Rice retail prices spiked by P2 per kilo
By J.Lo
“Farmgate price of palay has increased since last week and it follows once farmgate price goes up, retail price of rice will also go up… P45 per kilo and P40 plus per kilo of rice is still available,” Grains Retailers Confederation of the Philippines (GRECON).national president James Magbanua said retail prices of rice have increased by P2 per kilo amid rising farmgate price of palay..
Magbanua saidt in Visayas alone, buying price of fresh palay increased to P19 from P17 per kilo, and between P24 and P25 for dry palay.
He said buying price of palay is higher in Luzon.
Farmers’ group Samahang Industriya ng Agrikultura (SINAG) chairman Rosendo So earlier said farmgate price of palay has reached P27 per kilo.
“P27 per kilo buying price of palay is in Luzon…here in Visayas, it has yet to reach that level,” Magbanua said.
He does not agree with So’s proposal for President Ferdinand Marcos Jr. to impose another price ceiling of P45 per kilo on rice next month amid increase in farmgate price of staple.
“To me, price cap is not advisable… not healthy for economy,” Magbanua said.
He said farmers benefit from upward trend in farmgate price of palay.
“For the first time, I did not hear farmers complain about low buying price of palay,” he said.
Magbanua said government should subsidize retail price of rice instead of imposing price ceiling.
“Government can subsidize, but not price cap..if it will release funding, it is better to subsidize retail price of grains,” he said, noting farmers are encouraged to plant more because of high buying price of palay.
“We need to implement long-term solution to increase yield of farmers and lower production cost. .. should include transfer of technology, modernization of sector and lower production cost of farmers… government should address high cost of farm inputs,” Magbanua said.
He gave assurance supply of rice amid peak harvest season would be adequate.
Meanwhile, Raul Montemayor, national chairman of the Federation of Free Farmers (FFF), said traders anticipate high farmgate prices after peak harvest season and possible impact of El Niño phenomenon in increase in buying price of palay.
“There is an uptick in palay prices, which is good for farmers…but with large harvest coming in, I don’t think prices will spike up very much. ..if ever in short-term only, but increase in palay prices , when these should be going down during peak harvest season indicates traders anticipate higher prices after harvest months, probably because of continued high international prices and possible effects of El Niño,” Montemayor said in a separate message to media.
Montemayor is validating reports retail prices of rice have increased.
Like Magbanua, he also opposed suggestion to reimplement price ceiling on rice.
“This increase retail price of rice should not be reason to impose price caps and end up depressing palay prices and penalizing farmers again for something that is not their fault… best and most reliable way to offset increase in international prices and effects of El Niño is to encourage, not discourage, farmers to plant more by giving them good price for their produce,” he said.
Department of Agriculture (DA) has shut down possibility of reimposing rice price cap next month after farmers’ group asked FMJ to implement price ceiling anew to prevent “artificial rice price crisis” toward end of the year.
“No, price cap should really be short-term one… probably other measures that we can already do,” DA Undersecretary for policy, planning and regulations Mercedita Sombilla said in sidelines of 6th International Rice Congress.
SINAG said FMJ should reimpose price ceiling in November “to preempt new attempts to artificially increase retail price of rice.”
“We are all worried of possible repeat of rice price spikes last August where traders tried to justify increase in rice prices because of high farmgate prices of palay,” So said in statement.
“We are also aware scenario of increasing rice prices is being timed with fresh proposal to reduce tariffs on imported rice, corn and pork,” he added.
Instead of imposing price ceiling, Federation of Free Farmers (FFF) suggested government should focus on monitoring stocks, prices, hoarding and price manipulation and providing alternative marketing outlets that will keep other traders “honest.”
Philippines received highest rice export allocation from India with 295,000 metric tons of non-basmati white rice.
Among countries importing from India, Philippines has become its largest rice importer.
“Request made at leadership level and positive decision reflects growing confidence in bilateral relationship,” Indian embassy in Manila said in statement.
Six other countries set to receive export of around 1.034 million MT of rice are Cameroon (190,000 MT), Malaysia (170,000 MT), Cote d’Ivoire and Republic of Guinea (142,000 MT each), Nepal (95,000 MT) and Seychelles (800 MT).
FFF expressed concern over price of India’s rice exports.
“In the past, our local importers have not secured rice from India despite significantly lower prices, most probably due to concerns about quality and reliability of supply,” FFF national manager Raul Montemayor said in statement.
Rice retailers group Grecon said 295,000 MT of rice from India will help stabilize supply and prices of rice in the country.
“It’s a good sign especially with threat of El Niño phenomenon for first quarter of 2024… no fears of possible rice shortage as 295,000 MT is big. ..we will ensure food security in the country,” said Grecon national spokesman Orly Manuntag.
India had banned export of non-basmati white rice , its largest rice export category in July to ease domestic prices climbed after rains caused significant crop damage.
Ban further tightened global supply and sent world prices even higher since India supplies around 40 percent of global rice trade.
FMJ concurrently agriculture secretary, said in July Philippines may seek rice supply deal with India.
According to United States Department of Agriculture (USDA), Philippines has overtaken China as world’s top importer of rice.
In its latest “Grain: World Markets and Trade” report, USDA projected Philippine rice importation will reach 3.8 million metric tons in marketing year 2023-2024 while China’s imports will drop to 3.5 million MT.
So said farmgate price of palay has reached P27 per kilo, adding that spike in retail price of rice should be expected in November amid upward trend in buying price of staple food.
He told media rice price ceiling should return next month.
On Oct. 4, FMJ lifted Executive Order 39 imposing P41 and P45 per kilo price ceiling on regular and well-milled rice almost a month after it was implemented on Sept. 5, noting retail price of rice has stabilized with start of harvest season.
In Isabela, buying price of palay is now at P27 per kilo, So said.
“As result, traders go to Pangasinan and buying price in Pangasinan is almost P26 (per kilo),” he added.
Upward trend in buying price of palay was due to competition among traders, So noted.
“Traders competing to secure palay harvest of farmers is one of the reasons why farmgate price of palay in Isabela is high…traders also go to other provinces to buy palay, causing buying price of palay to go up, Ii farmgate price of palay is increasing, retail price of rice will also go up. .. P27 (per kilo) buying price of palay is equivalent to P43 (per kilo) of rice…if rice is delivered in Metro Manila, markup price of wholesalers and retailers could reach P47 per kilo,” he said.
So confirmed buying price of dry palay in Pangasinan and Nueva Ecija is now at P26 per kilo and P21 per kilo for fresh harvest; P27 per kilo for dry palay in Isabela and 23 per kilo for fresh harvest; and P26 per kilo for dry palay in Cagayan and P22 per kilo for fresh harvest.
As for warehouse raids, So said did not affect importation of traders, contradicting reports that some importers chose not to import amid fears brought by recent confiscation of rice stocks.
Buying price of rice in Thailand is now at $580 per metric ton, he added.
Based on DA’s monitoring, retail price of local regular milled rice ranged between P41 and P45 per kilo; local well-milled rice, between P48 and P48 per kilo; local premium rice, between P45 and P48 per kilo; and local special rice, between P54 and P62 per kilo.
Retail price of imported regular milled rice was pegged at P43 per kilo; imported well-milled rice, between P45 and P48 per kilo; imported premium rice, between P52 and P58 per kilo; and imported special rice, between P53 and P60 per kilo.
ISKUP! 