periods after its average retail price inched up by 0.4 percent from P45.37 per kg in the second phase of June.

Likewise, it is 0.5 percent higher than the price level of P45.35 per kg recorded in the first phase of June.

For regular milled rice, the average retail price reached P41.23 per kg during the reference period.

This was also higher than the P41.03 per kg in the second phase of June and P40.95 per kg in the first phase of June.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said rice prices have risen following the storm damage suffered by the rice sector, especially in northern and Central Luzon, the country’s biggest rice producers.

He said Asian and world rice prices were at 15-year highs recently amid reduction in rice exports by India and Thailand due to dryspell/drought that reduced their rice production. This, he added, partly led to higher local rice prices.

“Higher prices of inputs also increased the production cost of rice, thereby leading to higher local rice prices,” Ricafort said.

Central Visayas recorded the highest average retail price at P48.25 per kg while the llocos Region had the lowest at P41.88 per kg.

The same PSA report showed the average price of pork ham (kasim) stood at P323.74 per kg against P325.59 per kg previously.

Among the regions, Northern Mindanao registered the highest price of pork ham at P366.72 per kg while the lowest was observed in Cagayan Valley at P299 per kg.

Pork liempo retailed for P340.09 per kg, lower than P342.01 per kg in the previous month.

The most expensive pork liempo was sold in Calabarzon for P379 per kg while the cheapest pork liempo was in Western Visayas for P294.06 per kg.

According to Ricafort, there was a correction in pork prices partly because of higher production in recent months and higher volume of pork imports.

A medium-sized chicken egg’s selling price dropped by 1.4 percent to P8.44 per piece in the first few days of July compared to last year’s P8.56 per piece in mid-June.

The highest average retail price was seen in Eastern Visayas at P9.49 apiece while Soccsksargen got the lowest price at P7.27 per piece.

“Prices of egg corrected lower after the series of price increases earlier this year on higher cost of feeds and other inputs,” he said.

“Higher egg prices encouraged greater production, especially before the typhoons in the latter part of July,” he added.

Meanwhile, the price of galunggong declined to P197.85 per kg from P200.01 per kg. The highest selling price of galunggong was recorded in Calabarzon at P259.20 per kg while the lowest was in the Zamboanga Peninsula at P129 per kg.

Red onion averaged P206.59 per kg, up by 2 percent. Mimaropa logged the highest price at P242.23 per kg while the lowest was seen in Ilocos Region at P167.50 per kg.