High Retail Prices of Rice to Continue in the Philippines, Says Farmers’ Association
Published on: February 28, 2024.
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High retail prices of rice will persist as imported varieties dominate the local market, according to farmers’ group Samahang Industriya ng Agrikultura president Rosendo So. In a recent radio interview, So expressed concerns about the impact of increased rice imports on retail prices.
The latest data from the Bureau of Plant Industry (BPI) revealed that rice imports as of February 16 reached 569,286 metric tons, marking a 44.28% increase compared to the combined volume imported in January and February of the previous year.
So highlighted that the farmgate price of palay, the rice crop, in Vietnam is currently at P21 per kilo, while the wholesale price is P50 per kilo. These prices contribute to the high retail prices observed in the local markets, which range from P52 to P56 per kilo.
The BPI data also confirmed that more than half of the rice imports, equivalent to approximately 327,418.09 metric tons, originated from Vietnam. Thailand followed with 154,234.38 metric tons, and Pakistan with 60,638.3 metric tons.
So further explained that rice imports from Thailand, especially the 25% broken rice variety, are priced at $585 per metric ton. When factoring in delivery freight, the cost rises to around $620 per metric ton, equivalent to around P49 per kilo. By the time it reaches the markets, the price can range from P53 to P54 per kilo.
Despite the current challenges, So anticipates a decrease in retail prices once the harvest season begins on March 15, leading to an increase in local rice supply. Currently, the farmgate price of local palay is P24.50 per kilo, which is higher than in Vietnam but doesn’t account for shipping costs.
The US Department of Agriculture recently revised its rice import forecast for the Philippines to 3.9 million metric tons this year, driven by larger purchases from Vietnam. Last year, the Philippines imported nearly 3.6 million metric tons of rice, slightly lower than the record-high of 3.82 million metric tons in 2022.
Source: Zawya
