Philippines Grapples with Rice Price Reduction Challenge Despite Abundant Supply
Published on: February 19, 2024.
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Manila, Philippines – Despite having an abundant supply of rice, the Philippines is still facing challenges in reducing the price of this essential staple, according to Agriculture Undersecretary Roger Navarro. While the country had a successful bumper harvest last year and has imported additional rice in January, Navarro stated that it is difficult to lower prices due to the high cost of rice in exporting countries like Vietnam and Thailand, which are the main suppliers for the Philippines.
Navarro explained that in Vietnam, the cost of rice is 48 pesos (0.87 U.S. dollars) per kilo, while in Thailand, it is 52 pesos (0.93 dollars) per kilo. The challenge lies in stabilizing the supply of rice rather than focusing solely on the price. The daily demand for rice in the Philippines is approximately 37,000 metric tons, and the country needs to import around 300,000 tons monthly to supplement local production.
Inflation in rice prices increased to 22.6 percent in January compared to 19.6 percent in December of the previous year. To address this issue, the Philippines has already imported 590,000 metric tons of rice, which will help supplement local output when the harvest season begins in the upcoming months.
It is crucial for the Philippines to find a balance between supply and demand to ensure stable rice prices in the market. With the country heavily dependent on rice as a dietary staple, efforts should be made to improve local production and reduce reliance on imports.
Source: [UrduPoint][1] [1]: https://www.urdupoint.com
