farmers group warns of continued high retail prices of rice
Published on: February 27, 2024.
Filed under:
Farmers’ Group Predicts Continued High Retail Prices of Rice
The high retail prices of rice in the Philippines are expected to continue as imported varieties dominate the local market, according to farmers’ group Samahang Industriya ng Agrikultura. President Rosendo So mentioned in a recent radio interview that due to the abundance of imported rice, consumers can anticipate high retail prices for this month.
Data from the Bureau of Plant Industry (BPI) revealed that rice imports as of February 16 reached 569,286 metric tons, which is 44.28% higher than the combined volume imported in January and February of the previous year.
So highlighted that in Vietnam, the farmgate price of palay is at P21 per kilo, while the wholesale price has reached P50 per kilo. He added that the prevailing retail price in Vietnamese markets is between P52 and P56 per kilo.
Based on BPI data, more than half of the rice imports, or around 327,418.09 MT, came from Vietnam, followed by Thailand at 154,234.38 MT, and Pakistan at 60,638.3 MT.
So pointed out that Thailand is also a significant source of rice imports, particularly the 25% broken rice, which is priced at $585 per metric ton. When including the delivery freight, the cost could reach $620 per metric ton, with a landed cost of P49 per kilo. In local markets, this translates to around P53 to P54 per kilo.
However, there is some hope on the horizon. So expects retail prices to decrease with the start of the harvest season on March 15, which will bring more locally grown rice to the market. Currently, the farmgate price of local palay is P24.50 per kilo, slightly higher than Vietnam’s farmgate price.
The farmers’ group predicts that beginning March 15, the retail prices of well-milled rice will drop to P52 per kilo.
The US Department of Agriculture has increased its rice import forecast for the Philippines to 3.9 million MT this year, mainly driven by larger purchases from Vietnam. In 2021, the Philippines imported approximately 3.6 million MT of rice, a decrease from the record-high 3.82 million MT in 2020.
