Department of Agriculture (DA) said retail prices for rice are expected to increase in the upcoming weeks. This is primarily due to high palay farmgate prices during the dry season, as well as increased input costs and low buffer stocks.
“Our projection is an increase of P5 [per kilo]… that’s the maximum,” Rex Estoperez, the Assistant Secretary and deputy spokesperson of the Department of Agriculture (DA), provided insights on various topics related to the department’s activities and policies.
As per the DA official’s statement, the procurement price of rice ranges from P22 to P23 per kilo.
“During the Summer harvest season, prices are normally high because the palay is already dry… Plus, the cost of inputs are also increasing,” Estoperez said.
“This is a normal occurrence during Summer… Price levels are abnormal and have already reached P23,” he added.
The anticipated increase in the cost of the Philippines’ staple food, rice, can be attributed to various factors, including a decrease in inventory levels that is only sufficient for 51 days, below the ideal level of 90 days.
Rices price to increase by P5 – DA
Based on data from the Philippine Statistics Authority, the national rice inventory has declined to 1.77 million metric tons as of January, a reduction of 30.3% from the previous year’s level of 2.53 million metric tons. The year-on-year decline in rice inventory amounted to 5.1%, from 1.86 million metric tons to the current level.
To maintain a sufficient rice stockpile for the country, Rex Estoperez, the DA’s Assistant Secretary and deputy spokesperson, suggested that the rice inventory should be at 37,000 metric tons per day, equivalent to a stockpile of 3.33 million metric tons for 90 days.
Recent price monitoring data from the DA as of April 4 indicates that the cost of well-milled local rice ranges from P39 to P46 per kilo, while regular-milled rice costs P34 to P40 per kilo.
Headline inflation or the overall inflation in the Philippines slowed down further to 7.6 percent in March 2023 from 8.6 percent in February 2023. Inflation rate in March 2022 was lower at 4.0 percent. The average inflation for the first quarter of 2023 stood at 8.3 percent.
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